Is an employee automatically entitled to an allowance in lieu of annual leave? What if they chose not to take their accrued annual leave during their employment?Posted in : First Tuesday Q&A ROI on 3 July 2018
An employer may only pay in lieu of annual leave for days in excess of the statutory minimum or on termination of employment. The actual taking of leave is the rule and the allowance in lieu is the exception.
A recent opinion from the Court of Justice of the EU in the joined cases C-619/16 (Sebastian W. Kreuziger v Land Berlin) and C-684/16 (Max-Planck-Gesellschaft zur Förderung der Wissenschaften eV v Tetsuji Shimizu) noted that the entitlement to an allowance in lieu of annual leave is not lost automatically because an employee did not apply for the leave during their employment. If, however, the employer has taken appropriate steps to ensure the worker can avail of the leave and the
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