Holiday (Annual Leave) Policy Template for UK Businesses
A holiday policy sets out your employees' entitlement to annual leave, how to book it, and the rules around carry-over, payment in lieu, and public holidays. Under the Working Time Regulations 1998, all workers are entitled to a minimum of 5.6 weeks (28 days for full-time employees) of paid annual leave per year. The Employment Rights Bill is introducing further reforms, including changes to holiday pay calculation for irregular hours workers and the rolled-up holiday pay provisions.
Who Needs This Policy?
Every UK employer must provide annual leave under the Working Time Regulations 1998. This applies to all workers — not just employees — including part-time workers, zero-hours contract workers, agency workers, and casual workers. Part-time workers' entitlement is calculated pro rata. The right to 5.6 weeks' paid leave cannot be replaced by a payment in lieu except on termination of employment.
What's Covered
This holiday (annual leave) policy template covers 13 key sections:
Purpose
This policy sets out the holiday entitlements, booking procedures, and rules for employees and workers of [your details]...
Scope
This policy applies to all employees and workers of [your details], including full-time, part-time, fixed-term, and zero...
Policy Statement
[your details] will ensure that all employees and workers receive at least the statutory minimum paid annual leave as re...
Holiday Entitlement
The statutory minimum holiday entitlement under the Working Time Regulations 1998 is 5.6 weeks per year. For a full-time...
Bank and Public Holidays
There is no statutory right to time off on bank or public holidays. [your details] [your details]. There are normally 8...
Booking Holiday
Employees must request holiday in advance and obtain approval from their line manager before confirming any travel arran...
Carry-Over of Unused Holiday
[your details] encourages employees to take all of their holiday entitlement within the holiday year. Under the Workin...
Holiday Pay
Holiday pay is calculated in accordance with the Working Time Regulations 1998 and relevant case law. Holiday pay is b...
Holiday During Notice Periods
Employees who are working out their notice period (whether they have resigned or been dismissed) are entitled to continu...
Sickness During Holiday
If an employee falls ill during a period of pre-booked holiday, they may choose to reclassify the period of illness as s...
Roles and Responsibilities
is responsible for: - Ensuring all employees and workers receive their correct holiday entitlement - Calculating holida...
Related Policies
This policy should be read alongside the following policies: - Health and Safety Policy - Flexible Working Policy - Sic...
Review
This policy will be reviewed annually, or sooner if there are changes to the Working Time Regulations, holiday pay case ...
Legal Framework
This policy template is grounded in the following UK legislation and guidance:
- Working Time Regulations 1998 (SI 1998/1833), regs.13-16
- Employment Rights Act 1996, ss.13-27 (protection of wages)
- Working Time (Amendment) Regulations 2007
- Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018
- Stringer v HMRC [2009] (carry-over during sick leave)
- Bear Scotland Ltd v Fulton [2015] (overtime in holiday pay)
- Harpur Trust v Brazel [2022] (part-year workers)
How Complaiance Helps
Our holiday (annual leave) policy goes beyond a generic template:
- Compliant with Working Time Regulations 1998 including the latest holiday pay reforms
- Pro-rata calculations for part-time and irregular hours workers built in
- Clear rules on carry-over reflecting the Plumb and Smith v Zippo case law on sickness
- Public holiday handling options including bank holiday substitution for diverse workforces
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Get Started FreeFrequently Asked Questions
How much annual leave are UK employees entitled to?
All workers are entitled to a minimum of 5.6 weeks of paid annual leave per year under Regulation 13 and 13A of the Working Time Regulations 1998. For a full-time worker (5 days per week), this equals 28 days including bank holidays. Employers can include bank holidays within the 28-day entitlement. Part-time workers receive a pro-rata entitlement. There is no statutory entitlement beyond 5.6 weeks.
Can unused holiday be carried over to the next year?
Under the basic Working Time Regulations, the 4 weeks derived from EU law (Regulation 13 leave) cannot be carried over unless the worker was unable to take it due to sickness or maternity leave. The additional 1.6 weeks (Regulation 13A leave) can be carried over if the employer agrees. Following the Plumb and Smith v Zippo line of case law, workers on long-term sick leave can carry over Regulation 13 leave for up to 18 months.
Are employers required to give bank holidays off?
No. There is no statutory right to time off on bank holidays. Employers can require employees to work bank holidays and give alternative days off, or include bank holidays within the 28-day minimum entitlement. The Working Time Regulations 1998 simply require 5.6 weeks of paid leave — how that is allocated is for the employer to decide, subject to the employment contract.