Employees can ask their employer to pay out in cash, up to one week of their four weeks’ minimum entitlement to annual holidays per year for each entitlement year. They can do this all at once, or can make multiple requests to cash-up until the entire one week is cashed up. Some employees do not or rarely take annual leave, so they will negotiate with their employers and require one week of annual leave to be paid directly in the form of wages.
An employer can’t:
- pressure an employee into cashing up holidays
- raise it in wage or salary negotiations
- make cash up a condition of employment
- put a cash up request into an employment agreement, but can include the process for making a request.
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