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Holiday Pay ( can an employer take it away from you )

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tasharidg | 10:41 Fri 07th Nov 2008 | Law
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Can an employer legally refuse to pay any holiday money accrued if the employee resigns and doesn't work their weeks notice , any information would be gratefully appreciated , thanks in advance .
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No, but he can sue you in court for breach of contract.

He could only sue for financial loss - the cost of taking on a temp whilst a permanent replacement is found, for example
Not 100% sure what youre asking here........if youre asking can the employer not pay you in lieu of holidays you havent taken when you resign, then yes they can decide not to pay you for those days by telling you that you are taking the holidays during your notice period (i.e. that the week's notice that youre not working is your holidays). This is quite usual.

If that's not your question then I cant help!
No they can't - it's illegal

Breach of contract by an employee

If you breach your contract, your employer should try to settle the matter with you informally, but they can sue you for damages in the same way you can sue them.

Damages are only awarded for financial loss (for example, if you don't give enough notice, damages might be for the extra cost of hiring temporary staff to do your work, or for lost revenue. You would still have the right to wages you earned before you left, plus pay for untaken statutory holiday).

The most common breaches of contract by an employee are when you quit without giving (or working) proper notice, or when you go to work for a competitor when your contract doesn't allow it.

http://www.direct.gov.uk/en/Employment/Employe es/EmploymentContractsAndConditions/DG_1002752 1

As I said, if they want to recover monies they have to sue the employee
We had a member of staff leave with no notice due to personal circumstances.

She had taken too many holidays for the time she actually worked and did not end up getting any more money paid to her as techinically, as it turned out, she actually owed us money which we wrote off.

Could it be a similar situation here?
I'm not sure what question you are asking either !

Both the employer and the employee are bound by the terms of the contract of employment.

If the employee resigns and does not wish to work their full notice, and the employer agrees to waive their right to the full notice, it's a formal agreement and the employee would only be entitled to payment up to and including their termination date and would not accrue holiday entitlement (or any other benefits) beyond that date.

If the employer does not agree to waive their right to notice, and the employee fails to work it, then they are breaching their contract of employment with their employer. The employer could sue for breach of contract, but realistically and commercially it's not usually worth the trouble and cost involved. Quite often employers will write to the employee threatening to sue for breach of contract but may not proceed with that.

As far as accrued holidays are concerned, the employer could argue that these are offset against the unworked notice period or any other absence that had not been accounted for yet (like sickness absence for example).

Not sure if this answers the question ..... it's a difficult one as I think the ex-employee would struggle to make a case if they have breached their contract of employment.

A reasonable employer would pay them what they were owed, taking account of the unworked notice offset.

If the accrued holiday pay is not paid, then the procedure you have to follow to try and get it is to go through the fromal grievance procedure and then go to an Employment Tribunal.

However, as had already been said, you have breached the employment contract by not working the notice period and the employer would undoubtedly ask the tribunal to take this into account (i.e. the damages for financial loss) in any award. If the tribunal agreed (& a commonsense approach would be for them to do so, but I don't know whether they would legally be allowed to) then the end result would be the same as Mrs Clooney's final para.

So a lot of time and hassle to achieve something which a bit of reasonable commonsense could well avoid. (Of course, if the employer has no costs which could give rise to damages there would be no offset.)

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