Employment contract advise

tonysala32

Hi everyone,

I have resigned from my job and am currently working my notice period until the 17th September, I have been told that I will not accrue holiday pay during my notice period,is this correct? I have a holiday entitlement of 25 days per year (of which I have taken 8) that refresh every 1st January.

I below is the section from my contract which speaks about notice period:

The Company will not be obliged to provide you with work at any time after notice of termination shall have been given

by either party and the Company may, in its absolute discretion, pay your salary entitlement in lieu of all or any part of

the unexpired period of notice. Any such payment will consist solely of basic salary as at the date of termination and,

for the avoidance of doubt, the payment in lieu of notice shall not include any element relating to any bonus or

commission payments that might otherwise have been due, any payment in respect of benefits which you would have

been entitled to receive or any payment in respect of any annual leave entitlement that would have accrued during the

period for which payment in lieu is made. You have no right to receive a payment in lieu of notice unless the Company

exercises its discretion under this clause.

If you leave without giving the proper period of notice or leave during your notice period without permission, the

Company shall be entitled as a result of your agreement to the terms of this contract to deduct a day’s pay for each day

not worked during the notice period, provided always that the Company will not deduct a sum in excess of the actual

loss suffered by it as a result of your leaving without notice and any sum so deducted will be in full and final settlement

of the Company’s claim for your breach of contract. This deduction may be made from any final payment of salary

which the Company may be due to make to you. The amount to be deducted is a genuine attempt by the Company to

assess its loss as a result of your leaving without notice. It is not intended to act as a penalty upon termination.

comeandgo

That’s not how I read your contract, only if the company don’t let you work out your notice, they pay you in lieu instead, then no holiday entitlement.

General_Grant

I agree that they are not saying you don't accrue holiday during your notice period.
If they pay you in lieu of notice (PILON) that means your contract is terminated early.
If they simply said you couldn't work your notice but didn't exercise their right to PILON, you would still accrue holiday.

By the way, how many days do you work in a week?  If you work 5 or more then the statutory entitlement is to 28 days.  Or do you get bank holidays (of which there are 8 in a normal year) in addition?

TBagpuss

YEs, as above, if they pay you INSTEAD of you serving your notice, you don't get any holiday pay for the time that you would have accrued, if you had been working.

If someone has told you that you don't accrue holiday they are mistaken, you will be entitled to be paid out any holiday you have accrued but have not taken

tonysala32

Thank you so much, I work 5 days a week I get 25 days (33 with bank holidays). Yes the normal procedure within the company if for the employee to use their remaining holidays within the notice period, but with me they have asked me to stay on and have said they will pay me the holidays but not any that would have been accrued during this notice period. 

tonysala32

So they are paying me what I have accrued up to when I handed in my notice, not up to when I complete my notice. 

Undervalued

tonysala32 said:

So they are paying me what I have accrued up to when I handed in my notice, not up to when I complete my notice. 

You may find special rules apply to the five days over and above statutory depending on your contract, staff handbook etc.

General_Grant

Just looking at the statutory entitlement (as we don't know what the rule may be for the extra company holiday entitlement) I would calculate as follows:

You are working approximately 8.5 months (17th is just beyond half a month)
so pro rata entitlement is 28/12 x 8.5 = 19.83 (say 20 as they can't round down)

You have taken 6 BHs and 8 "ordinary" days as holiday,
leaving balance due of 6 days.

If rules of the extra 5 days don't prevent it,
you would be entitled to 5/12 x 8.5 = 3.5 days in addition.
Some company schemes insist on only full months of service accruing such holiday.  If your scheme is like that, it reduces that element to 3 days.