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Annual Leave Entitlement

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Annual Leave Entitlement

SECTION GUIDE

What is annual leave entitlement?

Annual leave entitlement is the total amount of paid holiday an employee is legally or contractually entitled to take each year. It covers both statutory entitlement under UK law and any additional leave an employer may offer as part of their benefits package.
Annual leave is one of the most important workplace rights, designed to ensure staff can rest and recover, reducing the risk of burnout and improving wellbeing.

What does annual leave entitlement mean in HR?

The Legal Framework

  • Under the Working Time Regulations 1998, all workers are entitled to 5.6 weeks of paid annual leave per year.
  • For a full-time employee working five days a week, this equals 28 days’ leave per year.
  • This statutory entitlement may include the 8 UK bank/public holidays, depending on the employer’s policy.
  • Part-time employees receive a pro-rata entitlement, based on the number of days or hours they work.
  • Casual and zero-hours workers accrue annual leave based on hours worked, often calculated at 12.07% of hours worked.

Beyond the Minimum

Many employers choose to offer enhanced annual leave entitlement as part of their benefits package. For example:

  • Additional days after a certain length of service
  • “Birthday leave” or wellbeing days
  • Buy/sell leave schemes to give staff flexibility

  • Why does annual leave entitlement matter for your business?

    • Compliance – Failing to provide statutory annual leave can lead to tribunal claims and financial penalties.
    • Wellbeing and productivity – Time away from work helps employees recharge, reducing sickness absence and improving engagement.
    • Recruitment and retention – Enhanced annual leave packages are a popular benefit and can give employers an edge in the job market.
    • Business planning – Managing leave properly ensures you have enough cover during peak holiday periods.

  • Best practices for employers

    • Have a clear annual leave policy – Explain entitlement, notice periods, carry-over rules, and treatment of bank/public holidays.
    • Pro-rata calculations – Ensure part-time and irregular staff receive a fair and accurate entitlement.
    • Track leave accurately – Keep clear records of entitlement, accrual, and usage to avoid disputes.
    • Manage carry-over carefully – Usually, 20 of the 28 statutory days must be taken within the leave year, but carry-over is allowed in limited circumstances (e.g. sickness or maternity leave).
    • Communicate entitlement – Include annual leave entitlement clearly in contracts and reinforce it during onboarding.

Your Questions Answered

FAQs on annual leave entitlement

  • What is the minimum paid holiday entitlement in the UK?Reveal

    5.6 weeks (28 days for a full-time employee), which can include bank holidays.

  • What happens to annual leave when an employee leaves?Reveal

    Employers must pay staff for any accrued but untaken leave at the end of employment.

  • How is annual leave calculated for zero-hours workers?Reveal

    They accrue leave based on the hours they work, often calculated at 12.07% of hours worked.

  • Do part-time staff get the same annual leave entitlement?Reveal

    Yes, but calculated on a pro-rata basis according to their working pattern.

  • What is the statutory annual leave entitlement in the UK?Reveal

    5.6 weeks (28 days for a full-time worker), which may include bank/public holidays.

Where to find out more A collection of hand-picked useful resources on annual leave entitlement from impact HR and beyond

Need support with managing Annual Leave Entitlement?

Whether you’re updating HR or Health and Safety policies, training managers, or handling complex employee issues, impact HR can help you stay compliant, confident, and in control. Request a callback to see how we can support your business.

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