I’ve had a number of queries recently about holiday entitlements, compassionate leave, and time off for caring for disabled relatives—essentially, all the various reasons people may need time away from work. Having just returned from a holiday myself, I thought now was a good time to write a blog that explores this topic in more detail.
Annual Leave Entitlement for Part-Time and Variable-Hours Workers
One of the most common questions is how to calculate annual leave for part-time staff, particularly those on variable hours. UK law entitles all employees to 5.6 weeks of paid holiday per year (including bank holidays). This equates to 28 days for full-time workers in England and Wales.
For part-time or variable-hours staff, the entitlement is pro-rated and is usually best calculated in hours rather than days. This approach helps avoid confusion, particularly for irregular work patterns. If you’re unsure how to calculate leave entitlements, the Acas website is a great resource – or speak to an HR professional.
It’s also essential that entitlements and rules around holidays are clearly laid out in individual contracts of employment, so employees know how and when they can book time off.
Other Types of Time Off
In addition to annual leave, there are various forms of statutory time off that may apply, depending on an employee’s circumstances. A Statutory Time Off Policy can be extremely useful for outlining:
- Trade union duties and activities
- Roles such as safety representatives or elected employee reps
- Public duties (e.g., magistrates, councilors, jury service, reserve armed forces training)
- Time off for pension trustees
You likely already have separate policies for things like sickness absence, maternity/paternity, adoption, and parental leave. A Time Off Policy can act as a helpful signpost, directing employees to these other documents.
It can also include additional discretionary leave you may offer, such as:
- Compassionate leave
- Study leave
- Medical appointments
Larger organisations may have dedicated policies for each type of leave, but for smaller companies, a consolidated document can be just as effective.
Common Employer Questions About Annual Leave
What if someone falls sick while on holiday?
Your sickness absence policy should state that employees need to follow the usual sickness reporting procedures if they want to reclaim annual leave lost to illness. Similarly, your policy should clarify whether an employee on long-term sick leave can use annual leave to receive full pay instead of relying on Statutory Sick Pay (SSP) alone or using up company sick pay.
Can I deduct pay if someone leaves having taken more holiday than they’ve accrued?
Yes—but only if this is clearly stated in their contract. You can deduct pay for excess holiday taken, and conversely, you must pay for any accrued but unused leave. You may also prevent employees from using holiday during their notice period or require them to do so—but again, this must be specified in the contract.
What happens to annual leave if an employee dies while still employed?
This is understandably a sensitive situation. However, from a legal standpoint, their date of death is treated as the date their employment ended. You should calculate any outstanding holiday up to that date. If the contract allows for deduction of overused leave, this may be done. Final pay, including any outstanding holiday pay, should be processed through payroll and paid to the employee’s estate.
What About Unlimited Holiday Entitlement?
Some companies are now offering unlimited holiday, which can sound radical—or even reckless. Employers often worry that nobody will show up to work. But research shows the opposite: employees in these environments often take less leave, not more.
It’s important to understand that employees must still take at least the statutory minimum of 5.6 weeks per year. Employers have a duty to ensure this happens.
If you’re considering implementing an unlimited leave policy, keep the following in mind:
- Ensure you have clear performance expectations or KPIs in place. Holiday should be tied to output—employees can take leave so long as work goals are met.
- Be aware of potential issues, such as employees taking unusually long holidays. If that happens, have a conversation: Are they managing their workload? Is there a personal or health issue at play?
Despite the risks, unlimited leave can be a compelling recruitment and retention tool, especially for high-performing teams. It’s worth exploring if your culture supports autonomy and results-driven performance.
Final Thoughts
Time off isn’t just about holidays—it’s about supporting your team through life’s many stages and situations. Having clear, consistent policies in place helps everyone understand their entitlements and responsibilities.
If you’re considering a new approach to holiday entitlements (like unlimited leave), or have questions about statutory or discretionary time off, feel free to get in touch. A well-informed approach to leave can boost employee wellbeing, compliance, and productivity.
