Thinking of a summer getaway from work: a guide to annual leave

It that time of year when many employees will take advantage of their holiday entitlement to enjoy a well-earned break from work and head for sunnier climes.

Schools will shortly break up for the long summer holidays, and in the coming months good weather is virtually guaranteed in the most popular holiday hotspots.

It makes it an ideal time for employees to take advantage of their annual leave.

It can, or at least should, be a relaxing time during which you can switch off from work emails, leave your out of office response to deal with any messages, and allow your keyboard to gather dust.

Annual leave entitlement is a crucial aspect of employment law, ensuring that employees have the right to take time off work while still receiving pay.

It is not just a chance to bask in the sun, relax by the pool, go swimming in the sea, take a sightseeing trip or enjoy a few drinks, it is also a great opportunity to recharge those mental and physical batteries.

The demands of the modern workplace can feel like a never-ending treadmill. Annual leave is your chance to step off of it, breathe fresh air, and remember there is a world beyond the workplace.

The rules and regulations surrounding annual leave are designed to protect employees’ rights and promote a healthy work-life balance.

Here we take a look at annual leave entitlement, how it is calculated, and the importance of taking time off.

Statutory annual leave entitlement

Almost all workers are legally entitled to a minimum of 5.6 weeks of paid annual leave per year. It is known as statutory leave entitlement [1] cited 16.7.24

For a full-time employee working five days a week, this equates to 28 days of paid holiday annually. The entitlement includes bank holidays, which some employers will choose to count as part of the 28 days.

Part-time workers who work regular hours for the whole year are entitled to at least 5.6 weeks’ paid holiday, but this will amount to fewer than 28 days.

People working irregular hours or part of the year are entitled to up to 5.6 weeks statutory leave.

They will build up (‘accrue’) leave depending on the hours they have already worked, rather than getting a fixed number of days or hours.

The government provides a holiday entitlement calculator  that can be used to work out how much leave they have accrued in a pay period

Statutory paid holiday entitlement is limited to 28 days. For example, staff working six days a week are only entitled to 28 days’ paid holiday.

Bank holidays

If you are eligible for annual leave, then bank holidays will either be [2] cited 16.7.24

• Deducted from your annual leave allowance (so you’ll have to take all bank holidays as paid holiday)
• Counted as additional holiday days - you may or may not be paid for them

A contract of employment  should say which situation applies. If it does not, bank holidays will automatically be deducted from annual leave entitlement.

Many workplaces will close on bank holidays. Where a business is closed on a public holiday and an employee would normally work on those days, they will have to take them as paid holiday.

Additional leave

Employers can offer employees more than the statutory minimum leave.

Contractual leave is more than the required legal minimum and it can vary for a number of reasons and be dependent on the employment contract, industry norms or company policy.

Some employees will have a contract that gives them extra days off and that entitles them to additional paid holiday beyond the legal minimum.

Contractual leave can include extra days, public holidays, or specific leave arrangements, which are unique to your workplace.

An employer will often offer beyond the statutory minimum of 5.6 weeks of holiday pay and other holiday-related benefits, as it helps it to attract and retain top talent and create a more productive and engaged workforce.

Other types of additional leave can include:

• Reward leave: An employee benefits package can offer paid leave along with a range of other perks. Additional leave can also be provided as a reward for exceptional performance or long service.

• Holiday purchase schemes: Some employers will provide an opportunity that allows employees to buy extra leave days by sacrificing a portion of their salary.

• Special occasions: Additional leave can be given for life occurrences such as weddings or religious celebrations.

• Sabbaticals: Longer periods of unpaid leave lasting a few months can be offered at an employer’s discretion for personal development, travel, or rest [3] cited 16.7.24 . Employers do not have to offer career breaks. If they do, the policy must be clearly laid out e.g. in a staff handbook.

• Parental leave: Beyond statutory parental leave, employers can offer extended paid or unpaid leave for new parents [4]. Cited 16.7.24

• Study or training leave: Some employers will support employees’ professional development by allowing time off for courses or certifications.

Holiday pay

When an employee takes holiday, they should get paid in the same way that they would usually do when in work.

Some employers might offer better holiday pay schemes, which will be covered in the employment contract.

Holiday pay calculations can be based on days or hours worked per week, casual or irregular hours and shifts.

By law, holiday pay must include:

• Payments linked to doing tasks required in the contract, for example commission.

• Payments related to professional or personal status, for example for length of service, seniority or professional qualifications

• Other payments, for example overtime payments, if an employee has regularly been paid these during the last year

Employers must include any relevant payments in at least 4 weeks of holiday pay.

Some employers might include these payments in the full 5.6 weeks' paid holiday (statutory annual leave), but they do not have to. [5] cited 16.7.24

Booking and taking leave

Usually to book leave the employee will have to follow the appropriate process of the employer.

It typically involves submitting a request and it can either be approved or rejected based on business needs.

Employers should make sure employees take their statutory leave within the leave year and cannot replace it with a payment in lieu, except when employment ends.

It is important for both employers and employees to plan leave in advance to avoid disruptions and ensure that everyone gets the rest they need.

Carrying over leave

In some cases, employees may be allowed to carry over unused leave to the next leave year.

This can usually happen if an employee has been unable to take their leave due to illness or other exceptional circumstances.

The rules around carrying over leave are not set and can vary, and will be dependent on the specific terms of employment.

The importance of taking annual leave

Having regular breaks from work is vital for maintaining physical and mental health.

It provides employees with the ideal opportunity to relax, spend time with family and friends, and pursue personal interests.

This time away can also have benefits for an employer, as it can lead to increased productivity, creativity, and overall job satisfaction when employees return to their roles feeling refreshed.

Legal rights and disputes

Paid annual leave is a legal right, and employers must provide it.

If an employee believes their rights are not being met, there are several ways to resolve disputes.

Initially, it is advisable to discuss the issue with the employer. If this does not resolve the matter, employees should seek advice.

Finally

Understanding and managing annual leave is crucial for both employers and employees.

It ensures compliance with legal requirements, promotes a healthy work-life balance, and contributes to overall job satisfaction.

By providing adequate time off, employers can create a positive work environment and boost employee well-being.