Calculate your leaving employee's holiday entitlement
Employee leaving your organisation? Calculate how much annual leave they have accrued and must be paid out when they leave.
I have an employee leaving
When an employee or worker leaves your organisation, under Regulation 14 Working Time Regulations 1998, they are entitled to be paid any accrued but untaken leave.
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What is accrued leave?
- Outside the first year of employment, an employee can conceptually take all their leave on the first day of the leave year. However, there is a notional accrual to deal with a worker who, on the date of leaving, has taken more leave than they have accrued or, in this case, taken less leave than accrued.
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How does accrual of holiday work?
- Holiday under the Working Time Regulations - that is the 28 days entitlement - accrues under a specific methodology when looking at an employee leaving. Under Regulation 14(3), it is calculated as the entitlement multiplied by the percentage of the leave year elapsed, less any days taken.
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What happens for additional leave above the 28 days annual leave?
- This would be a contractual matter. As we explain in our Ultimate Guide to UK Statutory Holiday Allowance, there are three types of leave: EU, UK and contractual. Only the EU and UK leave is required to be paid on termination under the Working Time Regulations. You should review your contracts and holiday pay policy to determine what obligations you have in relation to contractual leave.
Frequently Asked Questions about Holiday Entitlement for Employees Leaving their Jobs
- What is holiday pay when leaving?
- Holiday pay when leaving refers to the right of an employee under Regulation 14 of the Working Time Regulations 1998 to be paid in lieu for any accrued but untaken holiday pay to which they are entitled under the WTR 1998.
- How is holiday pay calculated for employees leaving mid-year?
- The Working Time Regulations provide a method for calculating the holiday which should be paid out when an employee is leaving. That calculation is the entitlement of the employee multiplied by the percentage of the leave year elapsed, less any holiday taken.
- Does this include all leave to which an employee is entitled?
- No. This only relates to leave entitlement under the Working Time Regulations 1998 and not any additional contractual leave. Our Ultimate Guide to UK Statutory Holiday Allowance details the difference between EU, UK and contractual leave and the importance of having a policy that deals with how this leave is apportioned and taken.
- What information do I need to use the calculator?
- You will need the start date of your current leave year, the date on which the employee is leaving, their holiday entitlement and how much leave they have taken in the current leave year.
- Is this calculator compliant with UK employment law?
- Absolutely! This calculator implements the methodology set out at Regulation 14 Working Time Regulations 1998.
- What if the employee has taken more holiday than they are entitled to?
- The calculator will show a negative result if the employee has taken more leave than they are entitled to. Depending on your company policy, you might be able to make a deduction from their final pay to account for this.
- Can this calculator be used for part-time employees?
- Yes! The calculator works irrespective of whether or not the employee is full-time, part-time or zero-hours. All you need is their entitlement, how many days they have used already, their leaving date and the starting date of your leave year.
- How do I know what leave entitlement an employee has?
- You can use our Holiday Entitlement Calculator to calculate holiday entitlements for new employees joining your organisation.
Leave Entitlement Information At Your Fingertips
With Leavetrack, you always have your employees' leave entitlements at hand. If someone is leaving, you can easily remain compliant with UK law.
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Monitor holiday entitlement accruals
- Leavetrack notifies your managers if an employee's request will exceed the amount of holiday they have accrued.
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Holiday entitlement policies
- Customise leave policies for all your locations so all your employees receive the correct entitlements.
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Who's off at the same time
- Just in case your employee does want to take all 28 days in one go - you can see straightaway who else is booked off at the same time.
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Check whilst on the go
- Beautifully designed and responsive application that works just as well on mobile as it does on desktop.
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