An employee has asked if they can cash up some Annual Leave. Can they do this?

Employees in New Zealand are entitled up to four weeks of paid holidays each year, but employees may have the choice to reduce their annual leave by up to one week each calendar year and have this paid out in cash instead.

Known as ‘cashing up’ holiday pay, the benefit is not a legal requirement, and employers should be aware of the restrictions surrounding the process should they choose to offer it.  You may like to think about including a cashing up policy in an employee handbook to clarify your position.