Most companies’ holiday years run from January to December and, although it is unlikely that staff have holidays left to take, there may be a few who have, for whatever reason, been unable to take their full annual leave entitlement. So as a company, what do you need to do?
How Many Holiday Days Are Employees Entitled to?
Legally, all workers are entitled to 5.6 weeks paid holiday per year. This is known as their ‘statutory entitlement’. 5.6 weeks, for a full-time employee working 5 days per week, equates to 28 days per year including bank holidays.
If a business is closed on bank holidays, then the employee’s contract may state that they are entitled to 20 days plus bank holidays. Some companies offer more annual leave, and this is fine, but they cannot offer less.
Do You Have to Take Annual Leave?
You cannot pay a worker for any untaken annual leave. This can only be done upon termination of employment. Furthermore, workers must take at least four weeks statutory leave (that is 20 days holiday - including bank holidays) in each leave year. You can allow them to take all or some of the remaining leave over. However, it is important that you check your Staff Handbook and Contracts of Employment to see what these state.
Some companies allow for workers to carry over up to 3 days leave into the following leave year, whereas others do not allow any – ‘use them or lose them’. It is important that your company policy is made clear to all staff and you are consistent to all workers.
The ‘use them or lose them’ philosophy is fine provided that the individual has not taken their leave due to being on maternity leave, shared paternity leave or long-term sick. If this is the reason then different rules apply, please get in touch with our employment solicitors in Cardiff and we can offer you guidance.
