Impact on NMW - Buying & Selling Holidays

EnPointe

Trixy said:

Thank you both.

Having followed the link from Marcon, I can see that using salary sacrifice can mean the employees salary drops below NMW so it looks like we need to revisit this for staff unless I'm reading this wrong.

buying holiday ios not  salary Sacrifice , it is a  way of  reducing your annual working hours . 

 the ability to take the 'extra leave' is built into  your contract rather  than ad hoc unpaid leaves  if there is leave available in the  rota  but you have used your standard allocation of leave 

EnPointe

kimwp said:

NMW is an hourly rate. Presumably the holidays are bought at the same hourly rate as the employee is paid - if so, then the employee's wage per hour will be unchanged if they buy holiday. They will be paid less, but will work fewer hours.

exactly this