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Completed Months only on Holiday Pay

I am leaving my employer near the end of May, but when they are calculating my holiday pay, they has said that they only pay for completed months only (so only 4 months). Is this correct? Becuase say, someone leaves on the 30th May - that is not a completed month, so they lose a whole months holiday pay, approx 2.2 days.

For me I will be losing around 1 and half days which is around £200. They state it is in my contract, but it does not seem fair to me.

If the world is a stage... I want better lighting!

Comments

  • Undervalued
    Undervalued Posts: 9,881 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 27 April 2021 at 11:57AM
    I am leaving my employer near the end of May, but when they are calculating my holiday pay, they has said that they only pay for completed months only (so only 4 months). Is this correct? Becuase say, someone leaves on the 30th May - that is not a completed month, so they lose a whole months holiday pay, approx 2.2 days.

    For me I will be losing around 1 and half days which is around £200. They state it is in my contract, but it does not seem fair to me.

    It is not lawful as far as you statutory holiday (28 days per year) is concerned. They must calculate it exactly.

    If you get additional holiday over and above the statutory minimum then the firm can apply different rules to the extra days.

    Keep in mind however that the employer is quite entitled to insist that the employee uses up their remaining holiday during the notice period. There is no right for an employee to insist on not taking the holiday, so as to be paid for it after they leave. That is totally up to the employer.
  • theatretony
    theatretony Posts: 390 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    edited 27 April 2021 at 12:12PM
    We get 22 days (excluding bank hols), and I will have taken 6 days, so they are saying they will only pay me 1.5 days holiday (7.5 accrued) I think it should be at least 8.5 or 9 days

    Is there any printable documents i can show them?
    If the world is a stage... I want better lighting!
  • Undervalued
    Undervalued Posts: 9,881 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 27 April 2021 at 1:13PM
    So you get 30 days in total, which is two days more than the statutory minimum (assuming you work a normal full time five day week).  As I said, they may be able to claim that special rules apply to those two days. They might be able to argue that if you resign before the end of the holiday year those two days are forfeit.

    Otherwise, as far as the statutory 28 days are concerned, it is an absolute legal right so if you leave mid year you should get an exact proportion of your entitlement.

    Some general information here.....

    https://www.acas.org.uk/checking-holiday-entitlement

    I couldn't quickly find a paragraph on a government site saying just what you want. It is more a case that it has to be an exact proportion as the isn't a rule that says otherwise.

    No doubt an more extensive Google......

    Just to add....

    If you want the money I would be tempted to keep quiet for now and argue about it after you get your final pay, If you make a fuss now they will almost certainly make you take the days as holiday before you leave. (at the least beneficial time to you)!


  • theatretony
    theatretony Posts: 390 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    Thanks @Undervalued that makes sense. I already have a week off before i finish. But that money would be helpful, as i am taking a pay cut for the new job.
    If the world is a stage... I want better lighting!
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Compensation for accrued unused holiday is in 

    The Working Time Regulations 1998


    https://www.legislation.gov.uk/uksi/1998/1833/regulation/14/made

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