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Holiday pay on termination of employment worked example 1


Chris has worked for his employer since 14 February 2006. His contract of employment stipulates that his normal working hours are 9am to 5.30pm on a Monday to Friday basis. Chris's annual salary is £20,800 and he is paid monthly on the last working day of the month in 12 equal instalments, irrespective of the work done in the period. A separate clause in his contract provides for the payment of holiday pay to be calculated precisely.

Chris gives his employer notice that his employment will terminate on Tuesday 31 March 2015. The employer's leave year is based on the calendar year. Chris is entitled to 28 days annual leave including bank and public holidays and has taken one day's leave during 2015.