When an employee resigns, what does an employer have to pay in respect of holiday pay and benefits? How are these payments affected in circumstances where the employee does not work their notice period?

When an employee resigns what they are entitled to receive will largely depend on what is contained in their contract of employment, and further, to what extent both parties have been willing to adhere to the agreed terms. With holiday payments, in the event of any termination the employee will be entitled to be paid any accrued holiday which they have earned but not taken up to the termination date, subject to the normal tax deductions.

The termination date will be the employee’s last day of work (i.e. the last day of their notice period in circumstances where they have agreed to work their notice period in full).

The amount of holiday will be the full year’s entitlement reduced on a pro