Q: An employee has annual leave pre-approved for two weeks starting in two weeks’ time, today they have handed in their resignation with the notice period of 4 weeks as per their employment agreement with an end date of the last day they are on annual leave.  Can the notice period fall within a period of annual leave or are they required to extend their notice period to two weeks following the end of their leave period?

A: If the employee has now resigned the agreed notice period would take preference only the annual holidays booked as it has been agreed in the employment agreement that notice is worked. 

Up to the business to decide best course of action, such as doing a payment in lieu of notice (if that is an option in the employment agreement or policy) and get rid of them now and pay out the leave they were to take, notice etc in their termination pay.  The one issue of have seen is if you need them at work and they want to go they can cause you issues on the way out.