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From 1 April 2011 it is legal for an employee to cash up to one week of their 4 week entitlement annual leave each year and take the money rather than a holiday. If you provide more than 4 weeks of leave, your employee may request to cash up the extra leave as well. For example, if you allow your employees 5 weeks of leave, they may request to cash up 2 weeks of leave.
A request to cash up annual leave must be made in writing by the employee, and you must respond in writing. You can deny the request.
The decision to cash up leave must be informed and voluntary. You cannot make an employee cash up annual leave.
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