Holiday entitlement

[MrsBling]

If an employee has only worked for 5 days before resigning, do we have to pay holiday pay or can I state in the handbook that "holiday entitlement will not accrue for the first month of employment with the company".

[kempie]

That sounds illegal to me...

The entitlement to paid annual leave, including the right to compensation payments for untaken leave when you leave your job, begins on the first day of employment.

However, the employer can optionally use an accrual system whereby during the first year of employment the proportion of the leave which may actually be taken (with the employer's agreement) builds up over the year. The amount of leave which may be taken builds up monthly in advance at the rate of one-twelfth of the annual entitlement each month.

Where this calculation does not result in an exact number of days, the amount of leave which may be taken is rounded up to the next half day. Any rounded-up element is deducted from the leave remaining.

At the end of a period of employment a worker will be able to claim for payment in lieu for any leave outstanding, calculated on a pro rata basis from the first day of the leave year or employment to the last day of employment, irrespective of how long that period may be in the current leave year. In this instance, leave is not rounded up to the nearest half day, but is paid on the actual amount due. For example, if a worker had accrued 2.66 days, then they would be paid for 2.66 days and not three days.

http://www.dti.gov.uk/employment/employment-le gislation/employment-guidance/page28979.html#p aid_annual

[KenR]

Where I work (central government) it is accrued over the first year on, as kempie says, a monthly basis for fixed term and casual staff. However, this accrual is only on whole months worked and not partial ones. I switched from a fixed term contract to permanent one around three days short of a whole month losing the 2.something days for that last month on fixed term.

[MrsBling]

Thank you Kempie and KenR. I am aware that the right holiday entitlement commences on the first day of employment, but I wasn't sure whether you could wait to accrue for the whole month. It is a good idea and I will probably implement this in the company handbook.

[cascarelli]

Without looking it up I'd say that it would be fair to state that they couldn't take leave in the first month of employment but I think you would have to pay them pro rata if they resigned within that time.

If they resigned in the first week (and therefore with a weeks notice) they would only probably be owed a day anyway? I wouldnt have thought it was worth the while trying to implement it