Buying and Selling Annual Leave Policy
1. Introduction
2. Scope
3. Principles
4. Buying and Selling Annual Leave
5. Applying to Buy or Sell Annual Leave
6. Process to Buy Annual Leave
7. Process to Sell Annual Leave
8. Consideration of Application
9. Declining an Application
10. Roles and responsibilities
11. Worked example
1. Introduction
At Jollyes we are committed to ensuring colleague’s can have a healthy work life balance.
2. Scope
This policy applies to all colleagues employed by Jollyes
3. Principles
The key principles of this policy are to set out the guidance for colleagues who wish to buy and sell annual leave.
4. Buying and Selling Annual Leave
This is an arrangement between Jollyes and the colleague whereby additional annual leave can be bought or sold. All requests will be given consideration during specific windows throughout the year as detailed by the business. All annual leave requests will be subject to the company guidance on leave and the protocols operating within each function.
The window for buying and selling holiday is July and November each year
The People team must receive the fully approved application no later than the 5th of July and the 5th November each year.
5. Applying To Buy or Sell Annual Leave
Any colleague can apply to buy or sell annual leave provided that they:-
• Have 26 weeks continuous service with the company
• Do not exceed the limits set out in Section 6 and 7 of this policy
• The colleague completes a Holiday Buy Sell Request Form.pdf
• Have the application form signed by their line manager and Regional Manager / Head of Function before sending to the People Team
• Send the signed application to the People Team, people@jollyes.com
6. Process To Buy Annual Leave
Colleagues will sign up to a 12 month agreement and will not be able to change their mind partway through a year. The scheme means that:-
• Colleagues can purchase up to 5 days holiday (dependant on contracted hours). This will mean that they are changing their holiday entitlement for the year
• There will be no ability to sell back any unused holiday at the end of the year
• Any colleague employed on a fixed term contract can buy holiday if their contract runs for at least a complete holiday year
• The holiday entitlement for leavers, including any holiday they have bought, will be calculated up until their leave date. Any outstanding balance will be adjusted in their final
pay. Colleagues will always be asked to take holidays during their notice period wherever possible.
• In the unlikely event that holiday has been carried over from the previous year and the colleague has requested to purchase holiday, then the sum of carry over and buy must not exceed one week
• Colleagues cannot be permitted to reduce their salary below national minimum wage levels
• Annual leave is bought at average daily rate x hours bought
7. Process To Sell Annual Leave
Colleagues are able to sell annual leave if they meet the following criteria:-
• Colleagues can only sell a maximum of 5 days
• Colleagues who have a holiday entitlement of 29 days (inclusive of bank holidays) will only be able to sell one days holiday (due to statutory regulations surrounding the number of days annual leave to be taken)
• Annual leave is sold back to the colleague at average daily rate x hours sold and is subject to tax and NI deductions
• On applying to sell annual leave, the People team can provide accurate calculations of the gross sell rate
• Colleagues must not reduce their annual leave below the statutory allocation (28 days including Bank Holidays)
• Colleagues must leave enough holidays to cover the Statutory Bank Holidays
• Late applications would not be considered past the ‘Holiday Buy and Sell’ window
8. Consideration of Application
The line manager should consider the application on an individual basis taking into account:-
• The needs of the business plus any additional cost that the business would incur in temporary labour
• Any other annual leave that is currently planned across the team
• Ensuring the colleague has planned in the rest of their holiday entitlement
9. Declining an Application
If a line manager declines a request they must communicate to the colleague in writing, outlining why the request has been declined and specifying the business reason
10. Roles and Responsibilities
Colleague
• Read and understand the Buying and Selling Annual Leave Policy
• Complete the Buying or Selling Annual Leave Form
• If a request to Buy leave is accepted complete the holiday request section in iTrent
Line Manager
• Review and understand the Buying and Selling Annual Leave Policy
• Where authorised approve colleague requests for holiday in iTrent
• If a holiday buy / sell request is denied, communicate in writing to the colleague the business reasons why the request was declined
People Team
• Review the Buying and Selling Annual leave policy periodically and in line with legislative changes
• Provide support and advice to colleagues and managers in the execution of the policy
• Communicate the Holiday Buy / Sell Leave Window each year
11. Worked Example
The worked examples are based on a salaried full time colleague and an hourly paid colleague
For full time colleagues, the cost of a day’s holiday will be their annual basic salary divided by 260 (no. of working days in a year). The total annual cost of holiday bought will be divided by 12 and their pay will be reduced by that amount each month.
Salaried colleagues
For example: Basic Salary is £30,000 and 3 days purchased
1 days holiday = £30,000 / 52 weeks / 5 days = £115 (gross)
Total cost of buying 3 days holiday = £115 x 3 = £345 (gross)
Salary is reduced by £345 / 12 = £28.75 (gross) each pay date
(Pro-rata for part time employees)
Hourly paid colleagues (example of a colleague on 20 minimum contracted hours per week)
For example: 1 days holiday = contracted hours 20 x 5.8 / 29 days = 4 hours
Total cost of buying 3 days holiday = 4 hours x current pay rate (example £11.44) x 3 days = £137.28 (gross)
Salary is reduced by £137.28 / 12 = £11.44 (gross) each pay date
Policy Owner Claire Goldenberg / Linda Pandeli