UK Leaver Holiday Entitlement & Final Pay Calculator
When an employee resigns or finishes their contract mid-year, you need to know exactly how many days or hours of holiday they have accrued up to their final day, whether you owe them payment in lieu or need to deduct overtaken leave, and how to explain the maths clearly to payroll and the employee.
Leaver holiday entitlement and final pay calculator
Work out accrued pro-rata leave up to an employee's final day, compare against leave already taken, and copy a ready-to-send payroll settlement note.
Use 5 for standard full-time, or e.g. 3 for part-time.
Usually 5 days per week.
Include bank holidays if they count towards the total annual entitlement (e.g. 28 statutory days, or 33 for 25 days plus 8 bank holidays).
Include paid bank holidays that fell during their employment this leave year.
Leave as 0 if no carryover applies.
Calculates the gross £ addition or deduction for final payroll.
Net holiday owed to employee (payment in lieu)
6.27 days owed
Or 6.5 days if your payroll rounds up to the nearest half-day.
Estimated gross final pay addition
+£846.45
- Employed in leave year
- 212 / 365 days (58.08%)
- Full-year pro-rata allowance
- 28 days
- Accrued to leaving date
- 16.27 days
- Taken (incl. bank holidays)
- 10 days
Ready-to-send Payroll & Employee Leaver Statement
Paste directly into your payroll run notes, accountant email, or leaver confirmation letter.
LEAVER HOLIDAY SETTLEMENT STATEMENT (Departing employee) Leave year: 1 Jan 2026 to 31 Dec 2026 (365 calendar days) Accrual period in leave year: 1 Jan 2026 to 31 Jul 2026 (212 calendar days, 58.08% of year) Annual holiday entitlement for pattern (5/5 days/wk): 28 days Accrued entitlement to leaving date: 16.27 days Holiday taken (including bank holidays taken in period): 10 days Net holiday owed (payment in lieu): 6.27 days exact (6.5 days if rounded up to nearest half-day) Estimated gross final pay addition (@ £135.00 per day): £846.45
Note: Under the Working Time Regulations 1998, unused statutory annual leave on termination must be paid in lieu and cannot be rounded down. Deductions for overtaken holiday require a prior written agreement in the employment contract or staff handbook.
Never calculate leaver holiday pay in a spreadsheet again
When someone resigns, Leavely automatically calculates their exact pro-rata accrued entitlement up to their leaving date, subtracts taken and bank holiday leave, and generates a one-click payroll statement.
How UK leaver holiday calculations work (Regulation 14 formula)
Under Regulation 14 of the Working Time Regulations 1998, an employee leaving part-way through a leave year is entitled to the proportion of their annual holiday that matches the proportion of the leave year they have been employed:
Worked example 1: Payment in lieu owed to leaver
Alex works full-time (5 days a week) with a 28-day allowance (including bank holidays) in a January-to-December leave year. Alex leaves on 30 June (181 of 365 calendar days) and has taken 8 days (including 4 bank holidays).
- • Accrued to 30 June: 28 × (181 ÷ 365) = 13.89 days
- • Less holiday taken: 13.89 − 8 = 5.89 days owed in lieu
- • At £140/day gross pay: +£824.60 added to final salary
Worked example 2: Overtaken holiday deduction
Sam works part-time (3 days a week, 16.8 days pro-rata annual allowance) in a January leave year. Sam resigns with a final day of 31 March (90 of 365 calendar days) after already taking a 7-day holiday in February.
- • Accrued to 31 March: 16.8 × (90 ÷ 365) = 4.15 days
- • Less holiday taken: 4.15 − 7 = −2.85 days (overtaken)
- • Provided the contract has a deduction clause, 2.85 days can be deducted from final pay.
Related UK leave tools and employer guides
Frequently asked questions about leaver holiday pay
- How do you calculate holiday owed when an employee leaves mid-year in the UK?
- Under Regulation 14 of the Working Time Regulations 1998, you calculate the proportion of the leave year the employee has worked up to their final day of employment, multiply that fraction by their annual holiday entitlement (pro-rated if part-time), and subtract the holiday days or hours they have already taken during that leave year.
- Do bank holidays count in a leaver holiday calculation?
- If your employment contracts include bank holidays inside the total annual allowance (for example, 28 days including bank holidays, or 33 days including 8 bank holidays), use the full combined allowance as the annual figure and count any paid bank holidays that fell during their employment in the leave year as leave already taken.
- Can an employer round down accrued holiday when an employee leaves?
- No. Statutory holiday accrued on termination under Regulation 14 of the Working Time Regulations 1998 must not be rounded down to the employee disadvantage. Employers should pay the exact decimal figure (for example, 4.38 days) or round up in the employee favour (for example, to the nearest tenth or half-day).
- Can you deduct overtaken holiday from an employee final pay?
- Yes, provided there is a clear, prior written agreement in the employee contract of employment or signed staff handbook authorising a deduction for holiday taken in excess of accrued entitlement (required under Regulation 14(4) of the Working Time Regulations 1998 and section 13 of the Employment Rights Act 1996). Without a written clause, deducting overtaken holiday can be challenged as an unlawful deduction from wages.
- Can an employer require an employee to take remaining holiday during their notice period?
- Yes, either because the employment contract expressly allows the employer to require notice-period holiday, or by giving formal notice under Regulation 15 of the Working Time Regulations 1998 that is at least twice as long as the holiday the employee is being required to take (for example, 6 calendar days of notice to require 3 days of holiday).
- How is leaver holiday calculated if the employee also joined during the same leave year?
- Do not pro-rate their balance twice. Take their full-year annual entitlement for their working pattern, multiply it by the number of calendar days between their start date and their final day of employment divided by the total days in the leave year (365 or 366), and subtract the leave taken since their start date.
- What rate of pay applies to untaken holiday paid in lieu on termination?
- For statutory holiday (the first 5.6 weeks), payment in lieu must reflect normal remuneration, including regular overtime, commission, or allowances where applicable. For purely contractual leave above the 5.6-week statutory minimum, the employment contract can specify the calculation rate (usually basic daily or hourly pay).
Automate starter and leaver pro-rata leave in Leavely
Built for UK teams of 5 to 25 staff and schools. Leavely calculates mid-year starters, part-time patterns, UK regional bank holidays, and offboarding holiday balances automatically.