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Remote Work & Leave Policies: Managing Hybrid Teams in 2026

Practical guidance on adapting your leave policies for remote and hybrid working, including multi-location bank holidays and flexible working arrangements.

The Grove Team

Grove HR

20 January 202611 min read
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Quick Answer: Do Remote Workers Get the Same Leave?

Yes, remote workers are entitled to the same statutory leave as office-based employees. However, hybrid and remote arrangements create complexities around:

  • Which bank holidays apply
  • Working across time zones
  • Flexible hours and leave tracking
  • "Workations" and working abroad

Remote Work Statistics (2026)

Understanding the landscape:

MetricPercentage
UK workers fully remote12.7%
UK workers hybrid28%
Workers preferring hybrid65%
Companies offering remote58%

Source: ONS Labour Market Statistics, 2024


Leave Entitlement for Remote Workers

Statutory Entitlement

Remote workers receive the same statutory entitlement:

  • 5.6 weeks (28 days for full-time)
  • Pro-rata for part-time
  • Same accrual rules

Company Policies

Consider whether remote workers should receive:

  • Same annual leave allocation
  • Enhanced home working allowance (instead of more leave)
  • Flexibility on when leave is taken

Bank Holidays for Multi-Location Teams

The Challenge

A UK company with remote workers in multiple locations faces:

  • Different bank holidays (England, Scotland, Northern Ireland)
  • International workers with local bank holidays
  • Customers expecting cover on some holidays

Solutions

Option 1: Location-Based Holidays

  • Workers observe their local bank holidays
  • More complex to administer
  • Fairer for international teams

Option 2: Company-Standard Holidays

  • Everyone follows HQ bank holidays
  • Simpler administration
  • May disadvantage some locations

Option 3: Floating Holidays

  • Convert bank holidays to flexible days
  • Employees choose when to take them
  • Maximum flexibility

Example Policy

"All employees receive the equivalent of 8 bank holidays annually. Employees may choose to observe UK bank holidays or take these as flexible days throughout the year, subject to business needs and manager approval."


Time Zone Considerations

Core Hours

For distributed teams, establish:

  • Core hours: When everyone must be available (e.g., 10am-3pm UK)
  • Flexible hours: Start/end times flexible
  • Meeting-free blocks: Protected focus time

Leave Across Time Zones

ScenarioGuidance
Half-day leaveBased on employee's contracted hours, not HQ
Emergency leaveLocal time applies
Public holidaysFollow agreed policy (above)
Meeting coverageCommunicate leave in advance

Managing Leave for Hybrid Workers

Tracking Challenges

Hybrid workers may blur boundaries between:

  • Working from home vs annual leave
  • Sick leave vs working through illness at home
  • Flexible hours vs unofficial leave

Clear Boundaries

Establish policies covering:

1. Working from Home ≠ Leave

  • WFH days are full working days
  • Same availability expectations
  • Clear distinction from leave

2. Sick Leave

  • Same sick leave policy applies at home
  • If too ill to work at home, take sick leave
  • Don't encourage "working through" illness

3. Leave Requests

  • Same process regardless of location
  • Advance notice requirements unchanged
  • Manager approval still required

Workation Policies

A "workation" combines working remotely with vacation-like locations.

Should You Allow Workations?

ProsCons
Employee wellbeingTax complications
Retention benefitInsurance issues
Productivity boostTime zone challenges
Attracting talentSecurity risks

Workation Policy Elements

If allowing workations:

  1. Approval process: Manager and HR approval required
  2. Duration limits: Maximum 2-4 weeks per year
  3. Location restrictions: Approved countries only
  4. Technical requirements: Reliable internet, security compliance
  5. Working hours: Must be available during core hours
  6. Tax implications: Employee responsibility (with guidance)
  7. Insurance: Confirm cover applies

Tax Warning

Working abroad (even temporarily) can trigger:

  • Tax obligations in the host country
  • Social security complications
  • Permanent establishment risks for the company

Always consult tax advisors before approving extended workations.


Flexible Working and Leave

Compressed Hours

Employees on compressed schedules (e.g., 4 longer days):

  • Same total hours per week
  • Leave calculated in hours, not days
  • Bank holidays may need pro-rating

Example:

  • 4-day week, 10 hours/day
  • Annual leave: 28 days x 8 hours = 224 hours
  • Divide by 10 = 22.4 days leave

Part-Time Remote

Employees working part-time hours remotely:

  • Pro-rata leave entitlement
  • Clear about which days are worked
  • Bank holidays on non-working days don't count

Communication Best Practices

Leave Visibility

For distributed teams:

  • Shared calendar showing all leave
  • Slack/Teams status updates
  • Handover notes before leave
  • Out-of-office messages with alternatives

Team Coordination

  • Avoid multiple team members off simultaneously
  • Consider time zone coverage when approving leave
  • Plan ahead for key deadlines/periods

Managing Remote Leave with Grove

Grove handles distributed team complexities:

  • Multi-location bank holidays: Configure per country/region
  • Time zone display: See team leave in local times
  • Flexible leave types: TOIL, floating holidays, workations
  • Calendar sync: Integrate with Google/Outlook calendars
  • Mobile access: Request and approve leave from anywhere

Get started with Grove to simplify leave management for hybrid teams.

Tags:

remote workhybrid workingleave policyflexible workingdistributed teams

The Grove Team

Grove HR

The Grove Team writes about HR best practices, compliance, and workplace culture for Grove. Helping UK businesses cultivate thriving teams.

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