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Holiday pay calculation

edited 3 December 2020 at 8:28AM in Redundancy & Redundancy Planning
6 replies 212 views
Thomas_HoldingThomas_Holding Forumite
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edited 3 December 2020 at 8:28AM in Redundancy & Redundancy Planning
I am being made redundant and given pay in lieu of holiday.
How do I work out if they have calculated the correct amount.
These are not my real figures but for sake of discussion.
My gross salary was £1K per month.  Five months ago I got 1.06 % pay rise.  I have 25 days holiday a year and they owe me 14 days.  My holiday year ends end of December and it is a calendar year.
I think they should pay me  £12720/(number of day I work a year 236)*14
£754
However I am not sure if this is correct.  I have searched on line but I can't find anything useful

Replies

  • getmore4lessgetmore4less Forumite
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    Do you work shift or is that 25+BH. as stat minimum is 28 days?

    Holiday is accrued prorata for the year and they don't have to include the PILON period.
    Holiday pay is based on a weeks pay for a 5 day worker 14 days would be 2.8 weeks
    the legislation is
    https://www.legislation.gov.uk/uksi/1998/1833/regulation/14
    https://www.legislation.gov.uk/uksi/1998/1833/regulation/16

    it changed this year so the weeks pay is averaged over 52 weeks

  • Thomas_HoldingThomas_Holding Forumite
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    Do you work shift or is that 25+BH. as stat minimum is 28 days?

    Holiday is accrued prorata for the year and they don't have to include the PILON period.
    Holiday pay is based on a weeks pay for a 5 day worker 14 days would be 2.8 weeks
    the legislation is
    https://www.legislation.gov.uk/uksi/1998/1833/regulation/14
    https://www.legislation.gov.uk/uksi/1998/1833/regulation/16

    it changed this year so the weeks pay is averaged over 52 weeks

    Thanks for that.  I don't work shift just Monday to Friday.
    To make life easier I am leaving at the end of the holiday pay period.
    How do they calculate a weeks pay?  Is it my gross salary divided by 52 or 52- number of weeks I have off a year?
  • getmore4lessgetmore4less Forumite
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    If on fixed pay then the last 52 weeks divided by 52 should work, many would/still just use current pay which for you works out better as it is higher.

    Some places have other calculations and work on a days pay using various methods like working days or calendar days often resulting in lower payments.

    Do you get BH on top of the 25?

  • Thomas_HoldingThomas_Holding Forumite
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    If on fixed pay then the last 52 weeks divided by 52 should work, many would/still just use current pay which for you works out better as it is higher.

    Some places have other calculations and work on a days pay using various methods like working days or calendar days often resulting in lower payments.

    Do you get BH on top of the 25?

    Thanks I don't work bank holidays which is how I calculated the number of days.  Do you think that my sums are correct?
  • General_GrantGeneral_Grant Forumite
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    If on fixed pay then the last 52 weeks divided by 52 should work, many would/still just use current pay which for you works out better as it is higher.

    Some places have other calculations and work on a days pay using various methods like working days or calendar days often resulting in lower payments.

    Do you get BH on top of the 25?

    Thanks I don't work bank holidays which is how I calculated the number of days.  Do you think that my sums are correct?
    You are not entirely clear about your holiday entitlement.  If you don't work bank holidays and are in England or Wales then that's 8 days holiday.  Are those 8 included in your calculation of 25 days holiday or in addition (so that your actual holiday entitlement is 33 days)?
  • ThrugelmirThrugelmir Forumite
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    On what date are you leaving the Company? Are you being asked to take annnual leave over Xmas? 
    “Far from seamlessly assimilating new ideas into our existing belief framework, research shows that we actually tend to get more firm in our cherished beliefs when those beliefs become challenged.”
    ― Daniel Crosby
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