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Post Info TOPIC: Employee leaving and owed holiday pay


Guru

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Employee leaving and owed holiday pay
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I have a client who has an employee leaving at the end of this week.

They  have 47 hours holiday due to them, do I pay this all in one week? so their usual wages plus all holiday owed to them?

I imagine they will pay more tax and ni this way? 

I'm not sure of the actual proper way to do this?

 

Thanks

Rachel



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Rachel



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I would always pay any holiday money owed in the final pay

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Regards

Sharon



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Yes, I agree, you should pay all their holiday pay owed as they are leaving.  



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Pauline



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Just out of interest, does holiday pay have to be paid? By this I mean, can an employer insist the employee take the holidays (and so, the last day the employee actually works, would be earlier than their actual leaving date?)

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Expert

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Supposed to be taken nowadays Michelle, but not sure how much it is enforced where an employee requests to be paid in lieu. A big hole in the Working Time regs was that employers didn't have to carry forward any leave un-taken into the next holiday pay year (often December or April). So an employee could, in theory miss out completely.

The 'rolling up' of holiday pay was ruled contrary to Article 7 of the WTD by the ECJ in Robinson-Steele v PD Retail Service. www.bailii.org/eu/cases/EUECJ/2006/C13104.html




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Master Book-keeper

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Doesnt it also depend on their contract of employment, if they have one. I have seen one that says 7 days holidays can be carried forward, others that say use or lose.



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Expert

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Yes, Joanne - depends on contract, company policy etc.

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Master Book-keeper

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Hi
Just seen an interesting email from an employer to an employee stating that they shouldve given 4 weeks notice per the contract they signed. As they didnt give the required notice he has decided to (it looks like) deduct 5 days notice and all of her holiday pay. Indeed the email to her doesnt make much sense but he has changed what he HAD calculated as 136 hours/20 hours holiday pay and tips and reduced it to just 96 hours!! My understanding was with this company they only got the holiday pay in the month that they actually took holidays, there was never any allowance paid for in advance. Ive never seen a contract that states a company can deduct pay for not giving notice - just wondering if any of you had ever come across this sort of thing?



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Expert

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Hi Jo. Have you seen some company policy document that states the employee must give XX amount of notice ?



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Master Book-keeper

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Hi Tim
No, unfortunately not seen the document, have asked!! The email states that if someone has worked more than 3 months they are required to give 4 weeks, the rest have to give a week. The email also states that the 'handbook states monies can be withheld if you do not work such notice'' - Ive never come across the 'withheld' bit before.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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