Make time for time off

Why employers should keep an eye on unused holiday

With summer in full swing, now is the perfect time to take stock - not just of who is on holiday, but also of who isn’t.

Despite the sunshine, many employees are staying chained to their desks. According to research by HR professionals, just 35% of UK workers had used their full holiday entitlement last year, and 17% left more than five days unused at year-end. The long-term risks of holiday hoarding can impact employee wellbeing, productivity and legal compliance.

Whether it is staff shortages, unspoken expectations, or a fear of falling behind, these barriers are keeping employees from taking the rest they are entitled to. Added to this is the statistic that 57% of workers admit to logging in while away, which means that time off isn’t always time out.

While the proposed legal right for workers to “switch off” from work was dropped from the Employment Rights Bill currently going through Parliament, the issue has not disappeared altogether. The government has confirmed it will be revisited through a new statutory Code of Practice in a move that suggests formal expectations around out-of-hours contact, and uninterrupted leave could still be on the horizon for employers.

Under the Working Time Regulations 1998, most workers are entitled to 5.6 weeks of paid holiday each year, equivalent to 28 days for a full-time, five-day-per-week employee. This includes bank holidays, unless employers choose to offer them on top.

Statutory leave is a “use it or lose it” entitlement, provided the employer can show that it gave the worker the opportunity to take paid annual leave, encouraged the worker to take paid annual leave and informed the worker that the right would be lost at the end of the leave year.  If the employer is unable to meet this burden, the worker’s right to take holiday carries over and accumulates until termination of the contract, at which point the worker is entitled to a payment in respect of all the unpaid annual leave that has accumulated.   It can also be carried forward in other limited situations, such as when a worker has been unable to take leave due to long-term sickness or statutory leave, such as maternity leave. Otherwise, any untaken leave may be lost at the end of the holiday year unless an employer has agreed to allow additional carryover in a written contract or policy.

Employers should ensure workers understand how much holiday they are entitled to, when it can be taken, and what happens if it isn’t taken.

Beyond the legal duty, studies show that rested staff are more motivated, less likely to take sick leave, and better equipped to deal with pressure and workload.

It is important to create a culture where time off is expected — not discouraged — and this starts from the top.  Staff should know how to book holiday, it should be encouraged, and the expectation should be that staff genuinely switch off when they go.