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Ben Jones
Ben Jones, UK Lawyer
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If as an employee we have four weeks holiday banked from

Resolved Question:

if as an employee we have four weeks holiday banked from 1997 7 we were to leave now would the company have to pay at today's rate or at the rate of when it was banked.
One employee has left & had to fight to get paid at todya rate but another has been told they will only pay at the old rate.
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 1 year ago.

What is the company procedure regarding holidays that are not taken? Please can you also tell me how long you have worked there for?

Customer: replied 1 year ago.
Hi Ben,
This is not regarding holidays that have not been taken.The company i work for in 1997 started the holiday accrument system before that we had to be there a year before we could take any holiday any staff like myself had our yearly holiday days frozen & had to start from scratch.We now are owed these four weeks when we leave. the question is do we get paid these at todays hourly rate or at the rate when they were frozen.I have worked there for 42 years this month.
Regards Lorraine.
Expert:  Ben Jones replied 1 year ago.

OK, thank you for your response. I will review the relevant information and laws and will get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Also, please do not responded to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Expert:  Ben Jones replied 1 year ago.

Thanks for your patience. Banking of holidays is not something automatically allowed by law so if the employer allows it then it will be done on their terms. This means that if they had an agreement, policy or clause stating that banking of holidays means you get paid at the rate at the time the holiday was banked, they can use that rate. However, if there was nothing agreed or stated that the old rate applies, if you are to be paid for holidays then this should be paid at the current rate. So it all depends on whether they had a policy on banking holidays and what rate was defined there and in the absence of any such policy, it is the current rates which should apply.

This is your basic legal position. I have more detailed advice for you in terms of the options you have to take this further if needed, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

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Expert:  Ben Jones replied 1 year ago.

Thank you. Failure to pay you what you are due potentially amounts to an unlawful deduction from wages, which is made illegal under the Employment Rights Act 1996.

In order to try and resolve this, the employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow.

If the employer does not return the money as requested, the following options are available:

1. Employment Tribunal - the time limit to claim is only 3 months from the date the payments became due. To make the claim, form ET1 needs to be completed and submitted - you can find it here: https://www.employmenttribunals.service.gov.uk/employment-tribunals

Hopefully by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.