If a part-time employee works on an hourly basis (not fixed hours, but approximately the same number of hours per week) and they request to be paid in lieu of their annual leave, can we lawfully do so?

Posted in : First Tuesday Q&A NI on 3 April 2017
Chris Fullerton
Arthur Cox NI
Issues covered:

Under the Working Time Regulations (Northern Ireland) 2016, workers are entitled to four weeks’ annual leave in each leave year and, while leave may be taken in instalments, it may not be replaced by a payment in lieu except where the worker’s employment is terminated.

The European Court of Justice has further ruled in Federatie Nederlandse Vakbeweging v Netherlands [2006] that laws which allow workers to receive payment in lieu of annual leave carried over from the previous year breaches the Working Time Directive.

Therefore, it would likely be a breach of the Working Time Regulations for an employer to pay an employee in lieu of their annual leave entitlement.

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Back to Q&A's This article is correct at 03/04/2017

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Chris Fullerton
Arthur Cox NI

The main content of this article was provided by Chris Fullerton. Contact telephone number is 028 9023 0007 or email Chris.Fullerton@arthurcox.com

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