The Working Time Regulations (Northern Ireland) 2016

Compensation related to entitlement to leave

17.—(1) This regulation applies where—

(a) a worker’s employment is terminated during the course of the worker’s leave year, and

(b) on the date on which the termination takes effect (“the termination date”), the proportion of leave taken to which the worker is entitled in the leave year under regulation 15 and regulation 16 differs from the proportion of the leave year which has expired.

(2) Where the proportion of leave taken by the worker is less than the proportion of the leave year which has expired, the employer shall make a payment to the worker in lieu of leave in accordance with paragraph (3).

(3) The payment due under paragraph (2) shall be—

(a) such sum as may be provided for the purposes of this regulation in a relevant agreement, or

(b) where there are no provisions of a relevant agreement which apply, a sum equal to the amount that would be due to the worker under regulation 20 in respect of a period of leave determined according to the formula—

where—

• A is the period of leave to which the worker is entitled under regulation 15 and regulation 16;

• B is the proportion of the worker’s leave year which expired before the termination date; and

• C is the period of leave taken by the worker between the start of the leave year and the termination date.

(4) A relevant agreement may provide that, where the proportion of leave taken by the worker exceeds the proportion of the leave year which has expired, the worker shall compensate the employer, whether by a payment, by undertaking additional work or otherwise.