Car allowance when leaving a company

[BubbaWY]

Good afternoon,

Ive recently changed jobs and had 11 days holiday pay accrued (theyve only paid 5 days, but this is a seperate issue).

I got a £5k a year car allowance. Should I receive this allowance for the 11 days holiday holiday pay Id accured? Or should it only be paid up to the date of leaving.

 

[Paul Kelly ICHYB]

What is the allowance for?

What does your contract say?

 

[BubbaWY]

Nothing in the contract. The only mention was in my offer letter which simply said "car allowance of £5,000 per annum".

 

[BubbaWY]

Thinking about it, its a silly question. Of course it shouldnt be paid for holiday pay.

 

[Ozzy]

Thinking about it, its a silly question. Of course it shouldnt be paid for holiday pay.

I actually think it should, but that is only a gut feeling and one that an employment specialist would be better placed to answer.

 

[DontAsk]

Thinking about it, its a silly question. Of course it shouldnt be paid for holiday pay.

I'm with Ozzy, for the simple fact that if you had taken all of your holiday before you changed jobs, you would have received the car allowance during your holiday periods.

 

[BubbaWY]

I'm with Ozzy, for the simple fact that if you had taken all of your holiday before you changed jobs, you would have received the car allowance during your holiday periods.

Thats how I first viewed it. But then was thinking it was wrong. So now I am just confused

 

[BubbaWY]

Can anyone make any sense out of the following, out of my contract. I am trying to work out how much accrued holiday pay I should have got. It says I am entitled to 30 days paid holiday inclusive of bank holidays. It then says ‘in addition, you are entitled to take the usual public holidays.’ And then there are a further 2 discretionary days holiday, but they are included in the 30 days.

You are entitled to 30 days' paid holiday during each holiday year (inclusive of statutory bank holidays) or the pro rata equivalent if you work part time. In addition, you are entitled to take the usual public holidays in England and Wales. The Company also offers employees a further 2 discretionary days holiday each year. These discretionary days holiday is entirely at the discretion of the Company and may be withdrawn at any time which is included in your 30 days.

 

[Ozzy]

No, I cannot. It appears to be a little messy.
When you start your own business I suggest you have your contracts written more clearly

 

[Newchodge]

I think it is trying to say that your total entitlement is 30 days per year. You are entitled not to work on all the bank holdays, aqs opposed to being required to work some of them. It is however so badly written that a court would struggle to interpret it.

 

[BubbaWY]

Thanks Cyndy. As the HR guru on here, I started for the company on 29th May 2023 and left on 16th Feb 2024. I had taken 9 days of annual leave plus the bank holidays during this period. How much holiday pay in your opinion should I have been paid?

 

[Newchodge]

I would argue your total entitlement as 22.5 days. Wasn't 29 May 2023 a bank holiday?

 

[BubbaWY]

The government calculator tells me 20.2 days entitlement. A colleague is telling me my entitlement was 14 days. I think I need to lie down in a dark room.

 

[Newchodge]

The government calculator tells me 20.2 days entitlement. A colleague is telling me my entitlement was 14 days. I think I need to lie down in a dark room.

You were employed for nearly 75% of the year. 14 days is less than half.

 

[BubbaWY]

I think Ive got it...

30 days holiday for the year. Within the year there were 8 bank holidays which leaves me with 22 days of my own choosing.

I was with the company 8.5 months which pro-rata means my entitlement was 15.58 days. Id taken 9 days, which means I should be due 6.5 days holiday pay.

Does this seem right?

 

[Newchodge]

I think Ive got it...

30 days holiday for the year. Within the year there were 8 bank holidays which leaves me with 22 days of my own choosing.

I was with the company 8.5 months which pro-rata means my entitlement was 15.58 days. Id taken 9 days, which means I should be due 6.5 days holiday pay.

Does this seem right?

No. Your entitlement was not 22 days plus bank holidays, but 30 days including bank holidays. You worked (say) 70% of the year, so 30*70%=21 days entitlement. You took 9 days plus 4 BH (you never answered the bit about your first day being a bank holiday) so you took 13 days, leaving 9. The wording of the contract is important.

The statutory minimum is 5.6 weeks, or 28 days. 70% is 19.6 days, you took 13, leaving 6.6 which must not be rounded down. So 6.5 is less than the statutory entitlement.

 

[BubbaWY]

Sorry Cyndy, the contract start date of my employment was the bank holiday, but I didnt work it and made my start with the company on the Tuesday.

Im still non the wiser though. Ive been paid 5 days holiday pay. Should it be more?

 

[Newchodge]

Sorry Cyndy, the contract start date of my employment was the bank holiday, but I didnt work it and made my start with the company on the Tuesday.

Im still non the wiser though. Ive been paid 5 days holiday pay. Should it be more?

Were you paid for the May Bank Holiday? Or were you paid from 30 May?

Can you let me know how many days you were employed, please. (First day paid for to last day paid for).

 

[BubbaWY]

In my end of June 2023 salary, I got paid for 24 days, which means I was paid from 30th May.

So 30th May 2023 first day and 16th February 2024 last.

185 working days of which 4 were bank holidays. 263 days employed in total.

 

[Newchodge]

In my end of June 2023 salary, I got paid for 24 days, which means I was paid from 30th May.

So 30th May 2023 first day and 16th February 2024 last.

185 working days of which 4 were bank holidays. 263 days employed in total.

263/366= 0.72.
30 days holiday pa *0.72 = 21.6 days' holiday.
Holiday taken 9+4 = 13
Balance due 8.6 days.

Statutory minimum would be 20.16 days' holiday so 7.16 days due.

So, no anything less than 7.16 days is unlawful, anything less than 8.6 is a breach of contract.

 

[BubbaWY]

Thank you very much. Top advice as always.