Question:

 

Just wondering if I can get your advice on this one.

 

We have an employee you did not work out his notice period.  He has now left the company and has been paid out all hours worked up to his last day, however our HR person has advised us that we can hold back his holiday payout since he did not complete his notice period.  Can we legally do this?

If so, do we hold back the amount equivalent to the notice period he did not complete?

 

Answer:

You can only do this if you have a clause in your employment agreement or your employee has sign something that gives you consent to take this out of their final pay.  You cannot do this if you do not have the consent of the employee (Wages Protection Act 1983).

 

What you take out from his final pay would be defined in the clause or the consent they gave.  This is not law it is by agreement.  I would expect it would be just the notice period.