Holiday pay on dismissal

On termination of employment, a worker is entitled to receive a payment for any stautory holiday s/he has accrued in the leave year, but has not taken.

 

Example

An employee who leaves 6 months after the start of the holiday year is entitled to a payment for 2.8 weeks holiday, less any holiday they have already taken.

 

If an employee leaves part way through a leave year and has taken more holiday than they have accrued during the year, there is no requirement under the Regulations that they repay the excess holiday unless there is a ‘relevant agreement’, for example, the worker’s contract or workforce agreement, requiring this to be done.

 

It will be an unlawful deduction if the employer deducts the excess from the worker’s wages without such an agreement.

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Zero increases by 26%

The Office for National Statistics has released new figures that show nearly 700,000 people work on zero hours contracts - up 26% from last year.  The problems caused by these contracts will require a significant change in the law.

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