Workplace Report October 2000

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Features: Law at work

Holiday pay

An employee who is paid an annual salary and who has holiday outstanding at the end of the employment contract has the right to be paid in lieu at the rate of 1/365ths of annual salary. However, since the calculation is made over 365 days, holidays similarly must include non-working days. This meant that an employee with 10 days' leave outstanding, who normally worked a five-day week, was entitled to be paid 14/365ths to take account of the non-working days in the week.

(Taylor v East Midlands Offender Employment EAT/1287/99)

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