Excess holiday recovery letter template
Our Excess Holiday Recovery Letter template helps employers address overpaid holiday pay issues professionally and transparently.
- 1 page / 151 words.
- Last updated 03/10/2025.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Excess holiday recovery letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Recovery of holiday taken in excess of your entitlement
I'm writing to let you know that, as a result of the [recent] or [imminent] termination of your employment, you will have taken [number] more holiday days than you have accumulated in annual leave.
You have taken [number] days off during the current annual leave
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An excess holiday recovery letter is a formal communication from an employer to an employee who has taken more holiday days than they were entitled to, informing them that they must repay the excess days taken.
It is important for employers to communicate this information clearly and sensitively to the employee, and to provide support if needed to ensure that the employee is able to repay the excess holiday taken. Employers may also want to review their holiday policy to ensure that it is clear and consistent, to help prevent similar situations in the future.
It is usually delivered to the Employee by the Employer / HR.
It should be actioned usually when the employee resigns, or at the end of a holiday year.
Compliance
Compliance
This Excess holiday recovery letter template incorporates relevant UK laws and HR standards, including those listed below:
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Employment Rights Act 1996: Provides guidelines on holiday entitlement and pay, including how to handle overpaid holiday pay.
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Working Time Regulations 1998: Defines rules around annual leave, including calculation, carry-over, and how to handle excess leave taken.
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Deduction from Wages (Limitation) Regulations 2014: Outlines legal requirements for recovering overpaid wages, including excess holiday pay.
Flowchart
Flowchart
Check which resources should be implemeted before and/or after the Excess holiday recovery letter template, to understand the workflow.
Annual leave policy
Our Annual Leave Policy template simplifies time-off requests, ensures fair allocation, and fosters a well-rested workforce for better productivity.
Timings
Timings
Follow these best practice actions to get the most from the Excess holiday recovery letter template, guiding you before, during, and after implementation:
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| Step | Description | Responsibility | Timing |
| 1 | Identify excess holiday days taken by the employee. | HR | Ongoing monitoring |
| 2 | Calculate the value of excess holiday taken. | Payroll | As soon as identified |
| 3 | Prepare an Excess Holiday Recovery Letter explaining the situation, the excess days, and the recovery process. | HR | Before sending |
| 4 | Send the letter to the employee, including the details of repayment options and deadline. | HR | Upon preparation |
| 5 | Monitor and track the repayment process. | HR | After sending letter |
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Excess holiday recovery letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
