Can an employer pay an employee in lieu of annual leave that has accrued while the employee was on sick leave?

Posted in : First Tuesday Q&A NI on 7 February 2017
Chris Fullerton
Arthur Cox NI
Issues covered:

The Working Time Regulations (Northern Ireland) 2016 provide that an employee’s statutory holiday entitlement may not be replaced by a payment in lieu, except where the worker's employment is terminated. If you pay a worker in lieu, rather than allowing them to take their holiday in a given leave year, you will breach the legislation.

If it is not possible for an employee to take their holiday entitlement in a given leave year in this context, you will be required to allow carry-over to the next leave year. The case law from the Court of Justice of the European Union has made it clear that employees must be allowed to carry leave over to the next leave year if required, so as not to lose

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Back to Q&A's This article is correct at 07/02/2017

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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

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