Annual Leave Policies

Summer is here, but before you pack… things to remember about Annual Leave Policies.

As we wait in excited anticipation for our great British summer to arrive many of us are counting down the days to our long awaited mid-year break.

Of course the topic of annual leave applies all year round, but as an employer it is often the summer time that can be tricky to manage, balancing the resources required to keep your business operating smoothly as well as being fair to your staff.

Annual leave is a legal entitlement for all full time and part time employees and effective management of all leave is a key component to employee satisfaction and the successful running of your business.

It is therefore vitally important that both the employer and the employee have a clear understanding of the annual leave policy and that there is no ambiguity, which can lead to frustration and dissatisfaction in the workplace.

Your Annual Leave Policy needs to deal with a number of key areas:

  • Statutory rights to employee leave – what is their entitlement?
  • Holiday notice periods – what is the minimum period to give?
  • How is that notice given? – written, verbally or through online applications
  • How the business plans for annual leave
  • Effective tracking and approval of annual leave
  • Maximum amount of leave that can be taken at one time
  • Fixed periods where the employer can stipulate when leave is taken
  • The right of the employer to refuse annual leave
  • How leave can be accrued and how much of the entitlement can be accrued
  • What happens when sickness coincides with annual leave
  • Parental leave entitlement and annual leave
  • Unused annual leave when employment is severed
  • How annual leave and bank holidays are pro-rated for part time staff

It’s clear by this list, which by the way is not exhaustive, that the annual leave policy is complex and therefore needs to be accessible in such a way that it can be clearly understood by all within the business.

Here are a few examples of how we are helping our clients with their Annual Leave Policies:

  • Manage the holiday leave process including pro-rated calculations for part-time staff
  • Create and write relevant annual leave policies for clients, either for handbooks or one off policies
  • Deal with issues (good and bad) and questions relating to annual leave

If you feel that your Annual Leave Policy requires either implementing or stream lining Lloyd HR Consultancy can help you.  Please call Charlie Lloyd or 01737 336336 or email us

P.S. Don’t forget that your Severe Weather policy should also include issues related to hot weather as well as in cold weather!