Research has shown that only 35% of UK workers used their full annual leave entitlement in 2024 and 17% ended the year with more than five days left untaken.
This increasing trend of “holiday hoarding” can be a serious issue for both employee wellbeing and business productivity.
Annual Leave
Under the Working Time Regulations 1998 (WTR), full-time workers are legally entitled to a minimum of 5.6 weeks (28 days) of paid annual leave per holiday year, including bank holidays. Of this, at least four weeks must be taken within the holiday year in which it accrues.
While some leave can be carried forward under certain conditions (such as contractual agreements or long-term sick or parental leave) most of it should be used in-year.
Why is Holiday Hoarding a Problem?
When employees don’t take sufficient time off, the consequences can be detrimental:
- Stress and burnout increase.
- Mental health declines.
- Productivity and morale suffer.
And from a legal perspective, failing to encourage employees to use their leave could give rise to carry-over rights, leaving employers with a backlog of unused holiday liabilities.
How to Approach Holiday Hoarding
Combating holiday hoarding requires more than a reminder email at the end of the year. Here are some ideas on how employers can approach this:
- Manage Workloads Realistically – If employees feel they can’t take time off without falling behind, they won’t book leave. Make sure teams are adequately resourced and that cover plans are in place for periods of absence.
- Promote the Value of Time Off – Communicate regularly about the importance of taking holidays. Encourage staff to disconnect fully while away, including not being expected to reply to their emails. Remind them that taking time off improves focus and wellbeing.
- Empower Managers to Lead – Managers should lead by example by taking their own annual leave and discussing time off during one-to-ones or performance check-ins. Their attitudes can significantly influence their teams.
- Set Clear Booking Rules – Be transparent about how many team members can be off at the same time and during peak periods. This avoids a rush to book leave at the end of the year and ensures fair access for all.
- Use Efficient Booking Systems – Implement a user-friendly leave booking system that allows staff to see who’s off and plan their holidays accordingly. Visibility reduces uncertainty and improves planning.
- Have a Clear Policy on Carry Over – Include holiday carry-over provisions in employment contracts or your company’s holiday policy. Remember: if you don’t provide a reasonable opportunity to take leave or fail to inform staff that unused leave may be lost, they may gain the right to carry over up to four weeks of leave under the WTR.
If you are an employer or employee affected by the above issue and want advice or support in connection with the same, or any employment law or HR issues more generally, please do not hesitate to contact us on 01206 239 761.
