Holiday entitlement during notice period requires careful management by both employees and employers.
Holiday Rights During Notice
Basic Position
Aspect Rule Holiday continues to accrue During notice Can request leave As normal Employer can refuse With proper notice Employer can require leave With proper notice
Notice Period Doesn't Change Rules
Standard Rules Still Apply Request holiday Twice leave length notice Employer refuses Same length counter-notice Employer requires Twice leave length notice
Taking Holiday During Notice
Requesting Leave
Action Notice Required Request 1 week 2 weeks in advance Request 2 weeks 4 weeks in advance Employer response Accept or refuse
Employer Refusing
To Refuse Notice Required 1 week leave 1 week counter-notice 2 weeks leave 2 weeks counter-notice Must be reasonable Cannot refuse all
When Refusal Is Common
Situation Employer View Handover needed Want you working Short notice period Limited flexibility Critical period Business need
Employer Requiring Holiday
Forcing Leave During Notice
Employer Can With Notice Require 1 week leave 2 weeks notice Require 2 weeks leave 4 weeks notice Use up accrued leave During notice
Why Employers Do This
Reason Benefit Avoid payment in lieu Cheaper than paying Manage accrued leave Use it up Longer notice = more scope Can require more
Limitations
Cannot Reason Give less notice Must be 2× leave Require more than accrued Only what you've earned Breach notice period Leave must fit
Calculating Holiday During Notice
Accrual During Notice
Element Calculation Monthly accrual Annual entitlement ÷ 12 Notice period Adds more accrued Total owed Accrued minus taken
Example Calculation
4 weeks' notice, 28 days annual entitlement:
Element Days Already accrued (9 months) 21 days Plus notice (1 month) 2.33 days Total accrued 23.33 days Already taken 15 days Remaining 8.33 days
Payment in Lieu
When It Applies
Situation Outcome Leave not taken Paid in final pay Cannot be taken Paid instead Statutory entitlement Must be paid
Calculation
Formula Amount Untaken days × daily rate Daily rate Annual salary ÷ 260 (or actual) Gross amount Before tax
Example
8.33 days untaken, earning £40,000:
Calculation Result Daily rate £40,000 ÷ 260 = £153.85 Payment 8.33 × £153.85 = £1,281.55
If You've Taken Too Much
Overtaken Holiday
Situation Position Taken more than accrued May owe employer Contract clause Allows deduction No clause Cannot automatically deduct
Deduction Rules
Requirement Detail Contractual right Must be in contract Written authorisation Before employment Not below NMW Minimum wage protected
Garden Leave
What It Is
Feature Detail Remain employed During notice Don't attend work Stay at home Full pay Usually Restrictions apply Non-compete etc.
Holiday and Garden Leave
Position Detail Still employed During garden leave Holiday accrues As normal May be required To take leave during Check terms Of garden leave
PILON (Payment in Lieu of Notice)
How It Differs
Element Effect on Holiday Notice not worked Employment ends No further accrual Stops at termination Holiday calculated To termination date Paid separately From notice pay
Holiday with PILON
Calculate At Termination Date Accrued to date Monthly calculation Minus taken What you've used Pay difference In final pay
Resignation vs Dismissal
If You Resign
Position Detail Same rules apply Holiday rights Can request leave During notice Employer can refuse With notice Owed holiday paid On leaving
If You're Dismissed
Position Detail Same rules apply Holiday rights Employer may require Leave during notice Accrued paid In final pay Gross misconduct Still owed accrued
Practical Tips
For Employees
Tip Why Check balance Know what you're owed Request early If want to take Understand requirements Employer may require Check final pay Verify calculation
For Employers
Tip Why Calculate properly Avoid disputes Give proper notice If requiring leave Document Requests and responses Include in final pay Statutory requirement
Common Scenarios
Scenario 1: Long Notice
12 weeks' notice, 10 days accrued leave:
Option Process Employee takes leave Requests with notice Employer requires leave Gives 2× notice Combination Agreed approach Pay remaining At end
Scenario 2: Short Notice
1 week notice, 5 days accrued:
Situation Outcome Can't take 5 days In 1 week Paid in lieu At end Unless agreed To work less
Scenario 3: Overtaken
2 weeks' notice, taken 3 days more than accrued:
If Contract Allows Deduction Deduct from pay £X per day Subject to limits Not below NMW
Disputes
If Employer Refuses All Leave
Issue Response Unreasonable May be unlawful Cannot take entitlement Problem Document refusals Evidence Seek advice If concerned
If Holiday Calculation Wrong
Step Action Check your figures Verify calculation Query with employer In writing Provide evidence If they disagree Escalate If not resolved
Frequently Asked Questions
Can I take holiday during my notice period? Yes, you can request holiday during notice as normal. However, your employer can refuse requests (with proper counter-notice) and can also require you to take accrued holiday during notice by giving you twice the notice of the leave period.
Can my employer make me take holiday during notice? Yes. Employers can require you to take accrued but untaken holiday during your notice period. They must give you notice of at least twice the length of the leave - so 2 weeks' notice for 1 week's mandatory leave.
Do I get paid for untaken holiday when I leave? Yes. Any statutory holiday you've accrued but not taken must be paid in your final pay. This is payment in lieu of holiday. You cannot 'cash in' holiday while still employed - only when leaving. Disclaimer: This information is for general guidance only and does not constitute legal advice. Employment law is complex and changes frequently. For specific situations, consult ACAS, a qualified employment lawyer, or HR professional.