Car Allowance & Accrued Holiday

[Tyrant]

Hi All,

I've moved on from a job where I was paid car allowance, a lump sum in addition to my salary to cover car purchase and costs, excluding fuel. I accrued some holiday, which has been paid, however they have not included for the car allowance in that payment. Had I taken the holiday prior to leaving I would have been paid the allowance over that period.

Can anyone advise what should be paid as part of accrued holiday?

Thanks

Edited by Tyrant on Tuesday 21st July 17:16

[Tyrant]

Thanks, had I taken the holiday rather than receive an accrued holiday payment it would have been paid, so particularly unfair not to!

Edited by Tyrant on Wednesday 22 July 15:49

[Tyrant]

Ok, appreciate the input. I called ACAS as to me it seems unreasonable not to pay it. They were of the opinion it should be paid unless the contract specifies that it won't be.

[Tyrant]

jkh112 said:

You were paid for the accrued holiday because you did not take it. Had you taken it you would still have finished on the same date but would not have received the extra holiday money. If this is correct then you did not lose any car money as it was paid until your end date which would have been the same regardless of whether you took the holiday as time or cash.

Had I taken the holiday I would have received car allowance for the period I was not in work (as was the case with earlier holidays taken). Recieving the payment in lieu just deferred taking a holiday from within the notice period to just after (and between jobs). I have lost out by working a sensible handover period by my logic. I should have taken the holiday finishing earlier, subsequently started the new job earlier and been better off by a few hundred quids car allowance.

[Tyrant]

Is there anything specific that could confirm that?
I'll make sure I take the holiday if in that position again

[Tyrant]

Sheepshanks said:

You'd work a bit less but you'd be worse off financially if you'd taken the holiday. The way you've done it now you've got some additional money for unused holiday.

I desperately needed that holiday I took the same amount of time off between jobs, leaving me worse off financially than if I'd taken the leave during my notice period (starting the new job earlier).

[Tyrant]

Countdown said:

Car allowance is calculated based on days worked.

I think that's an important distinction. It's not how it has been calculated in my case, they've used the same pro rata calculation as for salary.

[Tyrant]

Moonhawk said:

Tyrant said:

I'll make sure I take the holiday if in that position again

Why? Surely you are better off financially because you didn't take it.

No... I needed the holiday in time. As I couldn't take it during the notice period I was paid in lieu and took time off between jobs. This left me worse off (by the car allowance payment) than had I had leave in the notice period and started the new job earlier.