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What happens when Employees resign just before Christmas?

Published 01 Dec 2013

When Employees with annual holiday entitlement resign, that annual holiday is applied notionally after their last day of employment. As if, in theory, that Employee has taken his or her annual holiday after their last day of employment. If a public holiday falls within this period and it would have been an otherwise working day for that Employee had he or she been still in Employment, the Employer would have to pay for that holiday.

For example if John resigned on 6 December giving his 2 week notice in accordance with his Employment Agreement. John’s last day would be Friday 20 December. If John has 3 weeks of annual holiday entitlements, the Employer will count forward from the final day of employment until the entitlement is depleted. In this example Christmas, Boxing Day, New Year’s Day, and the 2nd of January will fall within that period. If those 4 public holiday days fall on days that would otherwise have been working days, they would  be paid as public holidays and will not form part of John’s annual holidays.

John would not be entitled to a paid public holiday after the date of termination if he had not completed a full year of service for the company, as he would not have become entitled to any annual holidays but rather would have accrued holiday pay.

If John had no annual holidays entitlements by his final day of employment, he would not be paid for the public holidays. 

If you are facing a similar situation (and/or you have a Closedown during Christmas) please get in touch, as the rules are different where Closedowns are involved.