Redundancy - Holiday Entitlement Calculations

burmo · 10 Jun 2013

Hi,

I have a question about holiday entitlements during a redundancy situation. The company annual year runs January to December.

For a person finishing at the end of October, based on the 19(a) below they would have easily worked the 1365 hours to get the full statuatory holiday entitlement. But how does the part in bold affect this calculation?

The appropriate sections of the law are reference below:

19.—(1) Subject to the First Schedule (which contains transitional provisions in respect of the leave years 1996 to 1998), an employee shall be entitled to paid annual leave (in this Act referred to as “annual leave”) equal to—
(a) 4 working weeks in a leave year in which he or she works at least 1,365 hours (unless it is a leave year in which he or she changes employment),
(b) one-third of a working week for each month in the leave year in which he or she works at least 117 hours, or
(c) 8 per cent. of the hours he or she works in a leave year (but subject to a maximum of 4 working weeks):

What if the employer’s leave year is January to December?
While the statutory leave year is 1st April to 31st March, there is no
restriction on employers using different 12 month periods provided that
the same leave year is used consistently.

Nutso · 10 Jun 2013

Your holiday entitlement is calculated pro rata if you finish before the year end (or commence mid way through the year). So someone finishing at the end of October would be entitled to 10/12 of the annual leave specified in their contract. The fact that it is a redundancy will not affect this.

Redundancy - Holiday Entitlement Calculations

burmo

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Nutso

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Redundancy - Holiday Entitlement Calculations

burmo

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Nutso

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