Can we deduct holiday taken but not accrued (from pay) when an employee leaves?
Yes, although employers can only deduct the holiday pay overpaid from a final wage payment if there is a written agreement within the employment contract for the deduction of wages.
Should such an agreement not be in place, it may prove difficult to get back the funds, unless the business is willing to take legal action against the employee. Consideration will need to be taken around whether that is worth pursuing – in terms of the amount of money involved, the message to other employees and the risk of any potential reputational damage from a disgruntled employee.
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