Definition
The practice of allowing employees to transfer unused annual leave from one leave year to the next. While employers are not required to allow carry-over of the basic statutory entitlement, specific circumstances may require it, and many employers permit limited carry-over as a benefit.
UK Context
Under the Working Time Regulations 1998, the first four weeks (20 days) of statutory leave cannot normally be carried over, but the additional 1.6 weeks (8 days) can be if the employer allows. However, carry-over is required if an employee was unable to take leave due to sickness or maternity leave.
Best Practices
- Set a clear carry-over policy with a maximum number of days and a deadline for using them
- Remind employees of upcoming deadlines well in advance to encourage timely leave-taking
- Track carry-over days separately from the new year's entitlement for accurate reporting
Frequently Asked Questions
How much annual leave can be carried over?
The additional 1.6 weeks (8 days for full-time workers) can be carried over if the employer's policy permits. The first four weeks normally cannot, except when the employee was unable to take leave due to sickness, maternity, or other protected reasons.
What happens to unused leave when someone is on long-term sick?
Employees on long-term sick leave continue to accrue statutory annual leave. If they are unable to take it during the leave year, the first four weeks must be carried over. The carry-over period is typically 18 months from the end of the leave year.