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Do you have to "pay back" annual leave if you hand in your notice?

19 replies

Desert76 · 25/02/2022 12:25

Can't find anything about this on work intranet.
Our leave year runs Jan - Dec.
If I use up my whole year's allowance by, say, June, and then leave the company in July, are they likely to deduct it from my pay? Because I only worked 7 months but took leave as though I was working 12?

OP posts:
Coffeeonadrip · 25/02/2022 12:27

Yes 100% because you took leave you haven't yet earned by June.

Coffeeonadrip · 25/02/2022 12:27

It should be in your contract as well.

RubaiyatOfAnyone · 25/02/2022 12:28

Yes, it is fairly standard to take it out of your final wage payment.

DetailMouse · 25/02/2022 12:28

Yes, you'll owe it. Employers will differ as to whether they actually have the systems in place to deduct it.

Nydj · 25/02/2022 12:28

It is only allowed if your contract clearly allows for recovery of overpaid holidays

FunnyInjury · 25/02/2022 12:29

Yes, ime most companies will deduct from final pay. There is usually a clause in the contract for this.

PureBlackVoid · 25/02/2022 12:29

Yes I’ve always had it deducted from my last pay packet

SNUG2022 · 25/02/2022 12:34

Yes, because you haven't accrued it.

MrsMoastyToasty · 25/02/2022 13:10

I had this happen when I was leaving an employer. I was given 2 choices.

  1. Take the hit to my pay packet.
  2. Work the days I owed them, thus extending my notice period.

I took the latter and worked the extra week (through gritted teeth). I wish now that I'd had the nerve to do what a colleague who was leaving the same employer at the same time- taken the 2nd option and then gone off sick.

Viviennemary · 25/02/2022 13:12

Yes you usually would need to pay it back.

ClaudiaWankleman · 25/02/2022 13:14

You only have to pay it back if it is in your employment contract to do so. If it is not, your employer is not allowed to unilaterally claim it back.

Depending on what your job is you might also just be able to negotiate keeping it in exchange for a longer notice period etc.

Desert76 · 25/02/2022 17:44

Thought that would be the case, oh well.
I've already taken this half term off, wanted to take two and a half weeks at Easter and then May half term too for a wedding, but that's nearly my whole year's allowance.
I'll have to budget for the July pay packet being a bit slender then.

OP posts:
underneaththeash · 25/02/2022 22:04

@ClaudiaWankleman

You only have to pay it back if it is in your employment contract to do so. If it is not, your employer is not allowed to unilaterally claim it back.

Depending on what your job is you might also just be able to negotiate keeping it in exchange for a longer notice period etc.

Holiday is one of the exceptions.
FujiIX · 26/02/2022 11:21

Yes you will have to pay it back
Did you work any time in hand?
When I left my last job I had worked 2 weeks in hand so I got that back

NewYearCalavicci · 26/02/2022 11:26

Yes you would need yo pay it back .

But reading your update I would be surprised if your employer allowed you to take more AL than you have accrued if you have already handed your notice in

Desert76 · 26/02/2022 11:32

I haven't handed my notice in. I only need to give a month's notice.
But I know I'm going to be leaving in the summer.

OP posts:
NewYearCalavicci · 26/02/2022 11:42

Ah sorry I misunderstood.

ClaudiaWankleman · 26/02/2022 17:18

Holiday is one of the exceptions

That’s incorrect @underneaththeash

www.citizensadvice.org.uk/work/leaving-a-job/resigning/if-your-employer-says-you-owe-them-money/

dfendyr · 27/02/2022 19:46

think of it logically - what would stop you from joining a company, taking all your annual leave (paid) and then leaving?

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