Advice Needed: Outstanding Holiday Pay for Deceased Parent

Grumpy_chap

fernio95 said:

Hi everyone,

I’m seeking advice regarding an issue with my late mother’s former employer and their payroll department. My mother sadly passed away in April 2022, and I have been trying to resolve an issue with unpaid holiday pay that should have accrued in 2021 and from January to April 2022.

The employer initially claimed that the holiday pay didn’t need to be paid because she was receiving PHI (permanent health insurance) payments. However, after reviewing employment law, including the Working Time Regulations 1998, I found that:

• Employees on long-term sick leave are entitled to accrue holiday entitlement.
• Case law establishes that holiday pay owed at the time of an employee's death passes to their estate.

I recently sent follow-up emails but have received no response. I’m at a loss as to what to do next.

Could anyone advise on:

1. How I can escalate this issue with the employer to get a resolution?
2. If there is an ombudsman or regulatory body I can approach to make a formal complaint?

I would really appreciate any guidance on how to move forward.

Thank you in advance for your help!

Sorry about your loss.

Just to be sure, if the holiday year runs January to December, your mother may have taken (or forfeited) the annual leave in 2021.
Some companies have a policy that leave must be taken or forfeited by the end of the annual leave year.
While leave can be accrued while absent on sickness grounds, there is no reason for the employer to vary their standing policy with regard to requiring leave to be taken within the annual leave year.
If your mother took, for example, the last five weeks of 2021 as annual leave (rather than PHI), that would have the effect of extending the number of weeks of PHI cover that remain on entering 2022.  Most PHI schemes have some time limit of how many weeks the scheme will pay out, so covering some weeks by using annual leave can help to extend the cover duration.

If the annual leave was taken (or forfeited), that would mean that there is only the annual leave accrued in the first four months of 2022 that may be available to recover.