Outstanding statutory annual leave is paid when employment terminates. Work out the leave accrued up to the agreed termination date, subtract leave already taken, and value the remaining hours or days using the appropriate normal rate.
Why unused leave appears in final pay
During employment, the minimum statutory leave is intended to be taken as paid time off. Termination is the point at which payment in lieu of an untaken statutory balance is permitted. This applies whether the employment ends by resignation, dismissal or redundancy, although other final-pay items may differ.
How to calculate the outstanding balance
- Confirm the employer’s leave year and the termination date.
- Calculate statutory leave earned in the relevant period using the greatest applicable method.
- Add any contractual leave that the written terms say is payable on termination.
- Subtract leave already taken.
- Convert the remaining balance into pay using the appropriate normal hours and rate.
Do not assume the leave year always runs January to December. The contract or staff handbook may use another period.
Worked example
Niamh has accrued 72 hours by her termination date and has taken 52 hours. Her outstanding balance is 20 hours. If the applicable normal hourly value is €18, the gross payment for that balance is €360 before payroll deductions.
This is a simplified check. Variable pay, contractual leave and changes in working hours can affect the employer’s final figure.
Does leave continue to accrue during notice?
Employment normally continues during worked notice, so leave can continue to accrue up to the termination date. Payment in lieu of notice, garden leave or an agreed earlier release can change which date matters. The written agreement and final payroll record should make that clear.
Annual leave does not automatically shorten a notice period. Leave during notice should be agreed or directed under the applicable arrangements.
Sick leave and older untaken balances
Certified sick leave counts for statutory annual leave accrual. Where illness prevented statutory leave from being taken, the WRC describes a 15-month carry-over period after the end of the leave year and related protection for payment on termination. Keep medical certificates and leave records if this affects the balance.
What to check on the final payslip
- Final salary or hourly wages through the termination date.
- The leave balance, units and rate used.
- Any payment in lieu of notice shown separately.
- PAYE, USC, PRSI and any other itemised deductions.
- The leaving date reported to Revenue.
Estimate leave earned before you leave
Use your hours and normal working week, then subtract leave already taken.
Estimate annual leaveFrequently asked questions
Do I get paid for unused holidays when I leave?
Yes. Payment is due for outstanding statutory annual leave when employment terminates. Contractual leave above the minimum depends on the written terms.
Is unused leave based on my resignation date or last day?
The relevant endpoint is normally the termination date, which may differ from the day notice was submitted or the last day physically worked.
Can I take annual leave during my notice period?
It may be possible, but annual leave does not automatically replace notice. The timing should be agreed or set under the applicable leave arrangements.
Is holiday pay subject to payroll deductions?
A payment for unused leave is normally processed through payroll, so the final payslip should show applicable deductions.
What if my final leave figure looks wrong?
Ask for the accrual period, method, leave taken and pay rate in writing, then compare them with your records and the WRC guidance.
Official sources
Rules and thresholds can change. Check the source that applies to your circumstances before making an important decision.
Important: This guide provides general information for workers in Ireland. It does not replace your contract, payroll records, official guidance or advice on a disputed or unusual case.