When should annual holiday pay be paid?
Employees are entitled to receive their pay for annual holidays before the holiday commences, unless the employer and employee agree that the normal pay cycle will continue undisturbed by the time off work.
This provision is designed to ensure that employees have money available to them to pay for the travel and accommodation expenses involved in a holiday, which often are required either at the start of a holiday or in advance.
If an agreement is reached to pay the employee any annual holiday pay in their normal pay cycle, it is advisable to record it either as part of the employment agreement or in writing on a case-by-case basis.
