Annual Leave Requests: Employer's Guide to Managing Holiday

Managing holiday requests fairly keeps employees happy while ensuring business cover. A clear process helps avoid disputes.

The Legal Framework

Statutory Entitlement

All workers entitled to:

• 5.6 weeks' paid holiday per year
• 28 days for full-time (includes bank holidays if you count them)
• Pro-rata for part-time

Notice Requirements

Statutory default (if contract silent):

• Employee notice: 2x length of leave
• Employer counter-notice: 1x length of leave

Example:

• 1 week holiday = 2 weeks' notice
• Employer can refuse with 1 week counter-notice

Your Policy Can Override

You can set different requirements in your policy:

• Longer/shorter notice periods
• Approval process
• Restrictions on certain dates
• Maximum concurrent days

Creating a Fair Policy

What to Include

Entitlement:

• Total days
• Whether bank holidays included
• Part-time calculation
• When year runs

Booking process:

• How to request
• Notice required
• Approval authority
• Waiting time for decision

Restrictions:

• Blackout dates
• Maximum at once
• Minimum concurrent leave
• Peak period rules

Carry-over:

• Whether allowed
• How much
• When to use by
• Exceptional circumstances

Other rules:

• Cancellation
• Sickness during leave
• Buying/selling leave
• Bank holiday alternatives

Communicate Clearly

Ensure all employees:

• Know the policy
• Understand process
• Know who approves
• Have access to check balance

The Request Process

Best Practice

1. Employee submits request

   • Via system or form
   • With required notice
   • States dates clearly

2. Manager reviews

   • Check cover
   • Check other requests
   • Check business needs
   • Consider fairness

3. Decision made

   • Within reasonable time
   • In writing
   • Reason if refused

4. Records updated

   • Approved leave logged
   • Balance adjusted
   • Team calendar updated

Approving Requests

Consider:

• Is cover adequate?
• Who else is off?
• Any business restrictions?
• Have they had fair share of popular dates?
• Are they low on remaining leave?

Approve if:

• Cover available
• No business reason to refuse
• Fair treatment

Refusing Requests

Legitimate reasons:

• Insufficient cover
• Peak business period
• Too many already off
• Too short notice
• Project deadline

Not legitimate:

• Personal dislike
• Discriminatory reasons
• Punishment
• No reason at all

Counter-Notice

If refusing, give counter-notice:

• Equal to period requested (statutory)
• Or per your policy
• Before leave would start

Managing Clashes

Multiple Requests for Same Period

Common during:

• School holidays
• Christmas
• Bank holiday weekends
• Summer

Resolution Options

First come, first served:

• Simple and clear
• Rewards early planning
• May disadvantage some

Rotation system:

• Take turns for popular dates
• Fairer over time
• More complex to administer

Seniority:

• Longer service gets priority
• Clear hierarchy
• May breed resentment

Discussion:

• Employees work it out
• Collaborative
• May not reach resolution

Best Approach

Combination:

• Set some rules (blackouts, limits)
• First come for normal periods
• Rotation for Christmas/peak dates
• Fallback to manager decision

Document Decisions

Keep records:

• Who requested what
• When requested
• Decision made
• Reason for any refusal
• Evidence of fairness

Carry-Over Rules

EU-Derived Leave (4 weeks)

Generally must be taken in leave year.

Can carry over if:

• Sick and couldn't take it
• On maternity/parental leave
• Employer prevented taking it

Cannot simply choose to carry over.

UK Additional Leave (1.6 weeks)

Can agree in contract/policy to:

• Allow carry-over
• Or not

Practical Policy Options

No carry-over:

• Use it or lose it
• Clear
• May cause year-end rush

Limited carry-over:

• E.g., 5 days maximum
• Flexibility
• Avoids hoarding

Full carry-over:

• Very flexible
• Risk of large build-up
• Liability on books

What Happens to Unused Leave

If employment ends:

• Payment for accrued but untaken leave
• Or deduction if taken more than accrued
• Policy should allow this

Bank Holidays

Options

Included in entitlement:

• 28 days total (including 8 bank holidays)
• Closed on bank holidays
• Worker must take them

In addition to entitlement:

• 20 days + bank holidays
• More generous
• Clearly stated

Flexible bank holidays:

• Can work and take elsewhere
• Good for diverse workforce
• Administrative complexity

Religious Holidays

Consider allowing:

• Swapping bank holidays
• Flexible use of leave
• Accommodating requests
• Avoiding indirect discrimination

Peak Periods

Managing Business Needs

If you have blackout periods:

• State clearly in policy
• Apply consistently
• Business justification
• Some flexibility for emergencies

If limited capacity:

• Set maximum off at once
• Rotation for popular dates
• Early booking window

Christmas Shutdown

If you close:

• Tell employees early
• Specify dates
• Leave comes from entitlement
• State in contract/policy

If skeleton staff:

• Fair rotation system
• Volunteers first
• Transparent selection

Sickness and Holiday

Sick Before Holiday

If employee is sick before booked leave:

• They can cancel holiday
• Take as sick leave instead
• Rebook holiday later

Sick During Holiday

If employee falls ill during holiday:

• Can reclaim those days
• Subject to your policy
• May require evidence
• Take holiday later

Your Policy

Can require:

• Immediate notification
• Medical evidence
• Specific process
• Reasonable requirements

Part-Time and Variable Hours

Calculating Entitlement

Part-time (regular hours):

• Pro-rata calculation
• Based on days or hours worked
• Include bank holidays fairly

Variable hours:

• Accrual method
• 12.07% of hours worked
• Or reference period average

Booking Leave

Hours-based may be clearer:

• 140 hours annual leave (5.6 weeks x 25 hours)
• Book in hours
• Flexibility on days

Day-based for regular patterns:

• X days per year
• Standard calculation

Monitoring and Reporting

Track

• Leave balances
• Requests and approvals
• Peak period distribution
• Carry-over amounts
• Year-end position

Review

• Are requests being handled fairly?
• Any patterns of concern?
• Is policy working?
• Employee feedback

Checklist

Policy Requirements

• Entitlement clearly stated
• Notice requirements defined
• Approval process clear
• Restrictions documented
• Carry-over rules stated
• Bank holiday treatment
• Communicated to all staff

Handling Requests

• Respond in reasonable time
• Consider all factors
• Treat fairly
• Give reasons if refusing
• Document decision
• Update records

Year-End

• Check balances
• Remind about unused leave
• Apply carry-over rules
• Process any payments
• Reset for new year