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Pay in lieu of notice and outstanding holiday allowance

9 replies

AsanteSana · 18/08/2022 19:41

Good evening - I am seeking some advice from HR professionals, please, regarding my current position.

I have, today, after three miserable years working for an employer, (private sector), who is a millionaire probably 50 times over, but is the blueprint for Ebeneezer Scrooge, been offered a new job with an alternative employer, and I am just about to write my letter of resignation to my current employer.

My contract, such as it is, requires me to give a month's notice of termination of employment - in the past, when other staff have left, they are usually gone within a week, often the same day as they hand in their notice. My employer sails close to the wind and only just complies with employment law - no sick pay, legal minimum pension contributions, pays just above National Living Wage and works staff to the point of exhaustion in a physical outdoor role for very long hours. I was even refused compassionate leave when my mum died last year and had to use annual leave, even for the funeral.

I have 20 days annual leave allowance, plus bank holidays, the holiday year running from 1st January to 31st December. I have used 6 days leave, so far, this year.

My questions, bearing in mind my employer's parsimonious character and tendency to be a maverick:

When I hand in my notice tomorrow, assuming I am told to go immediately, which is what I anticipate, without working my notice, is he legally obliged to pay me full salary for my notice period?

Would I be entitled to any holiday pay for outstanding leave allowance and, if so, is it pro rata, based on my accrued unused allowance from 1st January up to tomorrow's date or my full unused allowance of 14 days?

Sorry, this is long - I intended to be succinct, but include all the salient points...and get it all off my chest!

OP posts:
AsanteSana · 18/08/2022 19:43

Thank you, by the way, for any advice or guidance

OP posts:
LIZS · 18/08/2022 19:45

You could be paid in lieu of notice or made to work it. AL will be prorated to your leaving date, although in theory you could take it during your notice.

Flackattack · 18/08/2022 19:48

It would be the AL you have accrued until your leaving date.

topcat2014 · 18/08/2022 19:56

So potentially could exclude August holiday as not the complete month worked, if he pays you to go.

MajorCarolDanvers · 18/08/2022 20:00

You are entitled to be paid for your notice period.

However your employer can require you to use your accrued annual leave during that notice period.

If you think you are not being treated fairly then get on to ACAS who can advise you on rights and also the best way to approach your employer.

MarvelMrs · 18/08/2022 20:03

I believe employers can force you to use your remaining AL entitlement during your notice period. So you would be paid for your notice period but not necessarily your AL entitlement separately.

coldandverytired · 18/08/2022 20:07

Your employer can designate when to take AL but must give you notice of twice the amount of leave they want you to take.

in a rule abiding best practice situation, you would be paid your notice and then your pro-rated bank holidays on top (which must be pro-rated to 5.6 weeks a year regardless of when bank holidays fall as that is the legal minimum holiday allowance)

if they are shady, i’d contact ACAS for advice.

here is the .gov page https://www.gov.uk/holiday-entitlement-rights/booking-time-off-

SavingsThreads · 18/08/2022 20:33

I think it's more likely your employer is making those who resign use their leave, which is why they're not working a month. So I'd anticipate him doing the same to you and therefore only getting paid for 20days post resignation

AsanteSana · 18/08/2022 21:36

Thank you so much to everyone who has responded with advice so far. Much appreciated😄

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