Employee annual leave

Annual leave is a legal entitlement for everyone classed as a worker in the UK. It provides the opportunity for valuable time away from work. Allowing for rest and recovery to support the health and wellbeing of workers in all industries.

Happy and healthy workers are what keep businesses running, so, as an employer, not only is it your legal duty to grant annual leave, but it Is also in the best interest of your business.

In this article we discuss what annual leave is, the current statutory entitlements in the UK, and its importance within the workplace. Plus, discover how a staff holiday planner can make leave management as simple as possible.

What is annual leave?

Annual leave is a period of paid time off from work. Employee annual leave is usually used by employees to take a rest from work, enjoy a holiday, or simply spend a day or more away from the workplace.

This is a type of leave covered by UK employment law and you are required to grant your employees a legal entitlement each year.  

Average holiday entitlements in the UK

The UK government states that the minimum statutory number of paid holidays for employees in the UK is 5.6 weeks.

Everyone in the UK, classed as a worker, is entitled to this amount of paid time off.

For employees who work 5 days per week this means 28 days, while part-time workers take holiday on a pro-rata basis.

For example, an employee working 3 days a week (also called 0.6FTE) would have 5.6 weeks x 3 days = 16.8 days of paid holiday.

Annual leave and public holidays

When it comes to public holidays, your organisation has the choice to include these in your employee’s annual leave entitlement. At some companies, employees must take Bank Holidays and Christmas, on the day they fall, as part of their 28 days’ annual leave.

Others offer more flexibility in how workers take their holidays. Your policy will depend on the needs of your organisation.

Annual leave calculations

Calculating annual leave can be simple. But getting it right is incredibly important to ensure that your business is legally compliant. For more information on how to calculate annual leave for your employees, see our guide on managing and calculating employee annual leave.

Writing an annual leave policy

Having an annual leave policy in place helps to keep rules regarding annual leave allowance and holiday requests clear.

Your policy should include the following details:

• How many annual leave days an employee is entitled to per year

• The process for requesting annual leave

• Criteria for approval or denial of holiday requests

With BrightBase you can access a wide range of HR templates and document guides. Including a handy template for writing your very own annual leave policy.

The importance of annual leave allowance for your business

Annual leave allowance isn’t simply in place to offer your employees the chance to take holiday. It exists to ensure that workers in the UK can enjoy a good work life balance. Being granted the time to take a break, rest, and unwind helps to protect their wellbeing.

Those who make the most of their annual leave allowance are far more likely to be productive in work, supporting business performance and growth.

The benefits of annual leave include:

• Greater productivity

• Improved rates of employee engagement

• Better work output and team performance

• Supports the success of the business

• Helps to reduce staff burnout and improve rates of retention

Processes for managing employee annual leave

Managing who’s in and who’s out can quickly become a HR nightmare if not documented properly.

Most businesses opt to use a type of holiday planner or annual leave calendar to keep track of who has annual leave and for how long.

Digital versions are even more advanced. Giving employees and managers access to annual leave calendars. Allowing employees to book annual leave in a few clicks, seeing what dates are available, and how much allowance they have remaining for the year. While managers can approve or deny holiday requests at their fingertips.

BrightHR’s staff holiday planner provides all these features and more! Making your leave management as easy as can be.

Simplify your leave management with BrightHR 

Keep everything in one place and gain full visibility of when your staff are taking holiday with BrightHR.

With a growing business, it can be difficult to manage employee annual leave. Keeping record of holiday requests and who has annual leave when. But thanks to BrightHR, you don’t need to battle with dated calendars or endless spreadsheets to manage paid holiday time. And with our handy HR app, you can even view annual leave requests at home, on the move, or while away on business.

Book a free demo today to discover the many benefits of a online staff holiday planner for your business.