Answer
For an employee who is not on pay-as-you-go holiday pay, the final pay can include two annual-holiday components:
- unused entitled Annual Holidays, paid as if the holidays are taken from the end of employment; and
- 8% of gross earnings since the last anniversary date, less annual holidays paid in advance or pay-as-you-go amounts already paid.
In the web app, the 8% part-year holiday pay is included in the Additional termination amount in the termination section (it is not shown as a separate line) and is calculated for non pay-as-you-go employees only. It recalculates when the employment finish date changes, unless you tick Enter leave amounts manually. The 8% base includes earnings owed in the final pay where the Holidays Act requires them to be part of gross earnings; for a detailed breakdown, calculate it externally.
Before completing the final pay, check the employee's last anniversary date, opening balance, pay-as-you-go history, historic pay coverage, public holidays that fall in the notional final-holiday period, and any manual leave overrides.
