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Losing Holiday Entitlements

Olivia

Hello,

Our company wants to bring in a  policy of allowing to carry over a maximum 5 days holidays, this is to encourage people to use up their entitlements instead of letting them build up. However, the policy will state that only 5 days can be carried over and if the employee has more days left at the end of the year they will lose them. 

Would anyone know if there are any legal ramifications behind this policy?

Thanks in advance

Parents

  • Hi Olivia, your query is dealt with in an FAQ on the Ibec website:

    The bit that relates to you is as follows:

    Where statutory annual leave is not taken in the leave year it is accrued, an employee cannot ‘lose’ statutory leave if it is not taken. Where the employee has been encouraged to take his or her statutory annual leave within the leave year but has failed to do so, an employer may require the employee to take annual leave with one month’s notice. Employers who provide additional company leave days in addition to statutory leave may employ a ‘use it or lose it’ policy with respect to these days, as they are viewed as a company benefit and are not governed by the Organisation of Working Time Act 1997.

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  • Hi Olivia, your query is dealt with in an FAQ on the Ibec website:

    The bit that relates to you is as follows:

    Where statutory annual leave is not taken in the leave year it is accrued, an employee cannot ‘lose’ statutory leave if it is not taken. Where the employee has been encouraged to take his or her statutory annual leave within the leave year but has failed to do so, an employer may require the employee to take annual leave with one month’s notice. Employers who provide additional company leave days in addition to statutory leave may employ a ‘use it or lose it’ policy with respect to these days, as they are viewed as a company benefit and are not governed by the Organisation of Working Time Act 1997.

Children
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