A colleague is being sued by her former company for breach of contract. She left their employment giving only two weeks notice instead of the contractually required 1 month. The company are looking for damages due to loss of profit over the two week period and have notified her that they intend to withhold accrued holiday to offset against the amount claimed although they would not let her offset against her unworked notice period! They intend to pay all other monies due and claim back.

Can they withhold accrued holiday payments?

Rob Rees