Holiday pay on departure

[Alexei]

Carrying on from the other thread, rather than hijack that one, I thought I'd best post a new one to deal with my colleague.

They are handing their notice in imminently and are a bit confused about their leave as they purchase an extra two weeks, and may have carried some forward from last year, as well as having lieu days and leave credited back while being on sick.

They were unable to use up all their leave as there was no space available and are worried they will lose what they have accrued. I'm not exactly sure how to interpret the data on the RM People app, so would appreciate guidance:

Valid until: 31 March 2021
Available: 52.66 hours
Planned: 31.3 hours (they have a weeks annual leave due before 31 March, so I'm guessing this is what it's referring too)
Used: 87.64
Entitlement: 171.6

So my interpretation of the data would suggest my colleague will be due 83.96 hours (available + planned)( ), as they plan to leave before taking that upcoming week. I'm also assuming any lieu days are automatically added to entitlement in hours.

Am I reading this correctly?

[Woody Guthrie]

Your figures are correct but they may be forced to use some annual leave as part of their notice period.

[Alexei]

Your figures are correct but they may be forced to use some annual leave as part of their notice period.

Why so? I don't think they would mind to be honest, just don't want the management trying to be awkward and rather know what is due

[97gaz]

Couple of important points here. You cannot buy up two weeks leave. The minimum leave entitlement for new starters is 22.5 days and the maximum you can buy up to is 30 days. So the max you can buy is 7.5 days. That goes down with longer service.

Don't forget that POAL is paid weekly so if he goes now then he won't be entitled to what he thought he bought as he won't be around to finish paying for it.

[Alexei]

Don't forget that POAL is paid weekly so if he goes now then he won't be entitled to what he thought he bought as he won't be around to finish paying for it.

Presumably they would be refunded everything they have already paid towards POAL, so everything from the start of financial year to final pay. I'm not sure how it works but that would make the most sense to me. Of course things in RM often work different from what is thought simple.

[97gaz]

Presumably they would be refunded everything they have already paid towards POAL, so everything from the start of financial year to final pay. I'm not sure how it works but that would make the most sense to me. Of course things in RM often work different from what is thought simple.

It's more complicated than that. He won't have what you think but it won't be far away. Looking at his App data, he's probably on about a 28.5 hour contract and has already taken 3 weeks leave. If he resigns today he will only be entitled to 11/12 of his original leave so if he's got less than 5 years service he'll be entitled to 22.5 x 11/12 which is 20.5 days. He'll also only be entitled to 11/12 of his bought up leave so that's 7.5 x 11/12 =6.9 days.

So his yearly entitlement up to date will be 20.5+6.9= 27.4 days entitlement. He's already took fifteen days so he'll be due 27.4-15 already taken so that's 12.4 days. If he's 28.5 hour contract that's 12.4 days x 5.7 hours days =70.6 hours he's owed.

They may do it the other way and refund him the 6.9 days he's already paid POAL but then his entitlement drops to 20.5 days. He's already taken 15 so if they do it this way then he will get 5.5+6.9 which also equals 12.4 days he's owed.

I would say anywhere around the 70hr mark would be about right.

My post might not take carry over into consideration as I'm only guessing his service length and contract hours

[Alexei]

It's more complicated than that. He won't have what you think but it won't be far away. Looking at his App data, he's probably on about a 28.5 hour contract and has already taken 3 weeks leave. If he resigns today he will only be entitled to 11/12 of his original leave so if he's got less than 5 years service he'll be entitled to 22.5 x 11/12 which is 20.5 days. He'll also only be entitled to 11/12 of his bought up leave so that's 7.5 x 11/12 =6.9 days.

So his yearly entitlement up to date will be 20.5+6.9= 27.4 days entitlement. He's already took fifteen days so he'll be due 27.4-15 already taken so that's 12.4 days. If he's 28.5 hour contract that's 12.4 days x 5.7 hours days =70.6 hours he's owed.

They may do it the other way and refund him the 6.9 days he's already paid POAL but then his entitlement drops to 20.5 days. He's already taken 15 so if they do it this way then he will get 5.5+6.9 which also equals 12.4 days he's owed.

I would say anywhere around the 70hr mark would be about right.

My post might not take carry over into consideration as I'm only guessing his service length and contract hours

They are FT and weekly paid. Think there was some carryover and lieu days also but understand the brunt of what you're saying.

If leaving this week, they will receive : [ (48/52) * FT entitlement ] + [ (48/52) * POAL ] ... The "48/52" is because they will have worked 48 weeks of the financial year before leaving.

[97gaz]

They are FT and weekly paid. Think there was some carryover and lieu days also but understand the brunt of what you're saying.

If leaving this week, they will receive : [ (48/52) * FT entitlement ] + [ (48/52) * POAL ] ... The "48/52" is because they will have worked 48 weeks of the financial year before leaving.

The App data you showed wasn't for him then?

[Alexei]

The App data you showed wasn't for him then?

The app data in the first post has been altered to remain anonymous

[97gaz]

The App data you showed wasn't for him then?

The app data in the first post has been altered to remain anonymous

How the hell would we identify him if the data was correct.FFS.

[Alexei]

How the hell would we identify him if the data was correct.FFS.

Why is the correct data relevant? You've explained the calculation which is fine. We now have a formula for calculating how much holiday pay one is entitled to on resignation, so thank you. Teach a man to fish

It has been well established that managers frequent this forum, so it would be irresponsible of me to use the original data and risk a manager identifying myself or any colleagues through my post history. The altering of data is to protect the anonymity of who I am and where I work, a practice all members of this site should exhibit.

This is actually my second account on this website as my first was compromised in similar circumstances.

[97gaz]

Why is the correct data relevant?

Because you asked for help in calculating what your colleague was entitled to. I spent some of my time trying to help you and It was wasted time.

TBH I would just ask the gaffer to give him a PSP leave sheet. He'll then know what he's due to the penny.

[Alexei]

My friend hasn't received their holiday pay yet. How long does this process usually take, is it the manager that's holding the process up? I don't know if I'm amazed or unsurprised that this isn't all an automatic process which is triggered once HR know the employee is resigning. They're quick to stop the wages but money owed is another matter!

My friend has a really fractious relationship with the managers and doesn't wish to contact them, it was a contributing factor to the resignation. They even feel this payment delay is personal. I've suggested dropping the manager a text to remind them, and possibly contacting HR to find out what is going on, dropping a subtle hint of legal action for withholding of wages.

Yes/no ?