Employers and employees alike may benefit from substituting part of the employee's wages with various forms of payment in kind. This is because a large employer may be able to use its bulk spending power to buy insurance or vehicles more cheaply than an individual. Also, the tax treatment of certain benefits in kind is more beneficial to the employee than of payments in cash. The employer may also choose to provide the employee with more generous rights than the statutory minimum, for example to offer a contractual benefit of more days of paid holiday entitlement than is required under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833.
Holiday benefits both employers and workers by allowing workers a period of relaxation and recuperation and holiday entitlement is often perceived as a key benefit by many employees.
WTR 1998, SI 1998/1833 (which implements Directive 2003/88/EC, the Working Time Directive and so is assimilated law—see Practice Note: Assimilated law) provides workers with a statutory entitlement to paid holiday. The right is to a total of 5.6 weeks' annual leave each 'leave year', made
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