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The Benefits To Employers Of Buying Holidays

Published 01 Apr 2011

Employers are advised that the main benefit in buying back a week’s holiday is in attracting a week’s production. Obviously when staff are away on holiday the cost of wages is only part of the real cost. The employer also loses a week’s production.

There are several areas to consider - not the least of which is health & safety. There will be several positions in various businesses that are more stressful and demanding than the average. If this is a consideration the employer is better off protecting the employee. Many employers willingly give some employees well in excess of the 4 weeks and have done so for many years. On the whole though, where we have a position that did not cause stress or adverse health issues for the last 20 years with only 3 week’s as an entitlement, then buying back the 4th week might well make sense.

Just to remind members - employers cannot ask employees if the employer can buy back any annual holidays. Employees can apply.

The ‘two continuous weeks’ rule still applies if an employee requests it. (I.E. Employees must be given the opportunity to take at least two of the four weeks’ holidays continuously)

Employers may well introduce a policy stating they will not give consideration to buying back a week’s holiday (or less). Those employers who are uncertain of exactly what the effects will be on their business are better off implementing a policy to not consider applications.