Holiday Accrual Calculator

How it works

This calculator uses the dates entered to calculate the proportion of the employee's annual entitlement represented by the accrual period.

The calculation uses calendar days in the relevant leave year and accrual period. The accrual period must fall within the selected leave year.

The calculator deliberately allows the balance to become negative. For example, if 14 days have accrued but 16 days have already been taken, the result will be -2.00 days.

Compliance and deductions

A negative holiday balance does not automatically mean that an employer can deduct money from an employee's wages. It indicates that, based on the information entered, more holiday has been taken than has accrued.

Check the employment contract

Before making a deduction from wages, check the employee's employment contract and any applicable holiday policy. An employer generally needs a lawful basis for a deduction, such as a contractual provision or the employee's prior written agreement, unless the deduction is otherwise authorised by law.

Acas guidance explains that deductions from wages should be supported by the appropriate contractual or written basis. Where holiday has been taken in excess of entitlement, the employer should check the agreement that applies before recovering the amount.

A negative balance is not automatic authority to deduct

The negative figure shown by this calculator is a calculation only. It does not determine whether a deduction from wages is lawful.

Before recovering an amount, check the contractual holiday entitlement, the relevant leave year, any carry-over arrangements and the circumstances in which the holiday was taken.

When employment ends

When employment ends, any accrued holiday that has not been taken will normally need to be paid to the employee in line with the applicable statutory and contractual entitlement.

If an employee has taken more holiday than they have accrued, recovery from final wages should only be made where there is an appropriate contractual or written basis for the deduction.

Practical HR checks

• Check the employee's contract for a holiday repayment or deduction clause.
• Check the correct holiday entitlement and leave year.
• Check whether any holiday has been carried over.
• Check whether contractual holiday applies in addition to statutory entitlement.
• Check that the accrual period and dates are correct.
• Explain the calculation and proposed recovery to the employee before payroll processes any deduction.
• Keep a record of the calculation and contractual basis for any deduction.