Unless you have got some HR software (which we would highly recommend), managing the holiday requests within your business can be hassle enough – making sure your business is fully staffed at key times, dealing with conflicts, and just keeping track.
So what about the holiday NOT being taken, surely you can just let that slip? Well, not really, unless you want to run the risk of problems storing up in your business and striking when you least need it.
Don’t worry though, with a bit of proactiveness, and a clear policy, you can keep everything under control.
Your holiday management tools
As we have said, a small investment in HR software which includes holiday management is well worth it (ask us for more details).
Next, for annual leave both taken and passed up in a holiday year, a policy covering all the rules of your business will give clarity to both you and your team.
Taking holiday – legal requirements
All full time employees are entitled 4 weeks annual leave, equivalent to 20 days of paid leave a year. Those working less than full time have it pro rata. Annual leave accrues from day one, and can only be paid in lieu when someone leaves.
Most employers will take as a starting point “Use it” for annual leave entitlement, over the course of an annual period. This provides clarity for all, and helps keep the spirit and purpose of annual leave entitlement: which is, of course, to provide employees with adequate rest and recuperation.
However, there are a number of nuances to understand, and which mean that a blanket “Use it or lose it” approach cannot work:
- Annual leave can only be denied if it is reasonable and within business reasons.
- If an employee is off long-term sick, it is important to clearly communicate and understand when they are returning to work. Annual leave does not accumulate when an employee is on unpaid leave.
- Have an appropriate and clear leave policy in place to reinforce how to apply for annual leave and the entire process.
That final point shows the proactive steps you need to prove to have taken if you are to regulate and manage any leave within your workforce.
Taking a proactive approach does maintain a sense of order by focusing employees on taking reasonably regular leave to recharge their batteries. The rest and recharge will improve wellbeing productivity and overall job performance.
Your annual leave policy
Best practice would be to ensure that all of the above is clearly explained in an annual leave policy and we can help you do this.
Your policy can also explain other details such as a “first come, first served” principle which will help you manage peak times of year, like Christmas, where you may have everyone asking for the same days off at once. Or conversely it may explain a Christmas or summer shutdown policy, where you close the workplace and require everyone to take annual leave at specific times.
For help with reviewing or writing an annual leave policy, or to find out more about HR software that will massively simplify your HR administration including managing leave, please contact your local HR Dept.