Payment in Lieu of Untaken Holiday – Is it Legal?

"We recently purchased a business via a share sale. The transaction was rushed and little due diligence was carried out before the sale took place. Now that I have reviewed personnel files, I have discovered that employees were being paid in lieu of their annual leave without the employees actually having taken that leave. I don’t think this is legal – how do I handle it?"

Entitlement

Firstly, you should remind yourself what period of annual leave an employee is normally entitled to. A regular five-day-per-week employee is entitled to a minimum of 28 days paid annual leave per year, and part time employees should receive a pro-rata amount based on that.

Of course, an employer can require