Although it’s in everyone’s best interest for your staff to use their entire annual leave allowance, on occasion, they’re guaranteed to ask for dates which are problematic for the company. Whether it’s a busy time for your business that requires all hands on deck or workers have booked time off already, you often have no choice but to deny an employee’s holiday request. An employer can refuse such requests based on valid reasons such as business needs, staffing requirements, and peak work periods. However, if an employee has enough leave and the business is adequately covered, it is good practice to grant their request.
However, the question is, are you actually allowed to refuse someone’s annual leave request? And, if so, what are the circumstances under which you can do so? Employers must treat holiday requests fairly and equally to avoid complaints of discrimination. Additionally, employers must give notice when refusing holiday requests, ensuring transparency and fairness. The notice given should be at least equivalent to the length of the requested holiday. Employees have a legal right to annual leave, and employers must adhere to these entitlements and obligations.
Introduction to Holiday Entitlement
Holiday entitlement is a statutory right that allows employees to take paid time off work. In the UK, most workers are entitled to a minimum of 5.6 weeks of paid holiday per year, which includes bank holidays. This entitlement applies to full-time and part-time employees, as well as those working irregular hours or on zero-hour contracts. Employers must provide employees with a clear understanding of their holiday entitlement and the procedures for requesting time off. By ensuring that employees are aware of their rights, employers can foster a fair and transparent workplace environment.
How much annual leave are employees entitled to?
First: a quick refresher on annual leave entitlement. Irregular workers, including those with unpredictable hours or casual contracts, are entitled to statutory holiday based on the hours they work, calculated as 12.07% of the hours worked over a year. Employers can either provide holiday pay or allow these workers to utilize their accrued leave, ensuring they receive the appropriate benefits for their unpredictable work schedules.
In the UK, the statutory minimum annual leave for an employee is 28 days, which includes the 8 official bank holidays. Full-time employees working five days a week are entitled to at least 28 days of paid leave per year. Part-time employees are entitled to the same amount of holiday but on a pro-rated basis, depending on how many days a week they work. Most workers in the UK are entitled to 5.6 weeks of paid holiday per year, which should be compensated in the usual way. If an employee has used more leave than they have accrued before leaving the company, the employer is entitled to deduct the excess from the employee’s final pay. Use our statutory holiday entitlement calculator to work out statutory holiday entitlement for an entire year or pro-rata. Start your free trial now & calculate allowance with ease.
However, the number of days a company gives their employees above the mandatory 28 days is up to them. They’re just not allowed to give them any less than 28 days. Employees on maternity leave, paternity leave, adoption leave and sick leave continue to accrue annual leave during their period of leave. Additionally, employees can carry over unused statutory holiday entitlement for up to 20 days if they were unable to take their leave due to sickness.
Holiday Policy and Procedures
A well-structured holiday policy is essential for employers to manage employee requests and ensure that business needs are met. The policy should outline the procedures for requesting holiday time off, including the notice period required, how holiday requests are approved or refused, and the rules for carrying over unused holiday entitlement. Employers should also communicate their holiday policy clearly to employees, either through their employment contract, staff handbook, or company intranet. This helps to prevent misunderstandings and ensures that employees are aware of their rights and responsibilities. A clear policy not only aids in smooth operations but also helps in maintaining employee satisfaction and trust.
Employee Rights and Responsibilities
Employees have the right to request holiday time off, but they must also follow the procedures outlined in their employer’s holiday policy. This includes providing adequate notice, usually at least twice the length of the holiday requested, and ensuring that their request does not conflict with business needs or other employees’ holiday plans. Employees are also responsible for checking their holiday entitlement and ensuring that they take their allocated holiday time within the specified holiday year. If an employee’s holiday request is refused, they should understand the reason for the refusal and be given the opportunity to discuss alternative dates. By adhering to these responsibilities, employees can help maintain a harmonious and efficient workplace.
Requesting Holiday Time Off
When requesting holiday time off, employees should submit their request in writing, stating the dates they wish to take off and the number of days they are requesting. The notice period for requesting holiday time off varies, but it is typically at least twice the length of the holiday requested. For example, if an employee wants to take a week’s holiday, they should provide at least two weeks’ notice. Employers should then respond to the request, either approving or refusing it, and provide a clear reason for any refusal. If a holiday request is approved, the employer should confirm the dates and ensure that the employee’s work is covered during their absence. This process helps in planning and ensures that business operations continue smoothly.
When are you allowed to decline an employee’s annual leave request?
The law, specifically Working Time Regulations 1998**,** states that you have a right to refuse an employee’s holiday request. However, although you can refuse a request for specific time-off, you can’t refuse to let workers take the leave at all. If an employer refuses a holiday request, they must ensure it aligns with legal rights and procedures. You should request that they choose alternative dates. An employer cannot cancel a period of leave if it means that the employee will not be able to use all of their statutory leave entitlement during that leave year. If a holiday request is denied, an employee can follow the grievance procedure to file a formal complaint.
In addition, you’re also obliged to give your employees notice of their holiday request refusal. This has to be equal to the amount of leave that an employee has requested off work. For example, if someone asks for a week of annual leave, you must give at least a week’s notice, from the requested date, that their request has been declined.
In terms of why you can refuse an employee’s holiday request, you can only do so when you have a valid reason. Such reasons include:
- Too many workers already booking time off: Granting their holiday request would leave the business short-staffed.
- It’s a busy period for the business: An employee is asking for leave at a time when their contribution is especially needed.
- The employee doesn’t give you the required notice: It’s a statutory requirement for employees to give twice as much notice for their holiday request as the length of time off they’re requesting. E.g. a request for seven days’ holiday leave requires 14 days’ notice.
- The employee hasn’t accrued enough annual leave: This would apply to those that are in their first year with company and request more holiday than they have accumulated.
Employers may also refuse requests for specific dates if it conflicts with business needs or other valid reasons.
Exceptional circumstances, such as the impact of the coronavirus pandemic, may also justify the refusal of holiday requests.
Employers must provide notice that is at least equal to the length of the leave requested when refusing a holiday request. For example, if someone asks for a week of annual leave, you must give at least a week’s notice, from the requested date, that their request has been declined. The general notice period for holiday requests is typically twice the duration of the leave requested, unless otherwise specified in the employment contract.
There’s also the special case of employees who you can still refuse the holiday request of an employee of their notice period – but have to pay managing yourpayment in lieu of not (PILON).
Notice Period Requirements
When refusing a leave request, employers must consider how much notice is legally required. The notice period should be at least twice as long as the leave requested. For instance, if an employee books 5 days off, the employer must give at least 5 days’ notice of refusal to cancel leave. This period allows employees to make alternative arrangements and minimizes disruption to their personal plans. To avoid any confusion or disputes, employers should ensure that their notice period requirements are clearly outlined in their employment contract or staff handbook. It’s also important to note that the notice period for refusing a booking request can vary depending on the company policy and the specific circumstances of the request.
Busy Periods, Peak Periods and Holiday Requests
Employers often face challenges when dealing with leave requests during a peak period when the business anticipates high demand and requires ample staffing to operate effectively. Busy periods can include peak seasons, holidays, or critical project timelines, where the absence of an employee can significantly impact the business. In such cases, employers may refuse holiday requests to ensure that they have sufficient staff to meet their business needs.
Holiday arrangements can also pose challenges, such as last-minute requests and multiple employees wanting the same time off, which can impact staffing levels and team dynamics.
However, employers should handle these requests fairly and consistently, taking into account the employee’s holiday entitlement and the company’s leave policy. Employers can also consider alternative solutions, such as offering alternative dates or approving a shorter period of leave, to balance the needs of the business with the needs of their employees. By having a clear and fair policy in place, employers can minimize disputes and ensure that their employees feel valued and supported.
How to refuse a holiday request
The best way to refuse a holiday is to simply talk to your employee. Tell them the exact reason why they can’t have the dates they requested. They may be disappointed with your decision but at least they’ll understand why. Better still, if you outline and include the conditions of requesting annual leave in your absence policy and employment contracts, i.e., why leave requests could be rejected, you can refer to them if there’s a dispute. Employers should communicate their leave policies effectively to all staff. Annual leave policies should be documented in employment contracts and staff handbooks. Cancelling a pre-booked holiday without valid business reasons can lead to financial loss for the employee and potential claims for constructive dismissal. Additionally, it is crucial to communicate effectively with the affected employee to explain the reasoning behind the decision and adhere to legal obligations, thereby mitigating escalations and fostering a positive workplace environment.
In contrast, not taking a moment to explain to your employee why their request was rejected, they’re left to speculate and could jump to conclusions – and conclude that it’s personal.
If an employee takes holiday leave without authorization, it can lead to disciplinary actions. Unauthorized leave may be viewed as a disciplinary offence, emphasizing the importance of understanding the annual leave policy. If this happens every time you refuse a request, it could dissuade employees from requesting annual leave altogether, which will increase instance of burnout and sour your company culture. If an employee is consistently denied the right to take leave, it could result in a claim for constructive dismissal.
Lastly, after briefly explaining the reasons declining their request, encourage the employee to pick alternative dates. You might even go as far as suggesting different dates that could prove mutually beneficial. HR professionals play a crucial role in providing support and strategic advice to manage leave requests effectively.
ScheduleLeave’s centralized staff holiday planner allows your employees to see if the desired dates for their annual leave are leave available before coming to you with a request. You’ll also never have to keep your staff waiting with a decision, as you can approve or reject leave requests at the click of a button. Find out much time our absence management software will save your company with a no-obligation, free trial.
Dealing with Disputes
Disputes can arise when employers refuse holiday requests or cancel approved holidays. In such cases, employers should follow a fair and consistent process to resolve the dispute in accordance with employment law, which governs employee rights and employer obligations regarding holiday pay and leave requests. This can include discussing the issue with the employee, explaining the reason for the refusal or cancellation, and offering alternative solutions. Employers should also ensure that their employment contract or staff handbook outlines the procedure for dealing with disputes related to leave requests. If the dispute cannot be resolved informally, employers may need to follow a formal grievance procedure, which can include mediation or arbitration. By dealing with disputes in a fair and transparent manner, employers can maintain positive employee relations and minimize the risk of employment tribunal claims. Additionally, canceling a pre-booked holiday without valid business reasons may breach the implied duty of mutual trust and confidence, potentially leading to claims for constructive dismissal.
Mediation and Grievance Procedures for Holiday Disputes
In the event of a dispute over holiday entitlement or a refused holiday request, employers and employees should attempt to resolve the issue through mediation or a grievance procedure. This involves discussing the issue and trying to find a mutually acceptable solution. If the dispute cannot be resolved, the employee may be able to submit a formal complaint or take their case to an employment tribunal. Employers should have a clear grievance procedure in place, which outlines the steps to be taken in the event of a dispute, and ensures that employees are aware of their rights and the procedures for resolving disputes. By following these procedures, employers and employees can resolve holiday disputes in a fair and timely manner, minimizing the risk of financial loss or damage to the employment relationship.
Cancelling Approved Holidays
Employers may need to cancel approved holidays in certain circumstances, such as a sudden increase in workload or an unexpected absence of another employee. When an employer cancels a holiday, it is crucial to consider the business needs and the legal requirements for notice periods and justifications. However, employers should exercise caution when cancelling approved holidays, as this can cause significant disruption to an employee’s personal plans.
In the case of a pre-approved holiday, employers must adhere to specific conditions for cancellation, including providing adequate notice and ensuring employees can still utilize their statutory leave entitlement. Employers should provide notice as soon as possible when cancelling an approved holiday, taking into account the length of the holiday and the notice period required by the employment contract or policy. Employers should also offer alternative dates or compensation to the employee, where possible, to minimize the impact of the cancellation. By handling cancellations in a fair and considerate manner, employers can maintain trust and avoid disputes with their employees. It’s also important to note that employers should have a clear policy in place for cancelling approved holidays, which should be communicated to employees in advance to avoid any confusion or misunderstandings.
