Payment for unused holiday on leaving job

Yes, in almost all cases you are entitled to be paid for any statutory holiday you have accrued but not taken by the date your employment ends. This applies whether you resign, are dismissed, are made redundant, or leave by mutual agreement.

Legal basis:

The entitlement comes from the Working Time Regulations 1998, specifically regulation 14. Under this provision, where a worker's employment ends during a leave year, the worker is entitled to a payment in lieu of any accrued but untaken statutory leave. The minimum statutory holiday entitlement is 5.6 weeks per year for a full-time worker, which equates to 28 days including bank holidays.

How the calculation works:

The amount of leave you have accrued is calculated proportionally based on how much of the leave year has passed by your termination date. For example, if you leave halfway through the leave year, you will have accrued half of your annual entitlement. If you have taken less leave than you have accrued by that point, the difference must be paid to you. If you have taken more than you have accrued, your employer may be entitled to deduct the overpayment from your final pay, but only if your contract expressly allows this.

Contractual holiday above the statutory minimum:

Many employers offer more than 28 days. Whether you are paid for unused contractual holiday above the statutory minimum depends on what your contract of employment says. Some contracts exclude payment in lieu for the extra days, so it is worth checking the wording carefully.

Practical points:

1. Check your contract and any staff handbook for the relevant provisions about holiday pay on termination.
2. Work out how much of the leave year has elapsed and how many days you have already taken.
3. If there is a shortfall, raise it with your employer in writing before or shortly after your last day.
4. If your employer refuses to pay, this can be pursued as an unlawful deduction from wages claim in the employment tribunal. The time limit for bringing such a claim is three months less one day from the date of the last deduction, which would usually be the date your final pay was due.

One common issue to watch for is employers requiring you to take your remaining holiday during your notice period. They are entitled to do this, provided they give you notice of at least twice the length of the holiday they are requiring you to take, unless your contract says otherwise.

If you can share any specific details about your situation, such as whether you have a written contract, how much holiday you have left, or whether your employer is refusing to pay, I can give you more targeted guidance.