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
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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