Holiday Pay on Termination — Dispute Letter: Free Template and What to Include

If you need to claim unpaid accrued holiday that was not included in your final pay, a written letter is the recommended first step — it creates a clear record and shows you're pursuing the matter formally. Below is what a strong holiday pay on termination — dispute should include.

What this letter needs to cover

• State entitlement to payment in lieu of accrued untaken statutory leave on termination under the Working Time Regulations 1998
• Calculate the days and amount owed
• Give 7 days to pay or warn of unlawful deductions claim

Your right to be paid for unused holiday when you leave

When your employment ends, you're entitled to be paid for any statutory holiday you've accrued but not yet taken — this is a clear legal right, and it's a common area where final pay calculations get it wrong, particularly around how much leave had actually accrued by your specific leaving date.

What to include before you send it

• Your leaving date and your calculation of accrued but untaken leave up to that point
• The amount you believe should have been included in your final pay
• What was actually paid, and the shortfall you're claiming
• A request for the correct amount to be paid, with a reasonable deadline

How accrued leave should be calculated

Accrual is generally calculated proportionately based on how much of the leave year had passed by your leaving date, compared to leave already taken. If you left partway through the year, this isn't simply your full annual entitlement — but many people find their employer's calculation still doesn't correctly reflect this proportion.

Frequently Asked Questions

What if my contract has a "use it or lose it" clause?
Contractual clauses can't remove your statutory right to be paid for accrued but untaken statutory leave on termination — this right can't be contracted out of.

How do I challenge this if my employer disagrees with my calculation?
If a clear written request doesn't resolve it, this can be pursued as an unlawful deduction from wages claim through the Employment Tribunal.

[Your Name]
[Your Address]
[Your Postcode]
[Your Phone Number]
[Your Email Address]
[Name of Recipient, e.g. HR Manager]
[Job Title]
[Company Name]
[Company Address]
[Company Postcode]
[Date]

Dear [Name of Recipient],

Subject: Holiday pay owed in my final pay

My employment with [Company Name] ended on [Last day of employment]. I am writing to dispute the payment for my accrued but untaken holiday in my final pay.

This holiday year started on [Start date]. By my last day I had accrued [e.g. 15 days] of holiday and taken [e.g. 5 days], leaving [e.g. 10 days] untaken.

My final payslip shows I was paid for [e.g. 4 days]. I am owed a further [e.g. 6 days], which is £[amount]. Under regulation 14 of the [Working Time Regulations 1998 / in Northern Ireland: Working Time Regulations (Northern Ireland) 2016], I am entitled to be paid for accrued but untaken holiday when my employment ends.

Please pay this within 7 days. If you do not, I may make a claim for unlawful deduction from wages.

Yours sincerely,

[Your Signature]
[Your Printed Name]