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

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

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

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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