How holidays affect final pay
Employers must pay for any untaken statutory holiday built up (accrued) by someone when they leave. This is known as payment in lieu.
The person leaving took more holiday than they built up
Employers can deduct money from final pay if both:
- the person has taken more holiday than they built up
- it’s agreed in the contract or in writing in advance
To work out how much holiday has been built up, you can use the holiday entitlement calculator on GOV.UK.
Check if the contract includes more holiday
Some employment contracts include more holiday than the minimum statutory amount. Check the contract for rules around pay for any additional amount.