Payment in Lieu of Untaken Holiday – Is it Legal?
Published on: 18/07/2017
Article Authors The main content of this article was provided by the following authors.

"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 its

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Disclaimer 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. This article is correct at 18/07/2017