Blog Post
Holiday and Carryover
- By Sarah Wilkinson
- •
- 25 Apr, 2017
A quick guide for a new leave year
Many businesses' leave year runs from 1 April or 1 May, and if this applies to your business you will no doubt be in the thick of holiday administration or have just completed it!
Workers (including employees) are entitled to four weeks' holiday per leave year under the Working Time Regulations (WTR). They are also entitled to the normal equivalent of public and bank holidays each year in England and Wales, which brings the total to 5.6 weeks' leave per leave year. The legal provision for the carryover of leave into the next leave year is only applicable in the following instances:
- If the worker falls ill whilst on annual leave, they may under certain circumstances claim back the annual leave that had been booked (and if they have a 'fit note' from their GP)
- 5.6 weeks' annual leave can be carried over for maternity, paternity, shared parental and adoption leave (or on a pro rata basis for leave less than 12 months).
However, some businesses choose to allow a proportion of annual leave to be carried over and used within the early part of the following leave year. This could either be for those who were unable to take annual leave due to business restrictions, or for the entire workforce. Alternatively, annual leave may be on a 'use it or lose it' basis, so if workers don't use all of their entitlement, they aren't able to carry it over.
Annual leave is not permitted to be exchanged for Payment in Lieu of Notice (PILON) except for when employment is terminated.
When an employee hands in their notice of resignation you will need to calculate their pro rata annual leave entitlement and how much they have taken vs leave accrued. At S Wilkinson Consulting we have many years' experience in the design and implementation of employment contracts including holiday/carryover clauses and calculating the payment or deduction of annual leave (and/or any other salary sacrifice benefits). Please contact us on sarah@swchr.co.uk or 07891 698981 and we will be more than happy to help!
Workers (including employees) are entitled to four weeks' holiday per leave year under the Working Time Regulations (WTR). They are also entitled to the normal equivalent of public and bank holidays each year in England and Wales, which brings the total to 5.6 weeks' leave per leave year. The legal provision for the carryover of leave into the next leave year is only applicable in the following instances:
- If the worker falls ill whilst on annual leave, they may under certain circumstances claim back the annual leave that had been booked (and if they have a 'fit note' from their GP)
- 5.6 weeks' annual leave can be carried over for maternity, paternity, shared parental and adoption leave (or on a pro rata basis for leave less than 12 months).
However, some businesses choose to allow a proportion of annual leave to be carried over and used within the early part of the following leave year. This could either be for those who were unable to take annual leave due to business restrictions, or for the entire workforce. Alternatively, annual leave may be on a 'use it or lose it' basis, so if workers don't use all of their entitlement, they aren't able to carry it over.
Annual leave is not permitted to be exchanged for Payment in Lieu of Notice (PILON) except for when employment is terminated.
When an employee hands in their notice of resignation you will need to calculate their pro rata annual leave entitlement and how much they have taken vs leave accrued. At S Wilkinson Consulting we have many years' experience in the design and implementation of employment contracts including holiday/carryover clauses and calculating the payment or deduction of annual leave (and/or any other salary sacrifice benefits). Please contact us on sarah@swchr.co.uk or 07891 698981 and we will be more than happy to help!