Redundancy

Department for Business, Energy and Industrial Strategy written question – answered on 3rd September 2020.

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Photo of Jessica Morden Jessica Morden Chair, Statutory Instruments (Joint Committee), Chair, Statutory Instruments (Select Committee), Chair, Statutory Instruments (Joint Committee), Chair, Statutory Instruments (Select Committee), Shadow Vice Chamberlain of HM Household (Whip)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that companies comply with ACAS guidelines on accrued holiday pay when making an employee redundant.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

Where a worker is made redundant by their employer, they are entitled to be paid for any accrued but untaken holiday and any holiday taken but unpaid up to the point of their redundancy. Further guidance on how to calculate holiday pay and entitlement is available on GOV.UK and is kept under review.

On the 23rd July, the Department published updated guidance to clarify holiday pay for workers who are made redundant. This also includes when an employee is made redundant by an insolvent employer. The guidance can be found at https://www.gov.uk/government/publications/calculating-holiday-pay-for-workers-without-fixed-hours-or-pay

Employees who feel their rights have been denied may contact ACAS to receive free and impartial advice and may be able to bring a claim to an employment tribunal.

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