When leaving a company, your holiday entitlement must be accounted for. Here's a clear guide to help you understand what happens to your unused holiday leave:
1. Check Your Contract
Your employment contract which will outline the specific details about holiday entitlement and what happens when you leave. Most employee will be on Accrual which means that you need to work X to receive Y
2. Calculate Your Holiday Entitlement
- Full-Year Entitlement: You are entitled to a set number of holiday days per year, usually based on a “leave year” (e.g., April to March).
- Pro-Rata Entitlement: If you leave partway through the leave year, your holiday allowance is calculated on a pro-rata basis for the time you’ve worked.
Example:
If you’re entitled to 28 days of holiday per year and leave after six months, your entitlement is 14 days (half of the annual allowance).
3. Unused Holiday: Do You Get Paid?
If you haven’t taken all your accrued holiday before leaving:
- Citrus will pay you for unused holiday as part of your final paycheck. This is called holiday pay.
Example Calculation:
If you are entitled to 14 days and have only taken 10, you’ll be paid for the remaining 4 days.
4. Overused Holiday: Do You Owe the Company?
If you’ve taken more holiday than you’ve accrued:
- The company may deduct the excess holiday pay from your final pay check.
- This includes all deductions like leaving with no notice chargeds
5. When Should You Take Holiday Before Leaving?
If your employer agrees, you may be able to:
- Use up your remaining holiday during your notice period instead of being paid for it.
- Request this early, as operational needs may limit approval. This is not Guaranteed
6. Bank Holiday Considerations
Bank holidays Are be included in your holiday allowance. Ensure you account for these when calculating your entitlement.