Notice Period and Annual Leave

[HannaMM]

Good evening!
I was wondering if there is anyone here from HR that can help or that have had experience on this subject.
I’ve given my notice in my company which is 2 months. I have 20 days holiday so I suggested to reduce my notice to 1 month so I can start with my new employer earlier. I said I’m happy to lose my holidays and don’t get paid for it. They said that’s not possible and that my contract will end in 2 months, and I can take my 4 weeks holidays at the end (and get paid) while under their contract.
Does anyone know if I can start with my new company while on anual leave in my current one and for 4 weeks?

Pretty sure your new company will need your P45 which won't be released until your current employment finishes.

It's likely your contract will have a clause restricting you from working for another employer (usually under something like giving your full attention/efforts to your job and seeking permission before taking any other employment).

Also believe that as you will be employed by two companies at the same time you will not be able to do this.

It would depend what's in your contract and/ or your employer's policy on working for 2nd employers whilst employed by your organisation is.

It would also depend on what the new employer's contract / policy is too as you would essentially be employed by 2 different organisations at the same time.

Doesn’t sound like they’re going to let you take annual leave during your notice period anyway so it doesn’t matter. Sounds like they want you to work the two months then they’ll pay out your holiday when you leave.

You could do, if your old employers allows it but, you’ll have to complete a P46 and declare you still have a second income, depending on your earning you’ll be taxed as BR or D0 which is being taxed at source and a complete pita to sort out and not worth the hassle

As long as the companies don't mind, you absolutely CAN be employed by both at the same time. No issue with the 4 wk overlap.
Yes the new company may ask for your p45, but if you don't give it to them straightaway they will just put you on an emergency tax code until you provide them with one. Not an issue, and the tax will get sorted during the course of the year.

They can't enforce an extra notice period just because you have holiday owed. They would need to pay your holiday in your last pay packet, you wouldn't be under contract still. It's a statutory requirement too, rather than being guidance.

www.gov.uk/holiday-entitlement-rights/taking-holiday-before-leaving-a-job#:~:text=Getting%20paid%20instead%20of%20taking,is%20dismissed%20for%20gross%20misconduct.

Thank you for your response. I have 2 months notice but I have 4 weeks holiday to take so they want me to work for a month, then take holiday for the second month of my notice. My suggestion to them was to finish my job in a month, lose my holidays, and start my new job a month earlier, but they don’t accept to reduce my notice period with my holiday :(

You can’t “lose” your holiday, so what you’d be asking is for them to release you from your contract and end your employment month early, and pay you in lieu of outstanding holiday.

If they don’t want to do that they don’t have to. As to whether you have any restrictions on working elsewhere while you’re still employed, you’d need to check your contract.

@HannaMM

Thank you for your response. I have 2 months notice but I have 4 weeks holiday to take so they want me to work for a month, then take holiday for the second month of my notice. My suggestion to them was to finish my job in a month, lose my holidays, and start my new job a month earlier, but they don’t accept to reduce my notice period with my holiday :(

If they have agreed to you taking the leave, it is bizarre that they wouldn’t prefer to terminate early. Is there any reason they wouldn’t want a short gap between the two jobs?

Only pay attention to Flowery's post - she knows her stuff, there is all sorts of nonsense on the other posts

If they are insisting you are employed for 2 months (regardless if you are in annual leave or not, you are still employed), then in theory you would probably need permission from them to work elsewhere IF IT IS IN YOUR CONTRACT. If there is no mention in your contract about working elsewhere / second jobs then I think it’s free game.
There could also be other wording like ‘you must devote 100% of your time to the company’ which would suggest you can’t work elsewhere too.
It’s a bit mean of them to not let you go after a month especially as you would be in annual leave for the second month. Maybe go back and ask again for whats called a ‘payment in lieu of notice’. Maybe they just don’t know how to ‘administer’ you leaving early.
If they still refuse then they are being unreasonable. But not a lot you can do.
But do check your contract regarding working elsewhere.