Bizstartup.ie - Organising holiday leave

During the summer season, almost every employee will want to take some annual leave so as to enjoy a break from their work environment. While this practice is well regulated in Ireland, inevitably some employers will experience difficulties and so the information provided in this article (sourced generally from the National Employment Rights Authority) aims to reduce such possibilities.

There are three different ways of calculating an employee’s annual leave entitlement:

• An employee who has worked at least 1,365 hours in the leave year (that is, an average working week of 26.25 hours) is entitled to the maximum of four weeks' annual leave;
•  Allow 1/3 of a working week for each calendar month in which the employee has worked at least 117 hours; or
•  Allow 8pc of the hours worked in the leave year, subject to a maximum of four weeks. An employee may use whichever of these methods gives them the greater entitlement, and an employee who has worked for at least eight months is entitled to an unbroken period of two weeks' annual leave. It is illegal to pay an allowance in lieu of the minimum statutory holiday entitlement of an employee unless the employment relationship has been terminated.

Deciding when leave can be taken

An employer can decide when holiday leave may be taken, but this is subject to a number of conditions.  For example, an employer must take into account an employee’s family responsibilities and the opportunities available to them for rest and recreation.

This means that an employer should consult with the employee at least one month before holiday leave is to be taken.  In addition, all annual leave should be taken within the appropriate leave year or, with the employee’s consent, within six months of the relevant leave year.

Irish employees are also entitled to nine public holidays during the year, in respect of which an employer may choose to give an employee one of the following four options:

• a paid day off on the day;
• a paid day off within a month;
• an extra day of paid annual leave; or
• an extra day's pay. In order for a part-time worker to qualify for a public holiday, he/she must work at least 40 hours in the five-week period that immediately precedes the public holiday.

What about pay?

Pay in respect of annual leave is paid in advance at the normal weekly rate. If an employee’s pay varies because, for example, of commission or bonus payments, the pay for their holidays is the average of their pay over the 13 weeks before they take holidays.

Annual leave is not affected by other leave provided for by law. Time spent on maternity leave, adoptive leave, parental leave, force majeure leave and the first 13 weeks of carer's leave is treated as though an employee has been in employment and this time can be used to accumulate annual leave entitlement.

It is also illegal for an employer to pay an allowance in lieu of the minimum statutory holiday entitlement of an employee unless the employment relationship is terminated. If a person is leaving a job then they are entitled to receive payment for any outstanding annual leave and public holidays due to them.

Obliged to keep records

Employers are obliged to keep records of holidays and public holidays for a period of three years. Records should also be maintained to show as evidence in the event of a Rights Commissioner or Labour Court investigation of an employee’s complaint. For further information about holiday leave and other related matters, employers should go to www.employmentrights.ie.