If you resign due to constructive dismissal, you are still entitled to accrued holiday pay for leave earned but not taken up to your termination date.

Key Takeaways

  • Constructive dismissal does not forfeit accrued holiday pay
  • Holiday pay must be paid with final wages
  • Accrual continues until the termination date
  • Notice period holiday entitlement must be calculated
  • Employment tribunal claims can be made for unpaid holiday pay

What Is Constructive Dismissal

Constructive dismissal occurs when an employer’s conduct is so serious it amounts to a breach of contract, forcing the employee to resign. Examples include:

  • Bullying or harassment — Unacceptable behavior by management or colleagues
  • Breach of contract — Employer fails to honor contractual terms
  • Demotion without consent — Reduction in role or responsibilities
  • Fundamental changes — Significant changes to terms without agreement
  • Unsafe working conditions — Health and safety breaches

Holiday Pay Rights

Accrued Holiday

When you resign due to constructive dismissal:

  1. Accrual continues — You continue to accrue holiday during your notice period
  2. Untaken leave must be paid — Employer must pay for accrued but untaken holiday
  3. Final pay includes holiday — Holiday pay should be included with final wages
  4. No forfeiture — Your right to holiday pay is not lost by resigning

Calculation Method

Holiday pay is calculated based on your average weekly earnings over the previous 52 weeks.

Notice Period Considerations

Statutory Notice

  • Minimum notice — One week for each year of service (up to 12 weeks)
  • Contractual notice — Whatever your contract states
  • Holiday during notice — You can request to take leave during your notice period

Pay During Notice

  • Garden leave — If placed on garden leave, holiday continues to accrue
  • Working notice — Normal holiday accrual applies
  • Payment in lieu — If employer pays in lieu of notice, include holiday pay

Making a Claim

If your employer refuses to pay accrued holiday pay:

Step 1: Early Conciliation

  • Contact ACAS within 3 months of termination
  • Free conciliation service to resolve disputes
  • Often resolves holiday pay claims quickly

Step 2: Employment Tribunal

  • If conciliation fails, lodge a tribunal claim
  • Time limit — 3 months minus one day from termination
  • Claim type — Unpaid wages (including holiday pay)
  • Evidence — Payslips, contract, communication records

Step 3: Compensation

If successful, you may receive:

  • Unpaid holiday pay — Accrued but untaken leave
  • Basic award — Similar to redundancy pay calculation
  • Compensatory award — For financial losses (capped at annual salary or statutory cap)

Protecting Your Rights

Before Resigning

  • Document everything — Keep records of employer’s conduct
  • Seek advice — Consult employment solicitor or ACAS
  • Consider alternatives — Grievance procedure before resigning
  • Keep records — Save payslips, contracts, and communications

After Resigning

  • Request holiday pay — In writing to employer
  • Keep evidence — Document all communications
  • Act quickly — Time limits for tribunal claims are strict
  • Seek legal advice — For complex claims

Leave Management Implications

For HR teams managing constructive dismissal cases:

  • Calculate accrued holiday — Up to termination date
  • Process final pay — Include all holiday pay owed
  • Maintain records — For potential tribunal claims
  • Follow procedure — Ensure compliance with employment law
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