 | I read that under the new Holidays Act an employee can sell a holiday day back to an employer? Is this true? |
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No, that is not true. An employee cannot sell a holiday day back to an employer under any circumstances.
The only sort of day that can be "sold back" to an employer is an Alternative Holiday, previously called a Lieu Day. The day must
have arisen through the employee working on a public holiday, and not taken the day allowed within 12 months of falling due.
Alternative Holidays are covered from Section 56
onwards, and the provision to sell an Alternative Holiday is Section 61.
Annual Holidays cannot be exchanged for payment. Section 16
covers the entitlement to annual holidays, and subsection 4 quite clearly states
(4) An employee's entitlement to annual holidays remains in force until the
employee has taken all of the entitlement as paid holidays.
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This may have implications for those employers with "use it or lose it" clauses
in their Employment Agreements relating to annual holidays. | |
Holidays Act 2003
52 week history not required
Holiday pay entitlements