Calculating Holiday Pay
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Discussion

10 Pence Short

Original Poster:

32,880 posts

246 months

Monday 13th January 2014
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Last week I was summarily dismissed (not for misconduct). As per contract, it was agreed I would be paid 1 month in lieu of notice. This was on the 4th working day of the holiday year (I had 29 days in total per year and hadn't used any).

My question is, is my holiday pay entitlement counted from the 4 days I worked this year before contract was terminated, or does it include the month period of notice (ie. up to 7th February)?

HoHoHo

15,398 posts

279 months

Monday 13th January 2014
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It does, the calculation of pay and any benefits should be to your last paid/working day.

Can I ask how long you've worked there?

10 Pence Short

Original Poster:

32,880 posts

246 months

Tuesday 14th January 2014
quotequote all
So my holiday should be paid up until Feb 7th? Is there a link to any legal basis for this?

I was paid a salary, which is hard written into my contract. From day 1, I was also paid a car allowance of £450 per month as additional salary, though this is not written in the contract. On my payslip it is detailed as car allowance. Am I entitled to this as part of my payment in lieu?

Oh, I had been there for less than 2 years (15 months). I suspect I was fired as I privately supported a colleague who was disciplined for inturrupting a meeting to ask if it was lunchtime. I kid you not.

HoHoHo

15,398 posts

279 months

Tuesday 14th January 2014
quotequote all
10 Pence Short said:
So my holiday should be paid up until Feb 7th? Is there a link to any legal basis for this?

I was paid a salary, which is hard written into my contract. From day 1, I was also paid a car allowance of £450 per month as additional salary, though this is not written in the contract. On my payslip it is detailed as car allowance. Am I entitled to this as part of my payment in lieu?

Oh, I had been there for less than 2 years (15 months). I suspect I was fired as I privately supported a colleague who was disciplined for inturrupting a meeting to ask if it was lunchtime. I kid you not.
As an employer I would do the following based on the fact you are actually an employee up until your last paid day.....

Pay holiday pay pro-rata
Pay any benefits pro-rata

We're talking pennies in the scheme of things.

Having spoken to my wife who looks after this side of the business she's actually not sure legally what's due (and we would take advice from our employment solicitors), but would pay the above to be safe.

Seems a bit of a strange reason for dismissal?

Engineer1

10,486 posts

238 months

Tuesday 14th January 2014
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I suspect that as you lost your job 4 days into the new holiday year you will have earnt 1% of your holiday allowance so about a 1/4 of a day, Contracts usually lay out how holiday is accrued so you and the company know if an employee left owing or being owed holiday.