How can an employee cash up annual holidays?

If you choose to offer cashing up, it is important to remember that an employee can ask for the full cash amount or make multiple requests until their week’s worth of annual leave has been cashed up.

An employee must be employed for at least 12 months to qualify, and submit the cashing up request in writing. When calculating the amount to pay, you must follow the same steps as if the employee was taking a holiday. The amount cashed out cannot be any less than the amount an employee would receive while on a paid holiday.

You must consider each request and respond within a reasonable timeframe. The answer can be ‘yes’ or ‘no’ and you do not have to give a reason for the decision, but it must be responded to in writing.

If you agree, you must cash out the annual leave as soon as possible, preferably within the next pay period.