Calculate exactly how much holiday pay you are entitled to when leaving a job, including all accrued but untaken annual leave.
Calculate Your Holiday Pay on Leaving
Frequently Asked Questions
Yes. You are legally entitled to payment for all accrued but untaken holiday on termination of employment, regardless of the reason for leaving.
Calculate pro-rata entitlement for the holiday year (annual entitlement × months worked ÷ 12), subtract days already taken, then multiply remaining days by your daily pay rate.
Only if your contract contains a specific clause allowing this. Without a contractual provision, deducting unearned holiday pay is an unlawful deduction from wages.
Holiday pay must be included in your final payslip on or before your leaving date. Withholding it is unlawful and can be claimed at Employment Tribunal.
Yes. Holiday pay on leaving applies whether you resign, are made redundant, or are dismissed. The entitlement does not depend on the reason for leaving.
You can submit an ACAS early conciliation claim and if unresolved, an Employment Tribunal claim for unlawful deduction from wages within 3 months.
PILON does not replace holiday pay. If your employer pays PILON, holiday pay for any accrued untaken leave is also owed on top.
Daily rate = Annual salary ÷ 260 working days. For workers with variable pay, it is the average weekly earnings over the last 52 weeks divided by days worked per week.
Yes. Holiday continues to accrue during your notice period. If you work your notice, any accrued untaken holiday during notice should be paid.
Pro-rate the full-year entitlement to days worked per week, then pro-rate again for months worked in the holiday year, and deduct days taken.
Only if your employer expressly requires you to take holiday during garden leave and gives the correct notice (twice the holiday period). Without this, garden leave cannot be counted as holiday.
Yes. Holiday pay in your final wages is subject to income tax and National Insurance in the normal way.