How is accrued holiday calculated on termination?

The formula

Accrued = (annual_entitlement × days_worked_in_leave_year / 365) − days_already_taken

Example

Employee with 25 days annual entitlement, leave year starts 1 January, terminates 30 June, has taken 8 days so far:

• Days worked: 1 Jan → 30 Jun = 181 days
• Accrued = 25 × 181/365 = 12.40 days
• Minus 8 taken = 4.40 days owed

The 4.40 days appears on the offboarding tab as an amount-to-pay-out. The pay-out value uses the employee's current daily rate (gross salary / 260 working days).

Edge cases

• Negative accrued (took more than earned) — recovery from final pay is allowed only if the contract permits it. By default we show it as a £0 owed; you decide.
• Bank holidays — the calculator excludes statutory bank holidays already taken (they don't count against annual leave).
• Public-holiday region override — if the employee is on a different regional calendar than the tenant default, the override applies.

Where it shows

Employee detail > Offboarding tab > Accrued holiday section. Updated live as you change the termination date in the terminate-employee modal.