Summary
- Full-time employees in the UK are entitled to 5.6 weeks (28 days) of paid annual leave per year, with part-time entitlements calculated by multiplying days worked per week by 5.6, and employers may choose whether to include public holidays within this statutory entitlement.
- Employers can require employees to take annual leave at specific times, including during Christmas shutdowns or quiet business periods, provided the requirement is reasonable, non-discriminatory, and supported by clear written rules in employment contracts or staff handbooks.
- Where no written rules exist, employers must give notice at least twice the length of the leave period being directed, and can only require employees to take unpaid leave during shutdowns if the employment contract explicitly permits this.
- This article is a guide to annual leave entitlements and employer obligations for UK employers, explaining statutory requirements and the rules around directing employees to take holiday leave.
- LegalVision is a commercial law firm that specialises in advising clients on employment law and workplace compliance matters.
Tips for Businesses
Document all annual leave rules, restrictions, and shutdown periods clearly in employment contracts or staff handbooks before directing employees to take leave. Apply leave policies consistently and fairly across your workforce. Give employees adequate notice when requiring them to take leave, ensuring it meets the statutory minimum of double the leave period being directed.
UK employers must provide staff with paid annual leave, but managing when and how employees take that leave can raise complex legal questions. Understanding your rights and obligations as an employer is essential to staying compliant and maintaining a productive workplace.
In the UK, employers have a legal obligation to provide their staff with paid annual leave. Understanding the nuances of this requirement is crucial for maintaining compliance and fostering a positive work environment. While most employees eagerly use their holiday allowance, situations may arise where staff members are reluctant to take time off.
Additionally, some employers may operate shut-down periods over Christmas or industry-specific times during the year. This can create challenges for employers who must balance workplace productivity with legal obligations and employee well-being. This article explores the statutory leave entitlements for UK employees and addresses a common question faced by many employers: Can you require your staff to take their annual holidays?
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What is the Legal Annual Leave Entitlement?
Full-time employees have the right to a statutory leave entitlement of 5.6 weeks or 28 days per year. You can calculate the necessary leave amount for part-time workers by multiplying the number of days they work by 5.6. For example, someone working three days per week would be entitled to 16.8 days of statutory leave per year.
If an employee works more than a five-day week, there is no legal requirement to increase their annual leave entitlement. However, some employers may provide additional annual leave beyond the statutory minimum as an employment benefit. Furthermore, it is at your discretion whether to include public holidays as part of your employee’s statutory annual leave entitlement. If you elect to do this and expect staff to work on a bank holiday, you must provide them with a day off instead of that holiday.
Generally, when an employee requests leave, they must give double the notice period for the number of days they want. Therefore, requesting two days of leave would require four days’ notice.
What Rights Do Employees Have?
In addition to the existence of a statutory (legal) leave entitlement, employees also have the right to:
- receive pay whilst on annual leave;
- build up their annual leave whilst taking other forms of leave such as any maternity leave; and
- receive payment in lieu of any accrued but unused holiday upon termination of employment.
Generally, unless you provide your employees with the option to carry over their unused holiday allowance in their employment contract, all holidays accrued during the year must be used within the same holiday year.
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Can You Force an Employee to Take Their Annual Leave Entitlement?
Despite the rights afforded to employees in terms of holiday entitlement, you also have rights as an employer. In addition to employee health benefits, unused annual leave appears to be a cost on the business’s profit and loss statement (P&L), so many companies prefer employees to use their leave during the financial year.
As an employer, you can also request when employees take their holiday leave. Providing such a request is reasonable and does not discriminate. You may use this right where, for example, you want to ensure employees take a holiday at Christmas, especially if this is a quiet period for the business.
On the contrary, you want to ensure all business areas are adequately covered at one given time and encourage your staff to rest and reset.
What Limits are in Place?
Some rules surround your right to force employees to take annual holidays. For example, you must:
- record rules relating to when employees can take their leave, as well as any restrictions, within their employment contract or a separate staff policy or handbook;
- include your own fixed leave in any written rules – otherwise, where you do not have your own leave year, there are separate rules regarding when this would be for an employee; and
- ensure all rules are clear, justified, and applied consistently and fairly.
Where there are no written rules, you must legally give an employee double the notice required per day of leave. Therefore, if you ask your employee to take three days’ leave, you should give them six days’ notice.
You are also entitled to force an employee to take unpaid leave during a shutdown. However, you can only do this if the employment agreement with the relevant employee allows for this action.
Key Takeaways
You are legally obliged to encourage employees to take their annual holidays. There are rules surrounding statutory holiday leave and rights afforded to both you and the employee. As part of these, you can force an employee to take annual holidays at a chosen time. You can also refuse the dates that the employee requests. However, you must know that rules surround how you force an employee to take annual leave.
If you need help with your employee’s annual holidays, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced employment lawyers help businesses across industries manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Employers must give notice at least twice the length of the leave period. For example, for 1 week of leave, at least 2 weeks’ notice is required.
While technically possible, it’s generally not advisable. Employers should aim for a balanced approach that allows employees to spread their leave throughout the year.
Multiply the number of days a part-time employee works per week by 5.6. For example, an employee working three days per week receives 16.8 days of statutory annual leave per year.
Yes, but only if the employee’s employment agreement explicitly permits this. Without a contractual provision allowing unpaid leave during shutdowns, employers cannot require employees to take unpaid leave.
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