Managing leave correctly is one of the most misunderstood parts of running payroll in the UK. The minimum rights come from several pieces of law — the Working Time Regulations 1998 for holiday, social security law for Statutory Sick Pay, and the Employment Rights Act 1996 and related regulations for family leave. Getting them wrong can lead to employment tribunal claims and unhappy staff.
This guide covers statutory holiday, how to pro-rate it, sick pay, family leave, and what happens to holiday when someone leaves.
Annual Leave (Holiday)
Almost all workers — full-time, part-time, agency and zero-hours — are entitled to 5.6 weeks of paid holiday a year. For someone working five days a week that is 28 days. The statutory entitlement is capped at 28 days, so someone working six days a week still gets 28.
There is no legal right to have bank holidays off as extra paid leave. Employers can include the 8 bank holidays in England and Wales (9 in Scotland, 10 in Northern Ireland) within the 28 days, or give them on top — the contract should say which.
Key Rules for Holiday
- Holiday entitlement starts from the first day of work.
- In the first year, holiday builds up at one-twelfth of the annual entitlement at the start of each month.
- Employers can tell workers when to take holiday (for example over Christmas) if they give notice at least twice as long as the leave.
- Holiday can't be replaced by pay in lieu, except when employment ends.
- Holiday keeps building up during sickness and family leave.
- Holiday pay must reflect normal pay, including regular overtime and commission, for the 4 weeks of EU-derived leave.
Example: An employee who works five days a week is entitled to at least 28 days of paid holiday a year. If the employer includes the 8 bank holidays in that, the employee has 20 days left to book; if bank holidays are given on top, they have 28 days to book plus the bank holidays.
Calculating Part-Time and Pro-Rata Holiday
Part-time workers get 5.6 times their usual working week. Someone working 3 days a week gets 16.8 days; someone working 22.5 hours a week gets 126 hours.
For someone who starts or leaves part way through the leave year, multiply the annual entitlement by the proportion of the year worked. From leave years starting on or after 1 April 2024, irregular-hours and part-year workers can accrue holiday at 12.07% of the hours they work in each pay period.
Carrying Holiday Over
Of the 5.6 weeks, 4 weeks generally have to be used in the leave year. They can be carried over if the worker couldn't take them because of sickness or family leave, or the employer didn't give them a reasonable chance to. The remaining 1.6 weeks can be carried over if the contract allows.
Sick Pay
There is no statutory right to paid sick leave beyond Statutory Sick Pay. From 6 April 2026, SSP is paid from the first qualifying day of sickness at £123.25 a week or 80% of average weekly earnings if lower, for up to 28 weeks. Employees can self-certify for the first seven days; after that the employer can ask for a fit note. Read our Statutory Sick Pay guide for details.
Time Off for Dependants
Employees can take a reasonable amount of unpaid time off to deal with an emergency involving a dependant — for example a child falling ill or childcare breaking down. There's no set number of days. Since April 2024 employees also have the right to one week of unpaid carer's leave a year to care for a dependant with a long-term care need.
Maternity Leave
Employees are entitled to up to 52 weeks of Statutory Maternity Leave from day one of employment: 26 weeks of Ordinary and 26 weeks of Additional Maternity Leave. Leave can start up to 11 weeks before the expected week of childbirth, and at least 2 weeks after the birth must be taken (4 weeks for factory workers).
Statutory Maternity Pay is paid for up to 39 weeks to employees with 26 weeks' service by the 15th week before the due week who earn at least the Lower Earnings Limit: 90% of average weekly earnings for 6 weeks, then £194.32 a week or 90% of earnings if lower. Use our maternity pay calculator to work it out.
Paternity Leave
Eligible employees can take 1 or 2 weeks of paternity leave, from the first day of employment. Since April 2024 it can be taken as two separate weeks at any point in the first 52 weeks after the birth or adoption. Statutory Paternity Pay (£194.32 a week or 90% of earnings if lower) needs 26 weeks' service.
Shared Parental Leave
Parents can share up to 50 weeks of leave and up to 37 weeks of pay by ending maternity or adoption leave early. They can take it at the same time or in turns, in up to three separate blocks each.
Unpaid Parental Leave
Eligible employees can take up to 18 weeks of unpaid parental leave per child before the child's 18th birthday, normally in blocks of a week and up to 4 weeks a year per child.
Adoption Leave
Adopters get the same 52 weeks of leave as birth mothers, and Statutory Adoption Pay on the same terms as SMP. One adopter can take adoption leave and the other paternity leave.
Parental Bereavement and Neonatal Care Leave
Parents who lose a child under 18, or have a stillbirth after 24 weeks of pregnancy, can take 2 weeks of parental bereavement leave. Since April 2025 parents of babies in neonatal care for 7 days or more can take up to 12 weeks of neonatal care leave, with statutory pay for those who qualify.
Holiday on Leaving
When someone leaves, you must pay them for statutory holiday they've built up in the current leave year but not taken. Work out accrued holiday as the annual entitlement × the proportion of the leave year worked, then subtract holiday already taken.
Example: An employee entitled to 28 days leaves exactly halfway through the leave year, having taken 10 days. They've accrued 14 days, so they're owed 4 days' pay. On a £36,000 salary (5 days a week), a day's pay is £36,000 ÷ 260 = £138.46, so they receive £553.85 before tax.
If they've taken more holiday than they've accrued, you can only recover the overpayment from their final pay if the contract or a written agreement allows it. Use our holiday pay on leaving calculator to work it out.
Compliance Checklist for Employers
- State holiday entitlement — and whether bank holidays are included — in the written statement of particulars.
- Give at least 5.6 weeks (28 days max) to every worker, pro rata for part-timers.
- Include regular overtime and commission in holiday pay.
- Keep records of holiday taken and owed.
- Pay SSP from the first qualifying day of sickness.
- Pay untaken holiday in the final pay packet.
Common Leave Mistakes Employers Make
- Treating bank holidays as extra by default — they only are if the contract says so.
- Paying basic pay only for holiday when the worker regularly earns overtime or commission.
- Letting holiday lapse during sickness — workers who couldn't take it can carry it over.
- Forgetting the first-year accrual rule — new starters build up holiday monthly.
- Not paying holiday on leaving — accrued, untaken holiday must be paid.
Summary of Leave Entitlements
| Leave Type | Entitlement | Paid? |
|---|---|---|
| Annual leave | 5.6 weeks (28 days max) | Yes — normal pay |
| Sick leave | Up to 28 weeks of SSP | SSP: £123.25/week or 80% of earnings |
| Maternity / adoption | 52 weeks | Up to 39 weeks statutory pay |
| Paternity | 1 or 2 weeks | Statutory Paternity Pay if eligible |
| Shared parental | Up to 50 weeks | Up to 37 weeks statutory pay |
| Unpaid parental | 18 weeks per child | No |
| Dependants (emergencies) | Reasonable time | No (unless contract says) |
| Carer's leave | 1 week a year | No |
| Parental bereavement | 2 weeks | Statutory pay if eligible |
Keep track of balances with our holiday entitlement calculator, and record holiday and sick pay on payslips with our free payslip generator. For official guidance, see GOV.UK holiday entitlement.