Carry Over Annual Leave: Complete UK Guide

Understanding your rights to carry over annual leave can make the difference between losing valuable holiday time and maximizing your work life balance. Many employees across the UK remain unclear about when they can carry forward unused leave, how much they’re legally entitled to keep, and what circumstances trigger automatic carry over rights.

Changes to UK law have expanded protection for employees who are unable to take all their annual leave due to sickness absence, family related leave, or other protected circumstances.

This comprehensive guide covers everything you need to know about carrying over annual leave, including legal requirements, calculation methods for different worker types, employer policies, and your rights when employment ends. Whether you’re a full time employee, part time employee, or work irregular hours, understanding these key points will help you protect your holiday entitlements and ensure you receive proper holiday pay for any untaken leave.

Can You Carry Over Annual Leave in the UK?

Yes, UK employees can carry over annual leave under specific circumstances, with significant protections in place. The basic rule allows workers to carry forward up to four weeks (20 days for full time employees) of unused annual leave when they are unable to take holiday due to protected reasons.

Regulations automatically allow carry over when leave cannot be taken due to long-term illness, maternity leave, paternity leave, adoption leave, or when an employer fails to provide reasonable opportunity to take annual leave. This represents a shift from previous “use it or lose it” policies that many employers previously enforced.

The carried over leave must be used within 18 months from the end of the leave year in which it was originally earned. For example, if you carry over holiday from a leave year ending in December, you must use those days within the following 18 months. After this deadline, the right to the carried forward leave expires unless exceptional circumstances apply.

Importantly, only the first four weeks of your statutory holiday entitlement can be carried forward under these automatic protections. The additional 1.6 weeks that make up the full 5.6 weeks statutory minimum requires a written agreement with your employer for carry over beyond the current leave year.

Employer discretion still applies for additional carry over beyond statutory requirements. Many companies have their own policies allowing employees to carry over 5-10 days of contractual annual leave, though this varies significantly between organizations and employment contracts.

UK Annual Leave Entitlement Basics

All UK workers are legally entitled to a minimum of 5.6 weeks paid annual leave per year, equivalent to 28 days for someone working five days per week. This statutory holiday entitlement is split into two components under current legislation: four weeks derived from the European Working Time Directive and an additional 1.6 weeks established under UK domestic law.

The calculation for full time employees is straightforward: 5 days per week × 5.6 weeks = 28 days total annual leave entitlement. This includes national bank holidays for most workers, though some employers provide additional contractual annual leave on top of this statutory minimum. For information on recent changes regarding carry over leave due to COVID-19, see the updated government guidance.

Worker Type	Weekly Hours	Annual Leave Calculation	Total Days
Full-time (5 days)	37.5-40 hours	5 days × 5.6 weeks	28 days
Part-time (3 days)	Annual leave during a notice period typically amounts to 22.5 hours for some employees. For more information about employee holiday during notice periods, see Employees taking holiday during their notice period – ScheduleLeave.	3 days × 5.6 weeks	16.8 days
Part-time (2 days) – find out more about calculating accrued annual leave for part-time employees.	15 hours	2 days × 5.6 weeks	11.2 days
For part-time workers and those with irregular hours, annual leave calculated on a pro-rata basis ensures fair treatment. A part time employee working three days per week receives 3 × 5.6 = 16.8 days, while someone working two days gets 11.2 days of paid annual leave.

Zero-hours contract workers and casual workers also qualify for the full holiday entitlement, calculated based on their average working patterns. Irregular hours workers benefit from a simplified 12.07% calculation method, where employees accrue annual leave equal to 12.07% of hours worked in each pay period.

Bank holidays and public holidays may be included within the 28-day minimum, depending on your employment contract. Some employers provide the 28 days plus bank holidays, giving a more generous total allocation, while others include the eight UK national bank holidays within the 28-day statutory minimum.

Legal Requirements for Annual Leave Carry Over

UK law establishes clear circumstances where carry over is legally required, removing employer discretion and ensuring workers don’t lose holiday entitlements due to factors beyond their control. These legal obligations represent some of the strongest worker protections in annual leave legislation globally.

The maximum amount that can be carried over under statutory protection is limited to four weeks (20 days for full time employees) of the core European Working Time Directive entitlement. This carry over right applies automatically when employees are unable to take leave due to specific protected circumstances, with the carried over leave usable within 18 months from the end of the leave year.

Key circumstances triggering automatic carry over rights include:

• Long-term sickness absence that prevents taking annual leave
• Maternity leave, paternity leave, or adoption leave periods
• Shared parental leave or other family related leave
• When an employer refuses reasonable annual leave requests without valid justification
• Situations where the employer fails to inform workers of their leave entitlement

The 18-month deadline starts from the end of the leave year in which the leave was originally earned, not from when the employee returns to work. This provides sufficient time for workers to use their carried forward entitlements while preventing unlimited accumulation of unused leave.

Carry Over Due to Sickness

Long-term sickness absence automatically triggers carry over rights for any annual leave that couldn’t be taken due to illness. This protection applies regardless of whether the sickness was work-related or personal, providing crucial safeguards for workers facing health challenges.

An employee who is off sick for several months at the end of their holiday year can carry over any unused annual leave to the next leave year. For example, if someone accumulates 28 days annually but can only take 10 days before falling ill, they can carry forward up to 18 days (limited to the four weeks maximum carry over) into the following year.

Medical certification requirements for sickness-related carry over typically follow standard sick leave procedures established in your employment contract. Most employers require fit notes or medical certificates for absences exceeding seven days, which would support the carry over claim if the absence prevented holiday usage.

Employers have a legal responsibility to facilitate this carry over and cannot impose additional restrictions beyond the statutory framework. They must track carried over leave separately and ensure employees receive reasonable opportunity to use these entitlements within the 18-month window.

Maternity and Family Leave Carry Over

Workers on maternity leave, paternity leave, adoption leave, or shared parental leave continue to accrue their full holiday entitlement throughout these protected periods. This means someone taking several months of maternity leave will have accumulated significant annual leave by their return, much of which will need to be carried forward.

Annual leave entitlements continue building during family leave periods because these are paid statutory leaves where the employment relationship remains active. A worker taking extended maternity leave would accrue their full 28-day annual entitlement (or pro-rata equivalent for part-time workers) while away from work.

Consider this example: An employee earning 28 days annually takes maternity leave from March through November. They used only 8 days before starting leave, leaving 20 days unused. These 20 days can be carried forward to the next leave year, subject to the 18-month usage deadline.

Return-to-work planning becomes crucial for employees with carried over leave from family leave periods. Many employers work with returning parents to schedule phased return patterns that incorporate some of the carried forward annual leave, easing the transition back to full-time work while ensuring compliance with usage deadlines.

Employer Policies on Annual Leave Carry Over

While statutory rules establish minimum protections, employers retain discretion over carry over policies for contractual annual leave beyond the basic entitlement. Most organizations develop written policies that balance employee absences with operational requirements and financial risk management.

Common company policies typically allow carry over of 5-10 days beyond the statutory protections, though this varies significantly across industries and organization sizes. Some employers operate strict “use it or lose it” policies for all non-statutory leave, while others provide more generous carry over allowances as part of competitive benefits packages.

The additional 1.6 weeks that forms part of the 5.6 weeks statutory minimum (beyond the core four weeks protected by carry over rights) requires a written agreement between employer and employee for carry over. This agreement should specify:

• How many additional days can be carried forward
• The deadline for using carried over contractual leave
• Any conditions or approval processes required
• What happens to unused carried over leave at the deadline

Reasonable carry over policies often include tiered approaches based on length of service, seniority, or operational requirements. For example, an organization might allow all employees to carry over 5 days, with managers permitted to carry over 10 days due to their difficulty taking leave during busy periods.

Best practice policies clearly communicate deadlines, tracking procedures, and approval processes. Many employers use HR systems that automatically track holiday accrual, usage, and carry over balances, sending reminders as deadlines approach to ensure employees don’t inadvertently lose entitlements.

Calculating Carry Over for Different Worker Types

Carry over calculations vary significantly depending on employment status, working patterns, and contractual arrangements. Understanding these calculations ensures workers claim their full entitlements while helping employers maintain compliant policies across diverse workforces.

For full time employees working five days per week, the maximum statutory carry over is straightforward: 4 weeks × 5 days = 20 days. This represents the core European Working Time Directive entitlement that benefits from automatic carry over protection in specified circumstances.

The calculation becomes more complex for workers with irregular hours or varying schedules. Irregular hours workers benefit from the 12.07% calculation method, where annual leave accrues at 12.07% of hours worked in each pay period. For example, a worker with 160 hours in a pay period would accrue 19.31 hours of annual leave (160 × 12.07%).

Employment Type	Working Pattern	Maximum Carry Over	Calculation Method
Full-time	37.5 hours/5 days	20 days	4 weeks × 5 days
Part-time (60%)	22.5 hours/3 days	12 days	4 weeks × 3 days
Part-time (40%)	15 hours/2 days	8 days	4 weeks × 2 days
Irregular hours	Variable	12.07% of hours worked	Applied to hours worked
Part year workers who start or leave mid-year receive pro-rata entitlements based on the portion of the leave year worked. Someone starting employment mid-year would earn a proportional annual entitlement for that year, with carry over rights applying to any unused portion.

Part-Time Employee Carry Over

Part-time workers receive the same carry over protections as full-time colleagues, calculated proportionally to their contracted hours. A part time employee working three days per week can carry over a maximum of 12 days (3 days × 4 weeks), while someone working two days can carry over 8 days.

These pro-rata calculations ensure fair treatment regardless of working patterns. For example, an employee contracted for 20 hours across three days receives the same relative protection as a full-timer working 37.5 hours across five days.

Bank holidays present particular considerations for part-time carry over calculations. If a part time employee normally works Mondays and a bank holiday falls on Monday, this may reduce their available annual leave for the year, affecting carry over calculations. Employment contracts should specify how bank holidays interact with part-time annual leave entitlements.

Employers must track part-time carry over separately and ensure these workers receive reasonable opportunity to use carried forward leave within the 18-month deadline. This might require additional flexibility in scheduling, particularly for employees with childcare or other commitments that limit their availability.

Using Carried Over Annual Leave

Carried over annual leave must be used within 18 months from the end of the leave year in which it was earned, creating clear deadlines that both employees and employers must track carefully. This timeline provides sufficient flexibility while preventing unlimited accumulation of unused leave.

The “first in, first out” principle applies to carried over leave, meaning employees must use their carried forward entitlements before accessing their new annual leave allocation for the current year. This ensures the oldest leave is used first and prevents confusion over which entitlements are approaching expiration.

Consider this timeline example: Annual leave carried over from a leave year ending December 31 must be used within the following 18 months. If an employee carries over 15 days, these must be taken before they can access their new annual leave entitlement.

Employers have a legal responsibility to track carried over leave and provide reasonable reminders as deadlines approach. Many organizations implement HR systems that automatically flag expiring entitlements and require approval for leave requests that would result in forfeited carry over.

The tracking burden increases complexity for employers managing multiple leave years, part-time workers, and employees with varying start dates. Best practice involves clear record-keeping that shows:

• Original leave year when entitlement was earned
• Reason for carry over (sickness, family leave, etc.)
• Usage deadline (18 months from original leave year end)
• Current balance of carried over vs. current year entitlement

Employees should maintain their own records of carried over leave and deadlines, particularly when changing jobs or returning from extended leave periods. This personal tracking helps ensure you don’t inadvertently lose valuable holiday entitlements.

When Employers Can Refuse Carry Over

While automatic carry over rights exist for specific protected circumstances, employers retain some discretion to refuse carry over requests in other situations. Understanding when refusal is legally permissible helps both parties navigate annual leave planning appropriately.

Employers cannot legally refuse carry over when employees are unable to take leave due to:

• Long-term sickness absence
• Maternity, paternity, or adoption leave
• Other statutory family leave periods
• Employer failure to provide reasonable opportunity to take leave
• Lack of proper notification about leave entitlements

However, employers can refuse discretionary carry over requests for contractual annual leave beyond statutory minimums. Valid reasons for refusal might include operational requirements, adequate opportunity provided to take leave during the year, or failure to follow company procedures for requesting carry over.

The requirement for reasonable notice applies to both annual leave requests and carry over applications. An employee requesting to carry over leave should follow established company procedures and provide appropriate notice, typically matching the notice period required for regular annual leave requests.

Examples of circumstances where employer refuse carry over might be legally justified include:

• Employee had reasonable opportunity to take leave but chose not to
• Operational requirements were communicated well in advance
• Employee failed to follow established leave booking procedures
• Request would create disproportionate operational disruption

Clear, consistently applied policies help prevent disputes over carry over refusal. Employers should document decision-making processes and ensure policies don’t inadvertently discriminate against particular groups or contradict statutory protections. For optimal results, it’s essential to track leave efficiently.

Annual Leave Payment on Employment Termination

When employment ends, employers have a legal responsibility to pay out all accrued annual leave, including any carried over leave that remains unused. This payment obligation covers both statutory leave entitlement and any additional contractual annual leave provided by the employer.

The calculation for payment in lieu must include carried over leave at the employee’s current rate of pay, not the rate applicable when the leave was originally earned. This ensures workers receive fair compensation that reflects any pay increases received since the leave was accrued.

Both statutory and contractual leave must be compensated in the final pay. For example, an employee leaving with 28 days of annual leave entitlement (including 10 days carried over from the previous year) must receive payment for all 28 days, calculated at their current daily rate.

The calculation method varies depending on pay structure:

Fixed Salary Employees:

• Daily rate = Annual salary ÷ 365 days (or ÷ working days if specified in contract)
• Payment = Daily rate × Days of untaken leave

Hourly Paid Workers:

• Calculate average weekly pay over the previous 52 weeks
• Daily rate = Weekly average ÷ Days normally worked per week
• Payment = Daily rate × Days of untaken leave

Irregular Hours Workers:

• Use the 12.07% method or average weekly pay calculation
• Include all forms of regular payment (overtime, commission, etc.)

Employers cannot refuse to pay for accrued annual leave on termination, even during notice periods or for dismissed employees. This payment obligation is absolute under uk law and applies regardless of the reason for employment ending.

The payment should appear in the employee’s final pay statement with clear itemization showing how many days of untaken leave are being compensated. This transparency helps prevent disputes and ensures compliance with statutory rules governing final pay calculations.

For workers who have used more annual leave than accrued (particularly common early in the leave year), employers may deduct overpaid holiday pay from final pay, subject to contractual terms and employment law limitations on deductions.

Key Takeaways

Understanding carry over annual leave rights is essential for protecting your holiday entitlements and maintaining healthy work life balance. Changes to UK law have strengthened worker protections, particularly for those unable to take all their annual leave due to sickness or family circumstances.

Remember that up to four weeks of your statutory holiday entitlement can be carried forward automatically when protected circumstances prevent usage, with 18 months to use these carried over days. Additional contractual leave may be carried forward with written agreement, subject to your employer’s policies.

Whether you’re a full time employee, part time employee, or work irregular hours, these protections apply proportionally to your holiday entitlements. Part year workers and those with variable schedules also benefit from pro-rata protections that ensure fair treatment regardless of working patterns.

For employers, clear policies and proper tracking systems are essential for compliance with legal obligations while managing operational requirements. The balance between worker flexibility and business needs requires thoughtful policy design and consistent application.

Most importantly, remember that this article does not constitute legal advice, and complex situations may require professional guidance. Review your employment contract and company policies to understand your specific entitlements, and don’t hesitate to seek clarification from HR or legal professionals when needed.

By understanding these rights and responsibilities, both employees and employers can navigate annual leave carry over effectively, ensuring valuable holiday time isn’t lost while maintaining productive and compliant workplace relationships.