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Holiday pay on termination of employment worked example 2


Alex has worked for her employer since 2 February 2015. Her contract of employment stipulates that her normal working hours are 9am to 5pm on a Monday to Friday basis. Alex's annual salary is £26,000 and she 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 her contract provides for the payment of holiday pay to be calculated precisely.

Alex gives her employer notice that her employment will terminate on Monday 8 June 2015, part way through the fifth month of her employment. The employer's leave year is based on the calendar year. Alex is entitled to 28 days annual leave including bank and public holidays and has taken three days' leave during her period of employment.