I think this is an excellent policy.
Employees will be able to trade their fourth week of annual holidays for cash by next year, Prime Minister John Key said today.
This way, if there is some level of compensation that the employer is willing to make, and the employee is willing to accept, they can trade away the additional week of leave. I would be very keen to trade-in a week of leave for cash most of the time – as I enjoy doing economics so much anyway 😉
Generally, I am a big fan of giving people flexibility in the labour market (both employers and employees) and this policy increases flexibility for both parties. Excellent 🙂