Annual leave and holiday questions answered

Taking time off isn’t just a perk; it’s a legal right. However, it can be confusing navigating your rights when it comes to annual leave, carrying holiday over, navigating Christmas shutdowns, and more, as the rules aren’t always clear or straightforward. In this blog, we will break down the most common annual leave and holiday questions and help you understand your legal entitlements.

Your holiday entitlement by law

Every worker, whether they are full-time, part-time, or under a zero-hour contract, has the right to ‘statutory annual leave’, also known as paid holiday. The exact number of days or hours is calculated based on how many hours they work, or as agreed with their employer.

Employees are entitled to 5.6 weeks’ paid holiday per year; however, this is worked out based on their circumstances. For example, for someone working full-time (5 days a week), you multiply the number of days worked by 5.6 to get the number of days they are entitled to. In this case, and for most full-time roles, it is 28.

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TOP 3 holiday questions

Can your employer require you to take a holiday at specific times?

Essentially, yes. However, this will be stated in your employment contract. Your contract may have a clause that requires you to take holiday days at certain periods, for example, during a Christmas shutdown where you use a few holiday in between Christmas and New Year, but an employer must explain this right to you.

Can I lose my holiday if I don’t take it?

Many employees believe that they will lose their holiday if they don’t take it within the year, but this is simply not true. If you don’t use your holiday, you can carry it over. Any clause in your employment contract that states that if you don’t use it, you lose it is invalid.

Can I be paid for any unused holiday?

During your employment, you cannot be paid your holiday allowance. If your employer pays you for it, you still don’t lose it. At the end of your employment, you are entitled to be paid for any holiday that has accumulated but not been used.

Asking and taking holiday

When asking for holiday, you should make sure to ask for holiday dates as far in advance as possible so that the employer can make any arrangements necessary. By law, workers must ask for holiday at least twice the number of days before as the number of days they want to take off. However, it’s best practice to ask as soon as possible to increase the likelihood of it being accepted.

An employer has the right to refuse or cancel any holiday, as long as they let the employee know at least the same amount of time before as requested, but there should be a good business reason to refuse or cancel.

Bank holiday and Christmas

Whether an employee has to work bank holidays and the Christmas period is up to the employer. Businesses in the hospitality industry are more likely to be open during these times, and annual leave will be needed to ensure they have this time off.

Employers should always:

  • Explain the rules for bank holidays
  • Regularly discuss how upcoming business closures or busy periods might affect holidays

Creating effective holiday policies

As an employer, you employees have a statutory right to paid holidays. However, you must ensure your holiday policy is clear and fair so that they are aware of their rights throughout their employment, as this avoids confusion, prevents disputes, and ensures understanding. Here’s what you should include:

  • Clear entitlement information
  • Rules for requesting leave
  • Carry-over and unused leave
  • Restrictions and blackout periods
  • How holiday interacts with sickness and statutory leave
  • Payment rules
  • Promoting fairness and consistency

With all of these elements, you’re on track to create an effective holiday policy.

How 365 employment law can help with your holiday issues

Whether you’re dealing with carry-over rules, Christmas shutdowns, holiday disputes, or creating a fair holiday policy for your employment contract, we can help. 365 Employment Law is experienced and trained in dealing with employment holiday entitlement, and we’re here to guide you through it. Contact us today to ensure your team is happy.

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