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Registration Number: {{org_field_registration_no}}

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Holiday Entitlement Policy

1. Purpose

The purpose of this policy is to provide a clear and structured framework for holiday entitlement at {{org_field_name}}. This policy ensures full compliance with UK employment laws, specifically the Working Time Regulations 1998, and guarantees that all employees and workers understand their holiday rights, entitlements, and the process for requesting leave. {{org_field_name}} strictly adheres to this policy, and any deviation will require approval from senior management.

2. Scope

This policy applies to all employees, workers, and agency staff engaged by {{org_field_name}}, including those on full-time, part-time, fixed-term, temporary, and zero-hours contracts. It sets out the exact holiday entitlement and booking process that must be followed.

3. Statutory Holiday Entitlement

All employees and workers at {{org_field_name}} are entitled to 5.6 weeks (28 days) of paid holiday per year, inclusive of bank holidays. Statutory holiday entitlement is 5.6 weeks; bank holidays are not an additional statutory entitlement and may be included within the 5.6 weeks. The specific entitlements based on employment type are as follows:

• Full-time employees (working five days per week) are entitled to 28 days of paid leave per year, including bank holidays unless otherwise specified in their contract.
• Part-time employees receive a pro-rata entitlement based on the number of days worked per week. For example, an employee working three days per week will receive 16.8 days of annual leave (3 x 5.6 weeks).
• Irregular hours workers and part-year workers (as defined by the Working Time Regulations 1998) accrue statutory holiday at 12.07% of hours worked in each pay period, capped at 28 days (5.6 weeks) per leave year, for leave years beginning on or after 1 April 2024. For workers who are not irregular hours workers or part-year workers, holiday entitlement is calculated in weeks/days based on working pattern and/or contractual hours.
• Agency workers are entitled to statutory paid annual leave from day one under the Working Time Regulations 1998. In addition, after completing a 12-week qualifying period in the same role with the same hirer, eligible agency workers gain equal treatment rights relating to key working conditions (which can include annual leave arrangements) under the Agency Workers Regulations 2010.

Under no circumstances will an employee receive less than the statutory entitlement. Contracts may offer additional holiday entitlement, but this must be clearly stated in writing.

Definitions

 An “irregular hours worker” is a worker whose paid hours are wholly or mostly variable in each pay period during the leave year.

A “part-year worker” is a worker who is required to work only part of the leave year and there are periods within that year of at least a week when they are not required to work and are not paid.

4. Holiday Calculation and Accrual

• Holiday entitlement starts accruing from the first day of employment.
• Holiday accrues at a rate of 1/12th of the total annual entitlement per month.
• Employees on maternity, paternity, adoption, or shared parental leave continue to accrue holiday at the same rate as if they were actively working.
• Fixed-term employees will receive a pro-rata entitlement based on the length of their contract.

Irregular hours and part-year workers: For leave years beginning on or after 1 April 2024, statutory holiday for irregular hours workers and part-year workers accrues at 12.07% of hours worked in each pay period (subject to the statutory cap of 28 days per leave year). Accrual during sick leave and statutory leave is handled in accordance with the Working Time Regulations provisions that apply to these categories.

5. Booking and Approval of Holiday Leave

• Employees must submit holiday requests at least twice the length of the requested leave in advance (e.g., two weeks’ notice for one week of leave).
• All holiday requests must be submitted in writing via the company’s designated system or email and must be approved by the employee’s line manager before being confirmed.
• Approval is subject to business needs, and requests will be granted on a first-come, first-served basis.
• Employees must not book holidays (e.g., flights or accommodation) before receiving formal approval.
• If an employee submits excessive or last-minute holiday requests, the request may be denied.
• Management reserves the right to limit the number of employees taking leave simultaneously, especially during peak business periods.

6. Carrying Over Unused Holiday

• Employees must use their full holiday entitlement within the leave year (1st January to 31st December).
• Carryover of up to 5 unused holiday days is permitted but only if the employee has been unable to take leave due to business needs. Any carried-over leave must be used within the first three months of the new leave year (by 31st March).
• Statutory holiday may also be carried over where a worker has been unable to take some or all of their statutory entitlement due to statutory family-related leave or where the Company has not recognised the worker’s right to paid annual leave, has not given a reasonable opportunity to take paid annual leave, and/or has not encouraged the worker to take paid annual leave. In such cases, statutory holiday will be carried over in line with the Working Time Regulations 1998 and applicable guidance.
• Employees who were unable to take statutory leave due to long-term illness may carry over up to four weeks of leave, in line with legal requirements.
• Unused holiday cannot be exchanged for additional pay, except when employment is terminated.

Where the worker is an irregular hours worker or part-year worker, carry-forward operates in accordance with the specific Working Time Regulations provisions that apply to those categories for leave years beginning on or after 1 April 2024.

7. Holiday Pay

Holiday pay is paid in accordance with the Working Time Regulations 1998 (as amended).

• Workers with fixed hours and fixed pay: Holiday pay is paid at the worker’s usual rate for the period of leave.
• Workers with variable pay and/or variable hours: Holiday pay is calculated using the worker’s average pay over the last 52 weeks in which pay was actually received. Weeks in which no pay was received are ignored, and earlier paid weeks are used instead (looking back up to a maximum reference period where needed).
• Statutory holiday pay and “normal remuneration”: Where required by law, holiday pay must reflect the worker’s normal remuneration, which can include elements such as regular overtime, regular allowances, and commission or other payments that are regularly received.
• Rolled-up holiday pay (irregular hours and part-year workers only): For leave years beginning on or after 1 April 2024, the Company may use rolled-up holiday pay for irregular hours workers and part-year workers where appropriate. If used, holiday pay will be paid as an additional identifiable amount alongside pay for work done (rather than being paid when leave is taken). Rolled-up holiday pay does not remove the requirement for workers to be able to take statutory leave.

Holiday pay is not paid in lieu except on termination of employment/engagement.

8. Bank Holidays

• Bank holidays are included in the annual leave entitlement unless specified otherwise in the contract.
• Employees who are required to work on a bank holiday will receive either additional pay or time off in lieu (TOIL), as agreed with management.
• If a bank holiday falls on a non-working day, the employee is not automatically entitled to an extra day off unless their contract states otherwise.

9. Holiday Entitlement During Notice Periods

• Employees who resign or are dismissed must take their remaining holiday before their final working day, or they will receive payment in lieu for any unused statutory holiday.
• If an employee has taken more holiday than they have accrued, the company reserves the right to deduct the excess holiday pay from their final salary.
• Management may require an employee to take holiday during their notice period by providing at least twice the amount of notice as the leave required (e.g., two weeks’ notice for one week of leave).

10. Unauthorised Holiday Absence

• Employees who fail to attend work without prior holiday approval will be considered absent without leave (AWOL).
• Unauthorised absences may result in disciplinary action, up to and including dismissal.
• Employees who falsely claim sick leave to extend their holiday may be subject to gross misconduct proceedings.

11. Policy Review

This policy will be reviewed at least annually and earlier where there are changes to legislation, statutory guidance, or case law affecting holiday entitlement and holiday pay. Any amendments will be communicated in writing to all employees.

This policy is strictly enforced, and all employees are expected to comply. Any failure to adhere to the holiday booking process or misuse of holiday entitlement may result in disciplinary action.

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Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
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