Entitlement to Holiday Pay

kerchunky2010

Quick question...

I was out sick frm work for 10mths and decided to leave due to health problems and returning there wasnt good for me (stress etc)

Company didnt ask me to work out my notice and therefore issued me a P45

Now, am i entitled to any holiday pay etc? Or was this cancelled out as I didnt work my notice?

I was on a salary job.

Any advice would be great :-):D

Eoin

Two things might have happened - your leave was taken out of your notice period, or you didn't accrue much annual leave because you were out sick (link):

Sick leave and annual leave
If you are ill during your annual leave and have a medical certificate for the days you were ill, these sick days will not be counted as annual leave days. Instead, you can use these days as annual leave at a later date.

An employer cannot require you to take annual leave for a certified period of illness. However, illness during the leave year will reduce the total number of hours worked by you and may therefore affect your entitlement to annual leave under the Organisation of Working Time Act. For information about long-term sick leave and annual leave see ‘Further information’ below.

But if it's the former, then I'd have thought you should have been paid for that.

Have you asked them?

kerchunky2010

i'll be contacting them first thing monday morning!

heard today also that there was 8 redundancies and 10% paycut for rest of employees!

kerchunky2010

Company emailed me back:

Holiday is accrued on time worked basis, checking the calendar you would have been due 2 days holiday, and would also be due any public holidays in the period of sickness, these accrue to eight days.
However the sickness benefit you have received from Social Welfare is taxable, and this benefit has not been taxed, so if you could forward a statement of receipts for your sickness benefit we can calculate the amount of tax owed against the holidays due, and finalise with the Revenue.


Never heard such baloney in all my life!!!

Mrs OBumble

What do you think is baloney?

If it's the bit about the benefit being taxable, and their need to get the tax calcs right, then what they've said sounds right to me.

JustMary

JustMary wrote: »

What do you think is baloney?

If it's the bit about the benefit being taxable, and their need to get the tax calcs right, then what they've said sounds right to me.

Presumably that should have been done before they issued a P45 and not after the OP queried it.

Provide the numbers and see what they say - what will you do OP if they say you owe them (or the tax authorities) money?

Clauric

kerchunky2010 wrote: »

Company emailed me back:

Holiday is accrued on time worked basis, checking the calendar you would have been due 2 days holiday, and would also be due any public holidays in the period of sickness, these accrue to eight days.
However the sickness benefit you have received from Social Welfare is taxable, and this benefit has not been taxed, so if you could forward a statement of receipts for your sickness benefit we can calculate the amount of tax owed against the holidays due, and finalise with the Revenue.


Never heard such baloney in all my life!!!

Social welfare payment for illness is taxable. Assuming that you were out of work from May '11 to Feb '12 (10 months, then there could be a tax liability. From May - December '11, you would be entitled to the first 36 days (6 weeks as SW pay a 6 day week) tax free. Thereafter, from mid June to December '11 you would be liable for tax at the standard rate on your illness payments (this generally comprises a return of taxes in the first week after being taxed, especially if there is a big difference between what you were earning and the SW payments).

From Jan '11 to when your came off the payments, you would be taxed for the entire amount (a change in SW rules brought in in the last budget).

vikingdub

kerchunky2010 wrote: »

Company emailed me back:

Holiday is accrued on time worked basis, checking the calendar you would have been due 2 days holiday, and would also be due any public holidays in the period of sickness, these accrue to eight days.
However the sickness benefit you have received from Social Welfare is taxable, and this benefit has not been taxed, so if you could forward a statement of receipts for your sickness benefit we can calculate the amount of tax owed against the holidays due, and finalise with the Revenue.


Never heard such baloney in all my life!!!

Get yourself down to your nearest Citizens Information Centre or FLAC office. There is some new recent case law pertaining to sick leave and holiday accrual, which I think, but am not sure, favours the employee.

gozunda

Clauric wrote: »

Social welfare payment for illness is taxable. Assuming that you were out of work from May '11 to Feb '12 (10 months, then there could be a tax liability. From May - December '11, you would be entitled to the first 36 days (6 weeks as SW pay a 6 day week) tax free. Thereafter, from mid June to December '11 you would be liable for tax at the standard rate on your illness payments (this generally comprises a return of taxes in the first week after being taxed, especially if there is a big difference between what you were earning and the SW payments).

From Jan '11 to when your came off the payments, you would be taxed for the entire amount (a change in SW rules brought in in the last budget).

But if the OP was only getting Illness Benefit - then surely they would be earning too little to attract tax? Or have I picked you up wrong.

I believe that the OP states she is getting social welfare payments and not wages from their company whilst off sick

The OP did not return to work - so I presume she did not come off SW payments??

Clauric

gozunda wrote: »

But if the OP was only getting Illness Benefit - then surely they would be earning too little to attract tax? Or have I picked you up wrong.

I believe that the OP states she is getting social welfare payments and not wages from their company whilst off sick

The OP did not return to work - so I presume she did not come off SW payments??

Generally speaking as each case is different, if you get only Illness Benefit, and nothing else, then your tax liability will probably be zero. However, it will depend on your tax credits, the amount you have earned previously, dependents, etc.

All Illness Benefits (in fact all DSP payments) are subject to tax but most people don't get enough from DSP to qualify for tax.

gozunda

Clauric wrote: »

Generally speaking as each case is different, if you get only Illness Benefit, and nothing else, then your tax liability will probably be zero. However, it will depend on your tax credits, the amount you have earned previously, dependents, etc.

All Illness Benefits (in fact all DSP payments) are subject to tax but most people don't get enough from DSP to qualify for tax.

Understood...