How do you calculate leave if someone begins or ends their employment part way through a leave year?

Employers will usually have a leave year in line with the calendar (Jan-Dec) or the financial year (April – March). However they can choose any time in the year. If the employer failed to denote a clear leave year, the employee is entitled to assume it commences from when they begin their employment, and that date will form their anniversary date for holiday entitlement.

If an employee commences employment with you part way through a leave year, then they will accrue their holiday at a rate of 1/12th each month.

If employment is terminated part way through a leave year then employees should be paid in lieu of any holidays they have accrued and not yet taken.

Alternatively, if the employee has taken more holiday than they have accrued at the date of termination, the employer is entitled to deduct sums from the employee’s final wages to cover these days, as the employee will have received an overpayment of wages.