Redundancy - pay in lieu of Notice and Holiday


I have been made redundant this week. I have a months notice and still have 17 days of annual leave which I’m allowed to carry over to 2021. They said they will pay me everything at once this month, so I’ll be off their payroll by end of year. 

My question is, am I entitled to be paid for both the months notice AND 17 days annual leave I have, or can they say my outstanding leave counts as part of the notice period? And if so, does the rule about them having to give me 2 days notice for every day of annual leave they force me to take in my notice period count when the payments are all being made up front (PILON).

Any help is much appreciated!


  • They should pay you the notice and the holiday pay. 
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Sounds as if they are going to be honourable and pay you for both. 
  • getmore4less
    getmore4less Posts: 46,882
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    Accrued unused holiday up to the date of termination needs to be paid, it cannot be offset by PILON.
    (that will depend on the holiday year)

    They could if they wanted terminate at the end of the year, use up some of the holiday then PILON any outstanding notice period.
    You would need to check the contract to see if statutory notice for holiday applies, they can put terms in that override that.
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