Entitlements on resignation
On resignation, the employee becomes entitled to accrued payments that can both affect and be affected by public holidays, accrued alternative holidays, sick leave and bereavement leave.
Example: “Calculation on termination”
Jason resigns and finishes work on Friday, 16 October. Jason has been paid up to the preceding Tuesday 9 October. He has three days’ accrued alternative holidays and is entitled to four weeks’ paid annual holidays. He last became entitled to annual holidays on 25 June.
His final payment is made up of:
- payment for his work since the last pay period – that is, eight days’ pay for Wednesday, 10 October through to Friday 16 October
- payment for his three accrued alternative holidays at the relevant daily pay rate for working on Friday 16 October or at his average daily pay rate (if applicable)
- payment of four weeks’ annual holiday pay calculated as per the definitions of “ordinary weekly pay” and “average weekly earnings”
- an additional day’s payment for Labour Day at relevant daily pay or average daily pay (if applicable), as it falls during the four weeks’ notional annual holidays added to the end of his employment
- an additional 8% of his gross earnings since 25 June.
These gross earnings include:
- the four weeks’ annual holidays paid out
- payment for the alternative holidays
- payment for the public holiday.
