What's my holiday entitlement leaving part way through the year?

[Connie Powell]

Hello,

I need a little help in calculating my holiday pay in my final pay. I started work in March and was made redundant in June. A total of 4 complete months of work. My previous employer has finally got back to me and I want to sort this out ASAP.

- Started in March
- Made redundant in June
- No holidays were taken
- Holiday runs from January to December
- Holiday entitlement is 20 days plus bank holidays (28 days)

Please can you help me with the calculation I need to do.

Thank you!

 

[Newchodge]

Calculate the number of days you were employed. Divide that figure by 365 to find out what proportion of the year you were employed. Multiply that by 28 to get the number of days holiday.

If that is different to what you received please post the actual wording of your annual leave entitlement clause.

 

[Connie Powell]

Oh wow, thank you!

In terms of leave entitlement clause:

"If your employment starts or finishes partway through the Company's holiday year your holiday entitlement will be calculated on a ‘complete months worked” basis and any fraction of a day produced by such a calculation will be rounded up to the nearest whole day."

"Accrued holiday entitlement will be calculated by taking for each complete calendar month of employment during the calendar year in which your employment ceases one-twelfth of the annual holiday to which you would have been entitled for that year with a fraction of a day being rounded up or down to the nearest half."

Does that change anything?

 

[Newchodge]

Oh wow, thank you!

In terms of leave entitlement clause:

"If your employment starts or finishes partway through the Company's holiday year your holiday entitlement will be calculated on a ‘complete months worked” basis and any fraction of a day produced by such a calculation will be rounded up to the nearest whole day."

"Accrued holiday entitlement will be calculated by taking for each complete calendar month of employment during the calendar year in which your employment ceases one-twelfth of the annual holiday to which you would have been entitled for that year with a fraction of a day being rounded up or down to the nearest half."

Does that change anything?

Yes, it means your employers are ignoring the law. It also means they have contradicted themselves. Calculate it their way and see if it makes any difference. My way there is no entitlement to rounding up.

 

[Connie Powell]

What a nightmare. Thank you for helping me with this. I've got the calculation and figure now. Very much appreciated.

 

[UKSBD]

What a nightmare. Thank you for helping me with this. I've got the calculation and figure now. Very much appreciated.

Why are you having to do the calculation?
Or is it a case that they did it but you don't agree with what they said?

 

[Newchodge]

Oh wow, thank you!

In terms of leave entitlement clause:

"If your employment starts or finishes partway through the Company's holiday year your holiday entitlement will be calculated on a ‘complete months worked” basis and any fraction of a day produced by such a calculation will be rounded up to the nearest whole day."

"Accrued holiday entitlement will be calculated by taking for each complete calendar month of employment during the calendar year in which your employment ceases one-twelfth of the annual holiday to which you would have been entitled for that year with a fraction of a day being rounded up or down to the nearest half."

Does that change anything?

Have you got the exact wording that explains how much holiday you are entitled to in a full year?

 

[Connie Powell]

Have you got the exact wording that explains how much holiday you are entitled to in a full year?

It says:

"You are entitled to a basic annual holiday entitlement of 20 days' paid holiday in each year in addition to the usual public holidays in England. Holiday entitlement for employee’s who work on a part-time basis will be calculated on a pro-rata basis. If your employment starts or finishes partway through the Company's holiday year your holiday entitlement will be calculated on a ‘complete months worked” basis and any fraction of a day produced by such a calculation will be rounded up to the nearest whole day."

 

[Connie Powell]

Why are you having to do the calculation?
Or is it a case that they did it but you don't agree with what they said?

They sent my final salary, which as they said, includes my holiday allowance, but the figure didn't look quite right.

 

[Newchodge]

It says:

"You are entitled to a basic annual holiday entitlement of 20 days' paid holiday in each year in addition to the usual public holidays in England. Holiday entitlement for employee’s who work on a part-time basis will be calculated on a pro-rata basis. If your employment starts or finishes partway through the Company's holiday year your holiday entitlement will be calculated on a ‘complete months worked” basis and any fraction of a day produced by such a calculation will be rounded up to the nearest whole day."

OK, that makes it more complicated. You are contractually entitled to the 4 bank holidays that fell during your employment, plus the complete months calculation They outline in your contract.

That means that you have to compare their way of calculating with the statutory way, and see how they compare. If you are on a salary and the organisation closed on the bank holidays, and you got paid properly, just ignore the bank holidays and compare what they are offering with % of year *20 days.

If you don't mind, what are they offering?

 

[Bob Morgan]

I do wish that Employers would move away from an 'Annual Leave Year!' Employees should have leave accrued and taken according to their Engagement Anniversary!

 

[Newchodge]

I do wish that Employers would move away from an 'Annual Leave Year!' Employees should have leave accrued and taken according to their Engagement Anniversary!

It is something I have argued for since year dot. The advantages are enormous - no fiddly calculations in the first year; no cliff edge by which date everyone has to take their leave, resulting in an unacceptable level of leave taken in the final month;no worries about when Easter falls if the company leave year starts on 1 April. The only advantage is that the employer can 'keep track'! Obviously catering for disorganised employers outweighs everything else.

 

[antropy]

They sent my final salary, which as they said, includes my holiday allowance, but the figure didn't look quite right.

110% go back to them and highlight why the figure is incorrect! Alex

 

[Connie Powell]

Hi guys.

It's been months of back and forth emails, however, my former employer has finally agreed to pay my accrued holiday allowance. I am very happy about this as it's been a very painful process for me. As a result, I will make sure I use ACAS as this has dragged out far too long.

Another part of my pay dispute was my first month's wage back in March 2020. It was about £500 short of my usual monthly pay.

My former employer's statement back to me recently was: "our salary month runs from the 21st of the month to the 20th of the following month".

He concluded that my employment commenced on the 3rd March, hence my pay is calculated from the 3rd March 2020 to the 20th March 2020, consisting of 14 working days.

Is this correct?

At first glance, it seems like I worked a whole month (from the 3rd March) for less pay. I looked in my contract to find the salary month dates, however, I couldn't find those dates. I just wanted some advice on this before sending my last email to my former employer.

Thank you!

 

[Newchodge]

That is correct, provided your last salary was based on ending 20th of the month.

 

[antropy]

Is this correct?

There are some good salary calculators on the HMRC website, have a look at those.

Paul.