Managing employee holiday entitlement : A comprehensive guide

Managing employee holiday entitlement can be a tricky task for any business, especially when dealing with requests for time off during peak periods or clashes between employees.

Whether you are an HR director, manager or business owner, this guide will provide you with valuable insights on how to handle holiday requests effectively and ensure the summer period is productive for your business whilst allowing your employees to also spend time with their families.

Employee Holiday Entitlement – Common Questions

As the summer holiday period approaches, our experts Charlotte Farrell and Tabytha Cunningham consider common questions regarding employee holiday entitlement.

1. Can you allow an employee to work from abroad?

Yes, you can allow an employee to work from abroad as long as proper consideration is given to all the legal implications of the arrangements before agreeing to it. It is important to consider legal factors such as whether the employee has the legal right to work in the country they are proposing to work from, any tax implications for both parties and any risks of creating a business establishment in the other country through the work the person is doing. If the employee is proposing to work from abroad for extended periods, it’s also important to consider whether the person would be subject to the local employment laws and make sure those are followed as well as any UK laws which apply to them. There are also practical points to consider, including the differences in time zones, internet connectivity, insurance, data protection issues and how they will be monitored and supervised whilst working abroad.

If it is agreed that an employee can work from abroad, it’s important to provide them with written confirmation of any terms that you have agreed with them and any conditions they must meet to avoid any misunderstandings and ensure there is a clear agreement between the employer and employee.

2. How do you deal with a request for an extended period of time off during a new starter’s probationary period?

When dealing with a request for extended time off during a new starter’s probationary period, it is essential to communicate openly with the employee. The approach you take may depend on the reason for the request and whether they explain it in their interview, or when offered the job, or wait until they have started to discuss it with you. Some businesses will find it easier than others to accommodate long periods of leave and provide cover for employees who are off work. Agreeing to long periods of holiday during probationary periods also carries a higher risk than agreeing to such requests for long standing employees. An employee in their probationary period will not have accrued long periods of holiday pay and if, for any reason, they don’t pass their probationary period the employer would need to recoup any extra holiday they had taken from their final pay packet. Other options to consider when a probationer requests extended leave are unpaid leave or adjusting their start date to accommodate their request while ensuring that the needs of the business are also met.

It is worth asking all new starters, when completing their paperwork, whether they have any pre-booked holiday they would like to be honoured so that any existing issues can be discussed at an early stage.

3. Can you require an employee to take annual leave at a certain time to avoid holiday clashes?

Yes, as an employer, you can require employees to take annual leave at a certain time to avoid holiday clashes. You can either do this by rejecting annual leave requests where they clash or by notifying employees of dates when you would like them to take their leave. Employers can do this by giving an employee twice as much notice as the period of leave they would like them to take. For example, for a 2 week holiday an employer would need to give 4 weeks notice. The same time frames apply if an employer wants to cancel a request it has already accepted.

If your business requires a minimum number of people to be at work at any given time or you have specific rules about when holiday can be taken, we would also recommend you are open and upfront about this. Introducing a holiday policy explaining the key criteria, how decisions will be made and any rules around taking holiday will help manage employee expectations and avoid frustrated employees and difficult conversations with staff.

Some industries find a holiday shut down period is a useful way of managing competing holiday requests during popular holiday periods. This only works where the type of business is able to accommodate a business shut down. It is more common during Christmas and New Year but can work well during the summer period as well, when it coincides with the school holidays.

Employees are free to book holiday outside that period as well but it can enable all those who wish to take holiday during school holidays with their family to do so with a planned skeleton staff left in charge; or no staff at all if the business completely closes.

4. Can employees ask to cancel their leave and move it if they no longer want it at the time they originally applied for?

Technically yes. However, there is no legal requirement on employers to allow employees to do this and as employers can choose when employees take their leave, they could refuse to change the holiday request if there are good business reasons to do so. A word of warning for employers though, if the reason for asking to change leave is connected to a protected characteristic there could be a risk of discrimination claims if an employer doesn’t handle the request appropriately.

If employers face regular requests to change booked holiday they may want to consider introducing a policy setting out the general principles they will apply when considering whether or not requests to change holiday will be approved. For example, a limit on the number of times a request can be made in any holiday year or the timeframes within which a request can be made.

In practice though, as long as the request does not cause difficulties for the business many employers will allow employees to change their holiday requests up to the time they are due to take it.

5. What should I do if all my employees want to take time off at the same time?

If all your employees want to take time off at the same time, consider implementing a fair system such as first-come-first-serve basis or rotating shifts among employees. You could also encourage advance planning and communication among team members to minimize conflicts over holiday requests.

This is a very company specific decision. It will depend on the needs of the business. To ensure there is at least a minimum level of service, you could grant leave on the basis of ‘first come, first served’ or consider allowing people to choose between the different weeks so everyone is able to take leave over the summer period. Alternatively, if an employee does not get the time off they requested during one holiday period they could be given priority over the next popular period or the same time next year. For example if someone got their first choice of a 2 week holiday in 2024, their colleagues could be allowed to choose their holiday first for 2025 to ensure everyone gets a fair chance at booking holiday when they want it.

If the nature of the business means that it is not that busy during the summer period, it could consider closing down for a few days and making it mandatory for people to take time off.

Line managers should also encourage advance planning and communication among team members to minimise conflicts over holiday requests. A transparent holiday booking system where everyone’s needs and wishes are listened to and met, where possible, is likely to lead to a more cohesive and committed team than one where people fight each other for holiday each year and are left feeling disheartened and disappointed by decisions that are made.

6. Can a request for annual leave be refused?

Employers are well within their rights to refuse a request for annual leave from an employee where there is a good business reason for doing so, for example if they are asking to take time off during a busy period for the business or when several other employees will also be on holiday. However, employers are not allowed to prevent workers from using their full annual leave entitlement within the holiday year. Employers can also cancel pre-booked holidays, although if they do so they must give staff at least the same days’ notice as the original holiday request. For example, where someone has booked 10 days off, their employer must give notice of cancellation at least 10 days before the holiday starts. Of course, the impact on morale and employer relations should be considered before taking such steps and shouldn’t be done without a clear need to do it.

If a business faces having to refuse a request for annual leave, it is important to consider any other alternatives and discuss it openly with the affected employees to try and find a solution.

7. What options are there if an employee has run out of holiday but needs to take time off?

If an employee has run out of holiday entitlement but needs to take time off, they may be able to request unpaid leave or family friendly leave. For example, if the leave is to look after a child, parents are entitled to take up to 4 weeks unpaid parental leave (until they reach the maximum of 18 weeks per child in total).

Depending on the reason for the time off, employers may also want to explore temporary flexible working arrangements such as working remotely or adjusting working hours to enable the employee to take the time off they need but still meet the needs of the business.

8. Are there rules on when it is too hot to work?

This is commonly asked in offices over the summer months but there is no legal maximum working temperature. However, when the weather is hot, businesses must consider the health and safety of their workers and ensure that the temperature in any workplace is reasonable. There is no clear guidance on what this means as the Health and Safety Executive Guidance refers to temperatures of “at least 16°C” or “13°C if much of the work involves rigorous physical effort” and is focused on making sure the workplace isn’t too cold instead.

Issues for businesses to consider include introducing air conditioning, providing fresh and clean air, providing fans, allowing flexibility in start and finish times to minimise travel time in the heat, allowing increased home working, relaxing dress codes and addressing any hot spots in the workplace where the temperature is higher than elsewhere. Offering ice-creams or refreshing drinks to staff may also be a nice wellbeing initiative to introduce. If employees work outside, ensuring they have regular breaks, sun protection and access to enough water is also key. It is very easy to become dehydrated when working in high temperatures and the consequences can be catastrophic.

Risk assessments should also be carried out for any employee with a health condition which may be affected by the heat and any suggested reasonable adjustments should be carefully considered.

9. Can we recruit young people to fill gaps during the summer months?

This is a tempting approach to take; covering the popular holiday periods for full time staff with lower paid summer temp staff or students. In theory where a business is able to do so it can be a useful solution. However, it won’t work for all businesses, particularly those which require skilled workers or specific training.

There are also restrictions on the hours and tasks a young person can do and it’s important not to be inadvertently caught out by these.

Whilst businesses need to be careful not to give individuals a discrimination claim based on their recruitment practices, from a legal and practical perspective the best age group for these types of short term roles are those who are 18 years or older; i.e. those who have finished their A-levels or are already University students. There are fewer rules affecting their employment.

To comment briefly on some of the key issues to think about when employing young workers:

• There are only very limited situations in which it is possible to employ a child under 14 years of age. Employers need specific advice on the situation before making a job offer.
• There is slightly more flexibility when employing someone aged 14-16. There are still limits on the length of their working day though – 14 year olds are only able to work 5 hours per day and 25 hours per week. This increases to 8 hours per day and 35 hours per week for 15-16 year olds. Until they turn 16 though, they will need to be given a 1 hour rest break for every 4 hours they work in a day. Additionally, anyone under 16 should have at least a 2 week break from work during the school holidays in each calendar year so they can’t work all school holidays for a business without a break. There is no minimum wage which applies to this age group, but employers are not expected to take advantage of this to exploit young workers.
• If you want to employ 16-17 year olds – the main restriction to be aware of is night working. Although there are exceptions for retail, catering, hotels, restaurants and bakeries which are likely to cover many nightwork roles available for this age range. Workers in this age bracket are also entitled to a 30 minute rest break if a shift is longer than 4 ½ hours, compared to an adult entitlement of 20 minutes in a 6 hour shift. They are also entitled to be paid the national minimum wage, which is currently £6.40 per hour.

Concluding comments

In conclusion, managing employee holiday entitlement requires careful planning, communication, and flexibility from both employers and employees. By addressing common questions regarding holidays in the workplace proactively and transparently, businesses can create a positive working environment while ensuring operational efficiency throughout the year.

If you have any questions about employee holiday entitlement please don’t hesitate to contact Charlotte Farrell and Tabytha Cunningham on [email protected] or 02380 482134. Please also take a look at our Employment Law section of the website to see what other employment services we provide.