Payment in lieu of Holiday outstanding on the Death of an Employee

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Very sadly, we had a recent situation where an employee of one of our clients very suddenly passed away. The question arose as to whether or not his wife should be paid in lieu of the holiday he had accrued but not taken at the time of his death.

Our advice to the employer was to “be reasonable” and to make this payment which they did.

Interestingly, this situation has recently been highlighted in a European Court of Justice case in Germany (Stadt Wuppertal v Bauer and Willmeroth v Broßonn 2018) where the Court stated that a payment must be made to the deceased’s estate in lieu of any untaken holiday, together of course with a payment in relation to all outstanding salary, overtime payment, commission and bonuses.

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