Holiday Pay

Annual Leave and leaving employment

It is illegal under the Organisation of Working Time Act, 1997 for an employer to pay an allowance in lieu of the minimum statutory holiday entitlement of an employee unless the employment relationship is terminated. In general, your annual leave is calculated on the basis of hours worked.

Compensation is payable by the employer to an employee where the employee ceases to be employed and any portion of the annual leave accrued by the employee in that leave year remains to be granted to the employee. If the employee ceases to be employed in the first half of a leave year then the employer is obliged to compensate the employee for any annual leave which has been accrued by the employee in that leave year and the previous year but has not yet been granted to the employee at the time of cessation of employment.

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