Helpline advisor unfairly dismissed after resignation due to holiday pay issues

The unfair dismissal case

Ms M Tracey a helpline advisor at Acas worked from 2013 until her resignation on 10 February 2022. The tribunal found that after multiple disputes over the employee’s contract and improper holiday calculation and recording, the advisor was unfairly dismissed.

It was found that Tracey never signed a new contract after her initial contract which only lasted a year. This was due to disputes over various queries like wanting to have her specific hours specified. Nothing was agreed on, which meant she did not have a contract after April 2014.

Later on, Acas started using a new software system to manage holidays and absences. But the tribunal found that “the persons in control of the system did not know how to properly record the holiday entitlement”. Tracey’s leave records were not stored.

In 2018 Tracey’s then-manager found that her leave records could not be found. She tried to manually record these herself going back to 2013. She was later promoted and again asked for clarification on her leave entitlement.

Further issues

Payroll believed that she may have been overpaid, but when the employee challenged this Acas said they would not recover the overpayment. She still did not receive a response to her queries on leave entitlement.

In 2021 Tracey felt like these ongoing issues had left her with no other option but to resign. Her line manager persuaded her to retract her resignation and reassured her that her pay issues would be resolved.

It was agreed by the managers that Tracey would receive a letter stating the final figures. She was only issued a draft letter. She then asked again for a finalised letter to be issued.

Before the final letter could be issued a new payroll administrator took over. Mr T Hogue stated that the bank holidays would have to be deducted from her entitlement. Tracey believed this to be untrue.

When she was copied in, Tracey took the view that as all but one of these bank holidays fell during the time she was not at work, they should not have been deducted. She felt that she had already explained this.

Tracey again asked for a finalised letter after going through multiple HR individuals and them all saying something different. The next month she began to experience migraines that she believed to be connected to stress.

Further communication went back and forth between the employee and the employer. Information about the hours she had worked asked to be given again. Tracey felt upset about this as she had previously provided these on multiple occasions.

The employee asked again for clarification on her leave entitlement for next year. She then later sent an email of resignation and raised a formal grievance. The payroll department found that she was owed £9625.67 from miscalculated holiday pay.

A thorough grievance outcome proved that Acas had made errors and that the settlement had been paid to Tracey. This outcome was sent to her TU advisor as it was what Tracey had requested.

The advisor asked Acas for an extension for appealing after reading the outcome letter two months after it was emailed. Acas did not consent to the late formal appeal but said Tracey could send submissions through her solicitor and they would be reviewed.

Tracey didn’t take up this offer. She was later rewarded compensation of £24,847.58.

HR advice and support for employers

Holiday pay is something you should take seriously and ensure it is being properly managed. You do not want to risk the reputation of your business and if not done correctly you could be taken to an employment tribunal.

Just like in the Acas and Tracey case, you could end up paying a hefty sum of compensation leaving your business at risk.

We provide free support if you’re an employer and need advice on HR issues. We offer 24/7 help to guide you through the process.

Please speak to one of our HR and employment law advisors free at 0800 144 4050. Fill in the form here to request a callback.