Why employers should keep an eye on unused holiday
With summer in full swing, now’s the perfect time for employers to take stock – not just of who’s on holiday, but of who isn’t.
Despite the sunshine, many employees are staying chained to their desks. According to research by HR professionals, just 35% of UK workers had used their full holiday entitlement last year, and 17% left more than five days unused at year-end. Over the long term, holiday hoarding can impact employee wellbeing, productivity and legal compliance.
Whether it’s staff shortages, unspoken expectations, or a fear of falling behind, various barriers are keeping employees from taking the rest they’re entitled to. And with 57% of workers admitting to logging in while away, time off isn’t always time out.
While the proposed legal right for workers to “switch off” from work was dropped from the Employment Rights Bill currently going through Parliament, the issue hasn’t disappeared altogether. The government has confirmed it will be revisited through a new statutory Code of Practice in a move that suggests formal expectations around out-of-hours contact. Uninterrupted leave could still be on the horizon.
Under the Working Time Regulations 1998, most workers are entitled to 5.6 weeks of paid holiday each year, equivalent to 28 days for a full-time, five-day-per-week employee. This includes bank holidays, unless employers choose to offer them on top.
Crucially, statutory leave is a “use it or lose it” entitlement. It can only be carried forward in limited situations, such as when a worker has been unable to take leave due to long-term sickness or statutory leave, such as maternity leave. Otherwise, any untaken leave may be lost at the end of the holiday year unless an employer has agreed to allow additional carryover in a written contract or policy.
That’s why it’s vital to maintain clear and up-to-date holiday policies. Employers should ensure workers understand how much holiday they’re entitled to, when it can be taken, and what happens if it isn’t.
Beyond the legal duty, promoting regular breaks is also good business. Studies show rested staff are more motivated, less likely to take sick leave, and better equipped to deal with pressure and workload.
