Whether leave accumulates depends on whether the employee works out the notice period or not.

Employee works out notice period

Leave will accumulate up to the employee’s last day of work.

Employee doesn’t work out notice period

Leave won’t accumulate over the notice period if an employee gets a payment in lieu of notice.

Example

Gary is given 3 weeks’ notice by his employer.

If his employer asked him to work out his notice period, he would accumulate leave entitlements during that time.

However, if Gary’s employer pays out his notice instead of asking him to work, Gary won’t accumulate any leave on this notice period.

Any annual leave accumulated prior to Gary’s dismissal needs to be paid to Gary when he finishes work.