Leaving job with unused holidays

dhokes

I’m planning to leave my current job soon and trying to get my head around unused holidays. I’m not sure if I’m over complicating things but would appreciate it if someone could please sense check this.

Is there any difference, from a personal point of view and from the company’s point of view, between getting paid unused annual leave vs. taking annual leave before you leave a job ?

For example, if I have 30 days holiday for the rest of the full year, and had 18 days remaining prorated and I wanted to finish on 8th October.

A. I could stop working on 16th September, use by 18 days holiday and end my work on 8th October.

B. I could finish my work on 8th October and get paid for the unused 18 days holiday.

C. I could finish my work on 8th October and then take 18 days holidays so I technically finish on 3rd November.

1. Are those 3 scenarios correct?

2. I’m better off financially with B or C over A?

3. There’s no difference from my or my employer’s point of view between B and C?

4. For the unpaid holiday, should I receive my hourly rate * contracted number of hours a day * number of days holiday remaining prorated as a pre-tax amount?

General_Grant

Option C
If you are leaving to begin a new job before the end of that final period, there is definitely a risk for you with C - your employer could cancel any agreed holiday or your contract with them could require you not to work elsewhere while employed by them unless you obtain their agreement.
It does, however, give you the most in terms of financial rewards - you woud be employed for longer and receive compensation accordingly.

Options A and B
Both rely on the employer either agreeing to your holiday and not cancelling it (Option A) or not requiring you to take holiday during your notice period (Option B -).
You would receive more pay with Option B - because you are paid up to the time of termination and then the additional amount for accrued but not taken holiday.  By the same token that means it costs the employer more in paying you.

You are reliant on the views of the employer - the ease of finding a replacement for you and the cost of that person in relation to the costs of employing you.

Thrugelmir

You'll need to have a discussion with your employer. Contractually you are obliged to give suitable notice of taking holday. 

dhokes

General_Grant said:

Option C
If you are leaving to begin a new job before the end of that final period, there is definitely a risk for you with C - your employer could cancel any agreed holiday or your contract with them could require you not to work elsewhere while employed by them unless you obtain their agreement.
It does, however, give you the most in terms of financial rewards - you woud be employed for longer and receive compensation accordingly.

Options A and B
Both rely on the employer either agreeing to your holiday and not cancelling it (Option  A) or not requiring you to take holiday during your notice period (Option .
You would receive more pay with Option B - because you are paid up to the time of termination and then the additional amount for accrued but not taken holiday.  By the same token that means it costs the employer more in paying you.

You are reliant on the views of the employer - the ease of finding a replacement for you and the cost of that person in relation to the costs of employing you.

Thanks. From a purely financial cost to me, are options B and C the same? Originally I thought of doing option B and that would allow me to have a break before starting my new job. However, due to current project requirements, I know my employer wants me to work until the last possible date I can. I'm tempted to do option C now however as that would mean I would be able to exercise my share options.

Also, for one day's unused holiday, how is that typically calculated? I need to use that to work out whether to be paid for the unpaid holiday vs. having the right to exercise my share options.

Andy_L

From an employers PoV if they pay you in lieu then they have you in working to either finish off an jobs and/or handover to a replacement

TELLIT01

I have read your other post re shares etc, but it's an unusual situation where the employer actually seems to be telling an employee that it is up to that employee to decide whether to take holiday or be paid for it.

Thrugelmir

dhokes said:

General_Grant said:

Option C
If you are leaving to begin a new job before the end of that final period, there is definitely a risk for you with C - your employer could cancel any agreed holiday or your contract with them could require you not to work elsewhere while employed by them unless you obtain their agreement.
It does, however, give you the most in terms of financial rewards - you woud be employed for longer and receive compensation accordingly.

Options A and B
Both rely on the employer either agreeing to your holiday and not cancelling it (Option  A) or not requiring you to take holiday during your notice period (Option .
You would receive more pay with Option B - because you are paid up to the time of termination and then the additional amount for accrued but not taken holiday.  By the same token that means it costs the employer more in paying you.

You are reliant on the views of the employer - the ease of finding a replacement for you and the cost of that person in relation to the costs of employing you.

 I'm tempted to do option C now however as that would mean I would be able to exercise my share options.

Book and take some annual leave before handing in your notice. Simplifies matters somewhat.