What you are owed for holiday you accrued but did not take before your last day.
It must be paid in your final packet and cannot be forfeited. If you have taken more than you accrued, it can only be clawed back where your contract says so in writing.
The short version
- It must be paid
- Accrued but untaken statutory holiday is paid on termination. It cannot be forfeited.
- How it accrues
- By the proportion of the leave year you served before leaving.
- Taken too much?
- Only recoverable if your contract says so in writing. Otherwise the deduction is unlawful.
- Notice counts
- Holiday keeps accruing through your notice period, worked or on garden leave.
- Pay at normal rate
- A day should reflect normal pay including regular overtime, not basic alone.
Common questions
Does my employer have to pay for holiday I did not take?
Yes, for statutory leave accrued in the current leave year and untaken by your last day. It must be in your final pay and cannot be forfeited, whatever a policy says about use-it-or-lose-it during employment.
What if I have taken more holiday than I accrued?
Your employer can only deduct it from your final pay if there is an express written term allowing it — regulation 14 of the Working Time Regulations, or a clause in your contract. Without one, the deduction is unlawful even though you did take the leave.
Does holiday build up during my notice period?
Yes, right up to your last day, whether you work the notice or spend it on garden leave. Employers often require you to take leave during notice, which they can do by giving twice as much notice as the leave itself.
How much is a day of holiday pay worth?
It should reflect your normal pay rather than basic pay alone. For at least the first four weeks of leave that includes regular overtime, commission and shift premiums. If your pay varies, it is averaged over the previous 52 paid weeks.
Does contractual holiday above the statutory minimum get paid too?
That depends on your contract. Only the 5.6 statutory weeks must be paid in lieu on termination; anything above it is governed by whatever the contract says, and some schemes expressly exclude it.
What if I am dismissed for gross misconduct?
You are still owed your accrued statutory holiday. It is pay for leave already earned, not a benefit that depends on how the employment ended.
What the terms mean
- Leave year
- The twelve months your entitlement is measured over. Your contract sets it; failing that it runs from the date you started.
- Accrued holiday
- Leave you have built up by working part of the leave year, whether or not you have taken it.
- Payment in lieu
- Money instead of the leave itself. Lawful only on termination — during employment, statutory leave must be taken rather than bought out.
- Overpayment clawback
- Recovering pay for leave taken beyond what was accrued. Requires an express written term under regulation 14.
Guides on this subject
-
How much holiday am I entitled to? UK statutory annual leave explained
Almost every UK worker gets 5.6 weeks of paid holiday, capped at 28 days. How it works part-time, and the…
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Holiday entitlement for irregular hours and part-year workers
If your hours are wholly or mostly variable, holiday accrues at 12.07% of hours worked. How the method works and…
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