During redundancy consultation, employees continue to accrue annual leave and can request to take leave during the consultation period, with any untaken leave paid on termination.
Key Takeaways
- Annual leave continues to accrue during redundancy consultation
- Employees can request leave during consultation period
- Untaken leave must be paid on termination
- Consultation period does not affect leave entitlement
- Employees have same leave rights as non-redundant employees
Leave During Redundancy Consultation
Employee Rights
- Continue to accrue - annual leave during consultation
- Can request leave - as normal during consultation
- Same entitlement - as non-redundant employees
- No reduction - leave not affected by redundancy process
Employer Obligations
- Process leave requests - as normal during consultation
- Accrue leave - for all employees in consultation
- Pay on termination - for any untaken leave
- Maintain records - of leave taken and accrued
Consultation Period
Duration
- Minimum consultation - 30 days (1-99 redundancies)
- Minimum consultation - 45 days (100+ redundancies)
- Enhanced contractual - longer if agreed in contract
- Leave continues - to accrue throughout
During Consultation
- Normal duties - unless agreed otherwise
- Normal leave - can request annual leave
- Sick leave - continues if applicable
- Other leave - as per normal entitlements
Taking Leave During Consultation
Employee Requests
- Can request leave - as normal
- Notice requirements - apply as normal
- Employer can refuse - on business grounds
- Flexible approach - consider employee circumstances
Employer Directions
- Can require leave - during consultation period
- Notice requirements - must give correct notice
- Business needs - can direct when leave is taken
- Handover - may require work during leave
Payment on Termination
Accrued Leave
- Calculate entitlement - pro-rata for part-year
- Pay for untaken leave - at normal rate
- Payment in lieu - with final wages
- Statutory rate - or contractual rate if higher
Calculation
- Determine total entitlement - statutory and contractual
- Subtract leave taken - during current holiday year
- Calculate pro-rata - if leaving mid-year
- Pay at normal rate - average weekly earnings
Example
- Annual entitlement - 28 days
- Leave taken - 15 days
- Days remaining - 13 days
- Payment - 13 days × daily rate
Redundancy Payment
Statutory Redundancy Pay
- Based on age - and length of service
- Weekly pay - capped at statutory maximum
- Maximum - 20 weeks’ pay
- Tax-free - up to £30,000
Enhanced Redundancy Pay
- Contractual terms - if enhanced pay agreed
- Company policy - if enhanced terms apply
- Negotiated terms - as part of settlement agreement
- Tax treatment - may be taxable above £30,000
Special Circumstances
Long-Term Sick Leave
- Leave continues - to accrue during sick leave
- Payment - statutory sick pay or contractual
- Holiday during sick leave - can request to take
- Carry-over - may be required if unable to take
Maternity Leave
- Leave continues - to accrue during maternity leave
- Payment - statutory maternity pay
- Holiday during maternity - can request to take
- Carry-over - may be required
Flexible Working
- Pro-rata entitlement - based on working pattern
- Bank holidays - treated proportionately
- Leave calculation - adjusted for flexible hours
Managing Leave During Redundancy
For HR Teams
- Track accrual - monitor leave for all employees
- Process requests - handle leave as normal
- Calculate payment - for untaken leave on termination
- Communicate clearly - explain leave entitlements
- Maintain records - for compliance and payment
For Managers
- Handle requests fairly - treat all employees equally
- Consider circumstances - employee may need leave
- Plan coverage - arrange work during absence
- Document decisions - record reasoning for refusals
- Support employees - during difficult time
Leave Management for Redundancy
Effective management requires:
- Accurate tracking - of leave taken and accrued
- Clear policy - on leave during redundancy
- Payment calculation - accurate and timely
- Communication - clear information for employees
- Compliance - adherence to employment law
Compliance Checklist
- Leave accrual continues during consultation
- Leave requests processed as normal
- Untaken leave paid on termination
- Redundancy pay calculated correctly
- Employees informed of entitlements
- Records maintained for compliance
You can take advantage of the free 14 days trial and explore Leave Balance.