Understanding Annual Leave in the UK: Rights, Benefits, and Entitlements

Annual leave is a core aspect of employment in the UK, providing workers with paid time off each year. Whether you are an employee or an employer, understanding the rules and rights surrounding annual leave is important, as it ensures you are getting – or giving – the correct entitlements, as per UK employment law.

This article explains what annual leave is, the entitlements under UK law, and how it can be managed effectively.

What is Annual Leave?

Annual leave refers to paid time off work that employees are entitled to take each year. It is a legal requirement under the Working Time Regulations 1998. This time off allows workers to rest, spend time with family, or address personal matters without losing income.

And that’s the important part – without losing income! Unlike some parts of the world where employers can choose to make all leave unpaid, the UK has long been an advocate of giving workers the right to paid time off.

For employers, managing annual leave effectively can be difficult, because you need to balance operational needs while ensuring employees are treated fairly. For employees, understanding leave entitlements is crucial to making the most of this benefit – as employers are not necessarily obliged to let you roll over your entitlement.

• Annual leave is calculated based on the hours or days an employee works.
• Employees are entitled to be paid their usual wage while on leave.
• Employers may offer additional leave as part of a benefits package.

How Much Annual Leave Are Employees Entitled To?

UK law provides full-time employees with 5.6 weeks of paid annual leave per year. This amounts to 28 days for those working a five-day week. Part-time workers receive leave on a pro-rata basis, reflecting the number of days or hours they work.

Here’s an article explaining how to calculate the pro rata entitlement.

Employers may include public holidays in the 5.6 weeks of leave entitlement, but this is not a legal requirement and depends on the employer’s policy. Both parties should agree on how this is managed, ideally during the onboarding process – and it should be explained as part of your company’s policies.

Entitlement does not get rolled over by law, although some employers will allow you to roll over some, or all, of your unused holiday entitlement, from one year to the next.

• A full-time employee working 5 days per week gets 28 days of leave.
• A part-time worker with a 3-day week receives 16.8 days of leave.
• Employers may allow employees to carry over unused leave to the following year, subject to their policy.

Rules for Taking Annual Leave

Both employees and employers need to follow certain rules to ensure fair and efficient management of annual leave. Employees must give notice before taking leave, typically twice as long as the duration of the requested leave – although this may be different depending on your company policy.

Employers may reject requests if they clash with business requirements, provided they give sufficient notice to the employee.

• Employers must have clear policies outlining how leave requests are managed.
• Employees should provide adequate notice for leave requests.
• Employers should keep accurate records of annual leave to ensure compliance.

To see if our HR system could help you manage your company’s annual leave, why not watch our 2-minute demo video now.

Benefits of Annual Leave

Annual leave benefits both employees and employers. Employees gain valuable time to rest and recharge, which contributes to improved physical and mental health. For employers, a rested workforce is often more productive, engaged, and satisfied with their job.

Encouraging regular use of annual leave helps maintain a positive workplace culture. It can also reduce the risk of burnout and absenteeism.

For more information, refer to the following official resources:

• Holiday Entitlement and Rights: www.gov.uk/holiday-entitlement-rights
• Advisory, Conciliation and Arbitration Service (ACAS): www.acas.org.uk/holiday-entitlement