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
Use the GOV.UK calculator to work out how much holiday has been built up.
Someone’s entitled to more than the statutory amount
Check if the contract includes extra holiday entitlement (more than the legal minimum). If it does, check what it says about final pay for the additional amount.