Hi,
Does anyone have a scheme where employees can essentially buy annual leave?
Just wondering what are some of the implications for payroll etc... and what kind of procedure others use?
Thanks
I've introduced this in a few places. Guidelines are simple:
1. Holiday can only be bought or sold from the *following* holiday year, not from the current one.
2. Holiday can only be sold down to the statutory minimum.
3. There's no practical limit to how much can be bought, but I tend to limit it to five days, pro rata.
The advantages (for the employee) to buying extra holiday are twofold: (1) the cost is spread over the working year rather than falling in a single month, as would be the case with unpaid absence; and (2) the price is fixed at the point of purchase so, if the employee gets a pay rise or promotion during the period, the cost of the extra holiday doesn't change.
I've introduced this in a few places. Guidelines are simple:
1. Holiday can only be bought or sold from the *following* holiday year, not from the current one.
2. Holiday can only be sold down to the statutory minimum.
3. There's no practical limit to how much can be bought, but I tend to limit it to five days, pro rata.
The advantages (for the employee) to buying extra holiday are twofold: (1) the cost is spread over the working year rather than falling in a single month, as would be the case with unpaid absence; and (2) the price is fixed at the point of purchase so, if the employee gets a pay rise or promotion during the period, the cost of the extra holiday doesn't change.
