Holidays and final pay - Final pay when someone leaves a job

Holidays and final pay

An employer must pay their employee 'in lieu' for any untaken statutory holiday entitlement they've accrued when they leave. This means the employer pays the employee holiday pay, instead of them taking the holiday.

If the person leaving took more holiday than they built up

Employers can deduct money from final pay if both:

  • the person has taken more holiday than they built up
  • it's agreed in the contract or in writing beforehand

Check if the contract includes more holiday  

Some employment contracts include more holiday entitlement than the statutory amount. This can be called 'enhanced' or 'contractual' annual leave. Check the contract for rules around pay for any additional amount.

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