HR Fact: Managing Annual Leave Carry Over – Key Rules Every UK Employer Should Know
HR Fact: Managing Annual Leave Carry Over – What Employers Must Know
Content:
Under UK law, all employees are entitled to a minimum of 5.6 weeks’ paid annual leave per year, as outlined in the Working Time Regulations 1998.
While most employers encourage employees to use their full entitlement, there are occasions where leave can be carried over to the next holiday year. The rules depend on the reason for the carry-over:
✅ Standard holiday policy: Employers may allow limited carry-over (typically up to 1.6 weeks) by agreement.
✅ Sickness absence: Employees unable to take leave due to sickness can carry over up to four weeks for 18 months.
✅ Maternity or parental leave: Leave missed due to family-related absence can also be carried forward.
Failing to manage holiday correctly can lead to breaches of employment law and potential tribunal claims.
At Consensus HR, we help SMEs create clear, legally compliant annual leave policies that protect both the business and employees while encouraging a healthy work-life balance.
Comment from Matthew Chilcott – Owner:
“Annual leave management might seem straightforward, but the rules around carry-over can catch employers out. Having the right policy in place keeps your business compliant and your team motivated.”
👉 Learn more about HR compliance: www.consensushr.com
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