How do you calculate payment for unused annual leave days?

What is the correct way to calculate the value of unused annual leave to pay to an employee?

20 days statutory annual leave
8 days to be paid
€600 gross pay per week = €31,200 annual gross pay

is it 8 days X €31,200/365 days = €684 gross payment

or

8 days X €31,200/260 days = €960 ?


[broken link removed]

€600 per 5 day week = €120 per day

€120 x 8 = €960

I presume that the employment is being terminated as otherwise it is illegal to pay an employee in lieu of minimum statutory holiday entitlement

DB74 said:

I presume that the employment is being terminated as otherwise it is illegal to pay an employee in lieu of minimum statutory holiday entitlement

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No, employment is not being terminated. Employee always takes payment every year instead of some annual leave, just wondering is the employee being shortchanged.

It would be based on 260 days (for a full time employee).

Just make sure you don't go under the statutory entitlements , as that would be illegal.