The basic rule
Annual leave does not restrict the ability to resign or affect how notice runs. Written resignation starts the notice period from the date HR receives it, running in calendar days including leave days.
Effect on pre-booked holiday
Pre-booked holiday during the notice period is still valid. You take it as holiday, are paid for it as holiday, and the notice runs during those days. The employer cannot cancel the pre-booked holiday just because you have resigned. This is often useful - it lets you finish the notice period with reduced actual attendance.
Practical scenario
Employee has 4 weeks of contractual notice and 2 weeks of pre-booked holiday for the third and fourth week of that notice period.
| Week | Status | Pay |
|---|---|---|
| 1 | Working notice | Basic pay |
| 2 | Working notice | Basic pay |
| 3 | Pre-booked holiday | Holiday pay |
| 4 | Pre-booked holiday | Holiday pay |
| End of week 4 | Effective date of termination | P45 issued |
Accrued holiday continues to accrue
Statutory holiday continues to accrue during notice at 5.6 weeks per year pro-rata. Any accrued holiday not taken by the effective date of termination must be paid out in the final pay run. See holiday entitlement calculator.
Taking accrued holiday during notice
Where you have accrued but untaken holiday at the resignation date, you can request to take it during notice (with line manager agreement) or receive it as a lump sum payment in the final pay run. The employer can also require you to take accrued holiday during notice by giving twice the length of the leave as notice of the requirement.
Returning from holiday to notice
Where you resign during holiday and return before the notice period ends:
- Continue to work notice as normal from the return day.
- Complete handover during the working portion.
- Return company property on the final day.
- Cooperate with reasonable transition requests.
Resigning at the start of a long holiday
A common approach: resign on the day the annual leave starts, so most of the notice runs during the holiday. This works if:
- The pre-booked holiday is at least as long as the notice period.
- Handover is either not required or completed before the leave.
- Company property can be returned by post or on the final day.
Effect: employment ends at end of holiday with minimal actual working attendance during notice.
Sickness during annual leave during notice
If you fall genuinely ill during pre-booked holiday, you can convert holiday days to sick leave with fit-note support - the holiday is banked for later, and you get SSP or contractual sick pay for the sickness. During notice, this arithmetic still works but may not extend the notice period. Take advice if the sickness is likely to be long-term.
Useful calculators
- Holiday entitlement calculator
- Notice period calculator
- Final working day calculator
- PILON calculator
- Final pay estimator
Related guides
- Notice period rights UK
- Notice period letter template
- How much notice do I have to give
- Statutory notice period UK
- What happens to unused holiday pay
Authority pages
Frequently asked questions
- Can I resign while on holiday?
- Yes. Written resignation starts the notice period from the date HR receives it, running in calendar days regardless of whether you are on holiday. Pre-booked holiday continues as scheduled.
- Does pre-booked holiday count as working notice?
- The notice runs during pre-booked holiday days - they count toward the notice period elapsing. You take them as holiday, are paid for them as holiday, and the effective date of termination advances normally.
- Can my employer cancel my pre-booked holiday if I resign?
- No. Pre-booked holiday remains valid. The employer cannot cancel it just because you have resigned. It is paid as holiday and reduces the actual working attendance during notice.
- What about accrued but untaken holiday?
- Must be taken during notice (with line manager agreement) or paid out as a lump sum in the final pay run. The employer can also require you to take accrued holiday during notice by giving twice the length as notice of the requirement.
- Can I resign at the start of a long holiday?
- Yes and this is a common approach if the pre-booked holiday is at least as long as the notice period. Effect: employment ends at end of holiday with minimal actual working attendance during notice, provided handover is either not required or completed before leave.
Sources and further reading
- Working Time Regulations 1998 — Statutory holiday and holiday during notice.
- Employment Rights Act 1996, section 86 — Statutory minimum notice.
- ACAS — Free, impartial UK employment advice.
- ACAS: Holiday and holiday pay — Guidance.
- GOV.UK: Handing in your notice — Government guidance.
General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.