Holiday and pay
Annual leave during notice: booking time off before leaving
Giving notice does not remove holiday rights. Confirm the employment end date, calculate the entitlement accrued to that point and agree what will be taken or paid in the final settlement.
- Calculate entitlement up to termination
- End date matters
- Requests still need a clear decision
- Booking rules apply
- Accrued statutory holiday at departure
- Pay unused leave
Guidance for England, Scotland and Wales. Northern Ireland employment rules can differ.
Calculate the balance before arranging the handover
Start with the confirmed employment end date, the leave year and the worker's entitlement method. Deduct holiday already taken and include any valid carried-over balance.
Do not confuse the final day attending the workplace with the date employment ends. A person may remain employed while taking holiday or on garden leave. The distinction affects the period over which entitlement is calculated.
Source: GOV.UK: holiday when leaving a job · GOV.UK: calculating leave and carry-over
Handle requests and required leave properly
Workers may request remaining holiday during notice, and employers can refuse particular dates subject to the applicable notice rules. They cannot remove the right to statutory leave altogether.
Check the contract first for agreed notice arrangements. GOV.UK gives default periods for requesting, refusing or requiring leave. If the employer requires holiday to be taken, it must give the required advance notice and ensure that it is actual time for rest.
Source: GOV.UK: booking time off
Settle what remains at the end
On termination, employers must pay for accrued statutory holiday that has not been taken. This applies even after dismissal for gross misconduct. Extra contractual holiday may have different terms.
If the worker has taken more leave than accrued, a deduction from final pay needs prior written agreement. Do not make an automatic deduction merely because the leave system shows a negative balance.
In practice
A handover and holiday can both fit
An employee has a confirmed leaving date and five days of accrued holiday available. The manager first identifies which handover tasks need the employee's input, then considers requested holiday dates under the normal booking rules.
The written plan shows working days, approved holiday and the employment end date separately. Any accrued statutory balance still untaken at termination goes to payroll for payment.
Your next steps
- Confirm the termination date in writing.
- Recalculate entitlement using the worker's actual pattern and leave year.
- Decide holiday requests and any required leave with the correct notice.
- Send payroll a final balance, separating payment from any proposed authorised deduction.
Sources and review
Reviewed against the official guidance below on 7 September 2026. Rates and employment rules can change; use the linked guidance for a decision about an individual case.
Contains public sector information licensed under the Open Government Licence v3.0. Crown copyright. This is Leavely's independently written guide.
Related guides and tools
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