When an employee resigns, does an employer have to pay holiday pay/termination payments based on salary plus extras such as car allowance and mortgage allowance?Posted in : First Tuesday Q&A NI on 3 December 2013
This depends on the wording in the employee’s contract of employment.
Generally it is the case that when an employee resigns the employee will be paid his/her normal salary and contractual benefits up to the date of termination of employment. If the employee has accrued any untaken holiday leave at the date of termination he/she will be entitled to pay in lieu of this.
Generally it is the case that that all contractual benefits cease at the date of termination on the basis the employment relationship has ended, however, depending on the wording in the contract, the employee may be entitled to some additional payments.
It is important that the employer complies with all contractual
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Back to Q&A's This article is correct at 02/09/2015
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.