The Holidays Act 2003 provides for the cashing up of annual holidays from 1 April 2011.
An employee who becomes entitled to annual holidays on or after 1 April 2011 is able to request cash of up to one week of their annual holidays during a 12 month period.
If an employee wishes to cash up to a week’s holiday they must request so in writing. A request can be made on one or more separate occasions until a maximum of one week has been paid out in the year of entitlement.
The employer has to advise the employee, in writing, and within a reasonable time whether the request will be granted. The employer is not required to give the employee a reason for declining the request.
If the employer agrees to pay out some annual leave of an employee the payment must be made as soon as practicable.
An employer is permitted to have a policy preventing employees from cashing up their annual leave.