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Annual leave buy back

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
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  • Hello Rebecca, when I worked at Pennine Acute Hospitals NHS Trust, we had a scheme. Contact the corporate HR dept they should be able to help you with your enquiry.
  • 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.