Benefits

Benefits

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.

Statutory paid holiday

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

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Employment News

Lords vote to create duty to probe whistleblowers concerns

Law360: Employers would be obliged to investigate concerns raised by whistleblowers under an amendment to the Employment Rights Bill (ERB) put forward by the House of Lords.

Acas publishes annual report for 2024 to 2025

Acas has published its annual report for from 1 April 2024 to 31 March 2025.

MPs launch inquiry into enduring disability employment gap

Law360: Senior MPs have launched an inquiry into the persistent gap in employment between people who are disabled people and non-disabled people, calling for evidence and ideas on how to close it as part of a broader push to address labour inequality.

DBT launches call for evidence on unpaid work practices

The Department for Business and Trade (DBT) has launched a call for evidence seeking views on unpaid internships and related work practices. The consultation examines five key areas: unpaid internships and internships paid below the National Minimum Wage (NMW), unpaid work trials and work trials paid below NMW, voluntary workers, volunteers, and work shadowing. The call forms part of the government's commitment to ban unpaid internships unless part of educational or training courses. Running from 17 July to 9 October 2025, the consultation targets input from individuals with direct experience, worker groups, employers, businesses, and subject matter experts. The Department aims to publish its response by February 2026.