Ruling On Pay Calculation For Untaken Holiday
From time to time we find ourselves disputing an employer’s calculation of pay for accrued but untaken holiday when a member leaves employment. Despite the decision in Leisure Leagues UK Ltd v Macconnachie (2002) IRLR 600, some colleges still insist on calculating a day’s pay by taking annual salary and dividing by 365.
However, now a recent ruling by the Employment Appeals Tribunal (EAT), Yarrow v Edwards Chartered Accountants, has confirmed the decision in the above case. The judge ruled in favour of Mr. Yarrow saying that his holiday pay should be calculated according to working days and not the calendar year. The judge also said that holiday entitlement should be rounded up to the nearest whole day.
Members leaving their college are advised to check calculations and contact ACM if they are being short-changed.
Wednesday, 28 November 2007 at 11:00 pm
Does the same principle now apply to calculations of part months at the beginning or end of a period of employment, i.e. where the start is not the first of the month, or the end is not the last day of the month?
I well remember, in my first job in local government, being docked a day’s pay (1/365) because I started work on the 2nd of the month, a Monday! When I complained, I was told that I should have given notice to my previous employer to end my employment on Sunday 1 August, not the last working day in July.
Thursday, 29 November 2007 at 4:21 pm
A good question Bryan, although the particular problem to which you refer is not one that has been brought to our attention in recent years. Perhaps someone could let us know if this is still common practice?