Payment of accrued annual leave on termination of employment

[Katieann_8]

One of my clients has a member of staff that had been suspended for 7 months (accruing holiday) and came back to work 4 months ago. Situation has become untenable and the member of staff has now resigned (still has 27 days holiday owing) - managers have agreed that she can leave early due to the amount of accrued leave (should leave in early March 2022 but intending to leave at end of January). Holiday year is 1st February to 31st January. Can anyone help me with the payments that would be due to her? If she takes the leave does she get paid her monthly salary for Jan, Feb and March plus holiday pay in lieu of notice?

 

[WaveJumper]

Welcome @Katieann_8 to the UKBF hopefully someone with some sound HR knowledge will come along soon to help you out there are several on here. Out of interest has this person resigned with immediate effect or given some form of notice period to be worked.

 

[Newchodge]

You need to establish the basic facts. Did she give notice? How much notice, expiring when? What date did she start working for the employer? How much paid holiday has she received since 1 Feb 2021. What does her contract say about holiday entitlement (exact wording).

 

[Katieann_8]

The lady concerned is a salaried member of staff who started working for the organisation in 2011. Her annual leave entitlement is 35 days but she had 15 days to carry over as at 1st Feb 2021 (suspension started 11th Jan 21 finished on 6th August 21). Has taken 23 days holiday. Contract states that 35 days plus 8 statutory holidays and a maximum of 15 days can be carried over. Notice period is 3 months due to time worked, resignation has been submitted in writing and she has asked to leave early taking accrued leave into account. There is confusion as the correct way to pay her I.e. one final payment in January or a payment each month until March

 

[Newchodge]

The lady concerned is a salaried member of staff who started working for the organisation in 2011. Her annual leave entitlement is 35 days but she had 15 days to carry over as at 1st Feb 2021 (suspension started 11th Jan 21 finished on 6th August 21). Has taken 23 days holiday. Contract states that 35 days plus 8 statutory holidays and a maximum of 15 days can be carried over. Notice period is 3 months due to time worked, resignation has been submitted in writing and she has asked to leave early taking accrued leave into account. There is confusion as the correct way to pay her I.e. one final payment in January or a payment each month until March

How much notice, expiring when?

EDIT: It really is very much easier if you could just answer the questions as asked. They are asked for a reason.

 

[Katieann_8]

How much notice, expiring when?

EDIT: It really is very much easier if you could just answer the questions as asked. They are asked for a reason.

She handed her notice in on 23rd December and her notice period is 3 months - should leave 23rd March

 

[Newchodge]

So she is due to work and to be paid until 23 March. Has she asked to use all her holidays before that date? Her holiday entitlement to end January is 27 days, plus her entitlement from 1 February to 23 March. Is she in work now or did she start taking holiday from 23 December?

 

[Employment Law Clinic]

One of my clients has a member of staff that had been suspended for 7 months (accruing holiday) and came back to work 4 months ago. Situation has become untenable and the member of staff has now resigned (still has 27 days holiday owing) - managers have agreed that she can leave early due to the amount of accrued leave (should leave in early March 2022 but intending to leave at end of January). Holiday year is 1st February to 31st January. Can anyone help me with the payments that would be due to her? If she takes the leave does she get paid her monthly salary for Jan, Feb and March plus holiday pay in lieu of notice?

I don’t see any complication here: there is a lot of annual leave accrued, and a three-month notice period. By agreement, one (annual leave) is being used to offset the other (notice period), all other formalities being put to the side (and by this, I assume if anyone has even bothered to accurately calculate the leave, this is all being disregarded, along with formal notice periods to take the leave – what sounds like an informal agreement has been reached: the leave is taken during the notice period for February & March).



As she’s taking the leave by not being in attendance (but still employed) in February or March, she won’t be paid in lieu of notice or otherwise still keep any accrued holiday pay – effectively the employment continues until early March, but from late January, the employee is on leave; wages should just continue as normal, full salary for January, February, and the pro rata amount for March.



Unless anyone has got actual formal agreements (which would be sensible for all concerned, to know where they stand), there is unlikely to be any remaining leave left to pay at the end of the employment.





Karl Limpert