Holiday Entitlement on leaving a job

[robster234]

Hi,

 

I will shortly be leaving a job that I have resigned from. I was just reading through the contract and noticed the following clause:

 

"On termination of your employment you shall be entitled to be paid in lieu of accrued but untaken holiday save that, where such termination is pursuant to clause 10.1 or follows your resignation in breach of clause 10.3, such accrued but untaken holiday shall be based on your minimum holiday entitlement under the Working Time Regulations 1998 only and not on your entitlement under clauses 11.2 – 11.9. For these purposes any paid holiday that you have taken (including any paid holiday on public holidays) shall be deemed first to be statutory paid holiday. The amount of the payment in lieu shall be calculated on the basis that each day of paid holiday is equal to 1/260 of your salary."

[note:clause 10.1 and 10.2 relate to being sacked or insufficient notice. clause 11.2 to 11.9 relate to the contractual number of holiday days]

 

I would like to know firstly if this clause is legal as it reads to me that I will be getting a payment that is less than my accrued holiday entitlement minus days taken?

 

Secondly if this is legal what can I expect to get in terms of number of holiday days payment?

 

My contractual holiday entitlement is 25 days + statutory bank holidays.

 

I have taken 15 days holiday from my entitlement + 6 days bank holidays up to now. The holiday year runs from Jan 1st.

 

Thanks in advance

[mariefab]

Yes, it's legal. Employers can make any rules they like about additional contractual holidays.

 

How many days untaken holiday you get paid for when you leave depends on...

Whether you will be working right up to the end of the year.

If you have any bank holidays off in this period.

 

If you work 5 days a week the statutory minimum entitlement is 28 days.

[steampowered]

It's an interesting legal point. I can see challenges but on balance it is probably enforceable. There is no automatic right to be paid for accrued but not taken holiday.

 

I have my doubts about whether the provision stating that 'For these purposes any paid holiday that you have taken (including any paid holiday on public holidays) shall be deemed first to be statutory paid holiday' is enforceable. Refer to http://www.legislation.gov.uk/uksi/1998/1833/regulation/17/made

 

The minimum right is to 5.6 weeks' paid holiday a year (including bank holidays)