Holiday Entitlement - unused holiday following resignation

[flip_flop]

Can anybody help me work out how many days holiday pay I am entitled to following resignation please?

My holiday runs from 1st Jan to 31st Dec. I am currently 'in my garden' until my employment officially ends on 24th October. As of 24th October I have 9 days holiday left.

My contract states upon termination I will be entitled to pay in lieu of any holiday calculated on a pro-rata basis which calculation shall be made on the basis that each day of paid holiday is equivalent to 1/233 of salary.

I think I will be owed for four days.

Can anybody confirm please? (am struggling with the maths).

Many thanks.

[factor-fiction]

When you say you have 9 days left, is that what you would have left if you were working (ie earning holidays) for the whole year?

[factor-fiction]

I think we may need more information but please can you tell us how you arrived at a figure of 4 as that may help me understand what you are saying

[flip_flop]

Yes, that is correct.

[flip_flop]

I made a very basic calculation by dividing my annual holiday of 27 days by 12 months and arrived at 2.25 days per month.

[factor-fiction]

I assume you get around 28 days holiday a year. If holidays are based on full weeks then you will have worked 43/52 of a year so will be entitled to 23 days based on the part year.
From your figures you seem to have taken 28-9=19 days.
That means you have 4 left.
But it depends on whether holidays are earned based on worked hours , weeks or full months

[factor-fiction]

Sorry- I started typing that before I saw your figures

[factor-fiction]

May be only 3 days

[flip_flop]

Thanks

[Octavius]

I would say 4 days. Divide your annual salary by 233 then multiply by 4 for the pay equivalent. They may just ask you to leave 4 days earlier.

[factor-fiction]

Probably 4 but could be 3 or 3.5 depending on whether and how they round up or down and whether they count October as a month worked.

[THECORBYLOON]

Although the employer may round up, they will not be able to round down as you would be worse off. As of 24.10.12 you will have been employed for 298 days so you would be entitled to (298/366)x28 days or 22.798 days. As you have had nineteen days' leave already, that leaves 3.798 (call it 3.8) days owing to you.

[factor-fiction]

Is that definitely right, the corbyloon, about rounding of holidays? I know employers musn't round down when calculating statutory minimum holidays but I wasn't aware that there were the rules about rounding where a company's holiday provisions exceed the minimum. I recall there was some debate about rounding up/down of consolidated holiday pay for agency staff and I thought that some do round down.

Anyway, this makes me wonder whether the company will also want to factor in statutory holidays in to the calculation. They may say your annual entitlement is 27+8 (or 9 this year maybe) =35 (or 36), then scale it down based on 42/52 weeks and then deduct out how many days you have taken (maybe 19+7=26).

Also, I think some companies, rightly or wrongly, calculate entitlements based on complete months only, so you may not be given an entitlement for October. Again I know they can't do that when calculating the statutory minimum but I don't think that applies here.

Anyway, your employer should know.

[THECORBYLOON]

From the Buisness Link site

"When your workers leave - even if you have dismissed them without notice for gross misconduct - they must receive pay for any holiday they are entitled to in the current leave year but have not taken.
This entitlement is not subject to a minimum period of employment."

and

"Applying the formula above: 5.6 x (7 ÷ 12) – 2.66 = 0.61 weeks' leave to be paid in lieu. (If you need to, you should round this final figure up to prevent an underpayment.)

The same applies even if the contractual entitlent is more than the statutory figure and if someone did only one or two days' work, they would be entitled still to a franction of annual leave entitlement.

[THECORBYLOON]

Soz, missed out quotation marks at the end of ...underpayment, (in case folk thing the comment following that was also from the Business Link site.)

[factor-fiction]

Thanks.

I was aware of the situation described in the first two paragraphs taken from the Business Links website. Is the third paragraph also taken from there?

[factor-fiction]

Crossed posts.
So do you have a link to support the additional paragraph because I wasn't aware of it and I'd like to update my knowledge in this area if I'm a bit out of touch

[THECORBYLOON]

Factor, from the ACAS leaflet "Holidays and Holiday Pay" I can't paste the extract from the leaflet because it is a pdf doc but it says that no matter how short the period of employment, they are entitled to be paid for the entitlment accrued

[THECORBYLOON]

http://www.google.co....kqjd3d1U63lep_PPZghzQ
Page 5

[THECORBYLOON]

page 8 even...

[factor-fiction]

Thanks- I've read page 8 (and page 5!) and I'm still not sure whether this is still talking about calculating the statutory minimum or whether it's a 'good practice' statement or legal requirement for employers who offer more than the statutory minimum. I suppose it's a minor point of detail that I may never need to know but I'll keep your document for future reference though