The Leave Owing report provides an estimate of the holiday pay owing to all your staff at a selected date.

As well as being useful for managing leave entitlements, this report is also used by some clients to include in their profit and loss accounts a charge for accrued holiday pay. The figure produced is an excellent estimate.

We are sometimes asked why the value of holiday pay showing on the Leave Owing report is different from an employee's final pay when using the As Per Act calculation method.

The Holidays Act entitles an employee to different amounts of holiday pay based upon their circumstances when the holiday is taken, and the calculation methods are completely different depending on whether the employee is terminating their employment, or merely taking holidays.

This is the cause of the discrepancy, and is the reason why the Leave Owing report is merely an excellent estimate.

The problem does not arise if using the Percentage of Gross method for holiday pay calculation.