UK Holiday Entitlement 2026: 28 Days Statutory Leave Guide

Quick Answer: How Much Holiday Are UK Employees Entitled To?

UK employees are entitled to a minimum of 5.6 weeks paid annual leave per year. For full-time workers (5 days/week), this equals 28 days including bank holidays.

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Understanding UK Statutory Holiday Entitlement

The statutory minimum holiday entitlement in the UK is set by the Working Time Regulations 1998. This legislation ensures all workers receive adequate paid time off, regardless of their contract type.

Key Facts About UK Holiday Entitlement

• Minimum entitlement: 5.6 weeks (28 days for 5-day workers)
• Bank holidays: Can be included in the 28 days
• Accrual rate: 1/12th of annual entitlement per month
• Carry-over: Employers can allow unused days to roll over
• Payment: Must be at normal rate of pay

What's Included in the 28 Days?

Employers can include the 8 UK bank holidays within the statutory 28 days. This means:

• Including bank holidays: Employee gets 20 days to choose + 8 bank holidays = 28 total
• Excluding bank holidays: Employee gets 28 days to choose + 8 bank holidays = 36 total

Most UK employers offer 20-25 days plus bank holidays, totalling 28-33 days annually.

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How to Calculate Holiday Entitlement for Part-Time Workers

Part-time workers are entitled to the same 5.6 weeks of paid annual leave as full-time workers, calculated on a pro-rata basis. The Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000 prohibits treating part-time workers less favourably than their full-time counterparts.

The Pro-Rata Formula

Annual leave = 5.6 x days worked per week

Note: The statutory maximum is capped at 28 days, even if the calculation would produce a higher number. Someone working 6 days per week still receives 28 days, not 33.6.

Handling Fractions of Days

When the calculation produces a fraction (such as 16.8 days), employers cannot round down. They can either:

• Round up to the nearest half or whole day (recommended by ACAS)
• Allow the fractional day to be taken as a partial day off

Bank Holidays and Part-Time Workers

This is where many employers make mistakes. There is no automatic right to take bank holidays off. Part-time workers who do not work on a day when a bank holiday falls should not lose out on their pro-rata entitlement.

Example: If full-time staff get 28 days plus 8 bank holidays (36 total), a 3-day worker should get: (36 / 5) x 3 = 21.6 days total, minus any bank holidays that fall on their working days.

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Holiday Entitlement for Irregular Hours and Zero-Hours Workers

The Working Time Regulations were amended in January 2024 to simplify holiday calculations for irregular hours workers and part-year workers. The 12.07% accrual method is now the recommended approach.

The 12.07% Method

For every hour worked, 12.07% of that time accrues as holiday. This figure comes from dividing 5.6 weeks by 46.4 working weeks (52 weeks minus 5.6 weeks of leave).

Example: A zero-hours worker who works 120 hours in a month accrues 120 x 0.1207 = 14.48 hours of holiday.

Rolled-Up Holiday Pay

From January 2024, employers can lawfully use rolled-up holiday pay for irregular hours and part-year workers. This means adding a 12.07% uplift to each payment instead of paying separately when leave is taken.

This must be:

• Clearly identified as a separate line on the payslip
• Calculated on total earnings including overtime and commission
• Applied consistently

Holiday Pay for Workers with Variable Earnings

For workers whose pay varies, holiday pay must be calculated based on average earnings over a 52-week reference period (excluding weeks with no pay). This ensures workers who earn commission, overtime, or bonuses receive fair holiday pay.

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Accrual for New Starters and Leavers

New Starters Mid-Year

Employees who join partway through the holiday year accrue leave on a pro-rata basis from their start date.

Example: An employee with 28 days entitlement who starts on 1 July (with a January-December holiday year) has 6 months remaining. Their entitlement for that year is 28 x (6/12) = 14 days.

Leavers and Final Pay

When an employee leaves, you must calculate their accrued but untaken holiday and either:

• Allow them to take remaining leave during their notice period
• Pay them in lieu of untaken holiday in their final pay

If the employee has taken more holiday than they have accrued, you may be able to deduct the overpayment from their final pay -- but only if the employment contract allows this.

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Carry-Over Rules in the UK

Statutory Position

The Working Time Regulations distinguish between two types of leave:

1. 4 weeks (20 days for full-time) derived from the EU Working Time Directive -- this generally must be taken in the leave year and cannot be carried over
2. 1.6 weeks (8 days for full-time) the additional UK entitlement -- employers can restrict carry-over of this portion

When Carry-Over Is Required

Carry-over must be allowed when:

• The employee was unable to take leave due to maternity, paternity, or adoption leave
• The employee was on long-term sick leave (the right to carry over 4 weeks of leave has been confirmed by case law)
• The employer failed to enable the worker to take their leave or failed to inform them they would lose it

The landmark case Kreuziger v Land Berlin (2018) and subsequent UK cases established that employers bear the burden of proving they enabled workers to take their leave.

Best Practice for Carry-Over

• Set a clear carry-over policy in the employee handbook
• Allow a reasonable carry-over window (many employers allow 5 days to be carried into the first quarter)
• Remind employees of unused entitlements well before the year ends
• Never implement a blanket use-it-or-lose-it policy without actively encouraging leave use

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Bank Holidays in the UK

2026 UK Bank Holidays (England and Wales)

Scotland and Northern Ireland have different bank holiday schedules. Scotland has 9 bank holidays and Northern Ireland has 10.

Employer Obligations Around Bank Holidays

• There is no statutory right to time off on bank holidays
• Employers can require staff to work on bank holidays (common in retail, hospitality, healthcare)
• If the contract states bank holidays are included in the 28-day entitlement, this is lawful
• Part-time workers must receive a pro-rata share of any bank holiday benefit

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Holiday Pay Calculations

What Counts as Normal Pay?

Holiday pay must reflect normal remuneration, not just basic salary. Following the Bear Scotland v Fulton (2015) case and subsequent legislation, holiday pay for the first 4 weeks of leave must include:

• Basic salary
• Regular overtime (both compulsory and voluntary if worked regularly)
• Commission and results-based pay
• Regular allowances and supplements
• Shift premiums

The remaining 1.6 weeks can be paid at basic rate only.

The 52-Week Reference Period

To calculate holiday pay for workers with variable earnings:

1. Look back over the last 52 weeks in which the worker was paid
2. Exclude any weeks where no pay was received
3. Calculate the average weekly pay across those weeks
4. Use this figure as the daily rate for holiday pay

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Managing Annual Leave Effectively

Setting Up a Leave Policy

Every UK employer should have a written leave policy covering:

• The leave year dates
• How to request and approve leave
• Minimum notice requirements
• Blackout periods (if any)
• Carry-over rules
• What happens when employees leave

Common Leave Management Challenges

Overlapping Requests: When multiple team members request the same dates, having a clear first-come-first-served or seniority-based policy prevents disputes.

Unauthorised Absence: If an employee takes leave without approval, follow your disciplinary procedure. Never deduct from holiday entitlement as a punishment.

Long-Term Sickness and Holiday: Employees continue to accrue statutory holiday during sick leave. They can request to take annual leave during sickness (and receive holiday pay instead of SSP), or carry over untaken leave.

Maternity Leave: Statutory holiday continues to accrue throughout maternity leave (both ordinary and additional). The employee can take their accrued holiday before or after maternity leave, or carry it over.

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Legal Framework and Key Legislation

Working Time Regulations 1998

The primary legislation governing holiday entitlement. Key provisions:

• Regulation 13: Entitlement to 4 weeks' annual leave
• Regulation 13A: Entitlement to additional 1.6 weeks
• Regulation 14: Compensation on termination
• Regulation 15: Dates and notice for leave

Employment Rights Act 1996

Provides the right to receive a written statement of employment particulars including holiday entitlement details.

Part-Time Workers Regulations 2000

Ensures part-time workers receive pro-rata holiday entitlements and are not treated less favourably than full-time colleagues.

Recent Case Law

• Harpur Trust v Brazel (2022): Confirmed that part-year workers are entitled to 5.6 weeks' leave without pro-rating, though this has since been addressed by the 2024 legislative changes for irregular hours workers.
• Bear Scotland v Fulton (2015): Established that regular overtime must be included in holiday pay calculations.
• King v Sash Window Workshop (2017): Workers who were denied paid holiday could carry over and accumulate leave until employment ended.

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How Grove HR Manages Holiday Entitlement

Grove HR automates the entire leave management process for UK businesses:

• Automatic entitlement calculation based on working pattern (full-time, part-time, irregular hours)
• Pro-rata calculations for new starters and leavers
• Bank holiday management with support for different UK regions
• Carry-over rules configurable per company policy
• Holiday pay calculations for variable-earnings workers
• Team calendar showing approved leave across departments
• Self-service requests so employees manage their own leave
• Bradford Factor integration to monitor absence patterns alongside leave

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Frequently Misunderstood Areas of UK Holiday Law

Can Employers Force Employees to Take Holiday?

Yes. Employers can direct employees to take holiday on specific dates by giving notice at least twice as long as the period of leave. For example, to require an employee to take one week off, the employer must give at least two weeks' notice.

This power is commonly used during:

• Christmas shutdown periods
• Factory closures for maintenance
• Quiet trading periods

However, employers cannot force employees to take all their leave at prescribed times. A reasonable balance must be maintained between employer-directed and employee-chosen leave.

Do Employees Accrue Holiday During Their Notice Period?

Yes. Holiday continues to accrue throughout the notice period, whether the employee is working their notice, on garden leave, or receiving payment in lieu of notice (PILON). Employees can request to take accrued holiday during their notice period, subject to normal approval processes.

What About Holiday During Furlough?

While the Coronavirus Job Retention Scheme has ended, the principles established during the pandemic remain relevant. Employees who were furloughed continued to accrue statutory holiday, and employers must have facilitated their ability to take it. Any untaken holiday from furlough periods that could not reasonably have been taken may need to be carried over.

Agency Workers and Holiday

Agency workers qualify for statutory holiday entitlement from day one of their assignment. After 12 weeks in the same role, they are also entitled to comparable holiday terms as permanent staff under the Agency Workers Regulations 2010.

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Industry-Specific Holiday Considerations

Retail and Hospitality

Businesses with peak trading periods often restrict leave during busy times (Christmas, summer). This is lawful provided:

• The restriction is communicated clearly in advance
• It is applied consistently across the team
• Employees still have sufficient opportunity to use their full entitlement during the year

Healthcare

NHS and private healthcare staff working rotating shifts need careful pro-rata calculations. Employers must account for the varying shift lengths and patterns when calculating entitlements.

Construction

The construction industry traditionally operates annual shutdowns (often two weeks in summer and two weeks at Christmas). These shutdown periods can be taken from statutory holiday entitlement provided they are communicated in advance and do not prevent workers from taking their full 5.6 weeks.

Education

Term-time only workers present unique calculation challenges. The Supreme Court decision in Harpur Trust v Brazel (2022) initially meant part-year workers received more than a strict pro-rata calculation. However, the Working Time Regulations amendments in January 2024 introduced specific rules for part-year workers using the 12.07% accrual method.

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Practical Steps for Getting Holiday Entitlement Right

Step 1: Audit Your Current Setup

Review your employment contracts, handbook, and leave policy to ensure they accurately reflect statutory requirements. Common gaps include:

• No mention of how bank holidays interact with the 28-day minimum
• Missing carry-over provisions
• Incorrect calculations for part-time or variable-hours workers

Step 2: Choose Your Holiday Year

You can set any 12-month period as your holiday year. Common choices are:

• Calendar year: 1 January to 31 December
• Financial year: 6 April to 5 April
• Anniversary-based: Starting from each employee's start date

If you do not specify a holiday year in the employment contract, it defaults to 1 October to 30 September.

Step 3: Set Clear Policies

Document and communicate:

• How to request leave (and minimum notice requirements)
• The approval process and who can approve
• Any blackout periods or restrictions
• Carry-over rules and deadlines
• What happens when an employee leaves mid-year

Step 4: Use HR Software

Manual tracking with spreadsheets leads to errors, compliance gaps, and disputes. Modern HR software like Grove HR automates calculations, manages requests, and keeps an audit trail that protects you in any dispute.

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Holiday Entitlement and Long-Term Absence

Sick Leave

Employees on long-term sick leave continue to accrue their full statutory holiday entitlement. They can:

• Request to take annual leave during sick leave (receiving holiday pay rather than SSP)
• Carry over untaken leave to the next holiday year if they were unable to take it due to illness

The right to carry over sick-leave holiday was confirmed by the European Court of Justice in Stringer v HM Revenue and Customs (2009) and applies to the 4-week EU-derived entitlement. The additional 1.6 weeks may be lost at year-end, depending on the employer's policy.

Maternity, Paternity, and Adoption Leave

Statutory holiday accrues throughout:

• Ordinary maternity leave (26 weeks)
• Additional maternity leave (further 26 weeks)
• Paternity leave (2 weeks)
• Adoption leave (up to 52 weeks)
• Shared parental leave

Employees cannot take annual leave at the same time as statutory maternity/paternity/adoption leave. Instead, they typically take accrued holiday immediately before or after their statutory leave period.

Parental Bereavement Leave

Employees on parental bereavement leave (2 weeks) continue to accrue statutory holiday. This leave does not reduce their annual leave entitlement.

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Penalties for Non-Compliance

Failing to provide correct holiday entitlement can result in:

• Employment tribunal claims: Workers can bring claims for unpaid holiday or incorrect holiday pay. Claims can cover up to two years of underpayments following the Bear Scotland case.
• Financial penalties: Tribunals can award compensation for losses suffered, plus interest.
• Reputational damage: Holiday disputes are among the most common tribunal claims and can indicate wider compliance issues.
• HMRC interest: Consistent underpayment of holiday pay may attract HMRC attention regarding National Insurance contributions.

The limitation period for holiday pay claims is generally 3 months from the date of the last underpayment, though a series of deductions can extend this.

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Checklist: Holiday Entitlement Compliance

• All employment contracts state the holiday entitlement and how it is calculated
• Part-time workers receive pro-rata entitlement calculated correctly
• Bank holiday arrangements are clear and non-discriminatory
• Holiday pay includes regular overtime, commission, and allowances for the first 4 weeks
• A clear carry-over policy is documented and communicated
• New starters receive pro-rata entitlement from their start date
• Leavers are paid for accrued but untaken leave in their final pay
• Irregular hours workers accrue holiday at 12.07% (or receive rolled-up holiday pay)
• Employees on sick leave and maternity leave continue to accrue holiday
• The holiday year is defined in employment contracts
• An HR system is in place to track entitlements, requests, and balances accurately

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Summary

UK holiday entitlement law is more nuanced than many employers realise. Getting it right protects your business from tribunal claims, keeps employees satisfied, and ensures you meet your legal obligations under the Working Time Regulations 1998.

The key principles to remember are:

1. 5.6 weeks is the minimum -- most employers offer more, but never less
2. Part-time workers must receive pro-rata entitlement -- use the 5.6 multiplier
3. Bank holidays are not automatic days off -- check your contracts
4. Holiday pay must reflect normal earnings -- not just basic salary
5. Holiday accrues during all types of leave -- sickness, maternity, paternity
6. Carry-over rights exist -- especially where leave could not reasonably be taken
7. Irregular hours workers use the 12.07% accrual method since January 2024

Keeping on top of these requirements manually is difficult, especially as your team grows. HR software designed for the UK market handles these calculations automatically, reducing errors and ensuring every employee receives their correct entitlement

Get started with Grove and simplify your leave management.