Leave Policy Generator
Create a UK-compliant leave policy in under 5 minutes. Answer a few questions about your company, and we will generate a professional, ACAS-aligned policy document ready to use.
What Should a Leave Policy Include?
A well-drafted leave policy is one of the most important documents in any employee handbook. It sets clear expectations for both employer and employee, reduces the risk of disputes, and helps ensure your organisation complies with UK employment law. Whether you are drafting your first policy or updating an existing one, there are several key areas that every UK leave policy should cover.
At a minimum, your leave policy should state the total annual leave entitlement (which must meet the statutory minimum of 5.6 weeks under the Working Time Regulations 1998), whether bank holidays are included in or additional to the entitlement, the leave year start and end dates, and how entitlement is calculated for part-time workers and new starters.
Beyond the basics, a comprehensive policy should also address carry-over rules, the process for requesting and approving leave, notice periods required, any blackout or restricted periods, and what happens to unused leave when an employee leaves the company. It should cover sickness absence procedures, including notification requirements, fit note thresholds, SSP entitlement, and any enhanced company sick pay.
ACAS recommends that leave policies also include provisions for compassionate leave, time off for dependants (a statutory right under the Employment Rights Act 1996), and any company-specific arrangements such as TOIL (time off in lieu) or holiday buy/sell schemes. The policy should be written in plain English, be easily accessible to all employees, and include a review date to ensure it stays up to date with legislative changes.
UK Statutory Requirements
UK employment law sets several non-negotiable requirements that every leave policy must comply with. Understanding these requirements is essential to avoid costly tribunal claims and ensure your employees receive their legal entitlements.
Working Time Regulations 1998
All workers are entitled to a minimum of 5.6 weeks (28 days for full-time) paid annual leave per year. This cannot be replaced by a payment in lieu except when the employment relationship ends. Employers can include bank holidays within this 28-day minimum.
Pro-rata entitlement for part-time workers
Part-time workers are entitled to the same 5.6 weeks of leave, calculated on a pro-rata basis. An employee working 3 days per week is entitled to 16.8 days (5.6 x 3). The Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000 prohibit treating part-time workers less favourably than full-time comparators.
Carry-over rules
Under the Working Time Regulations, 1.6 weeks (8 days for full-time) of the statutory entitlement can be carried over to the next leave year by agreement. The remaining 4 weeks (20 days) must be taken within the current leave year. UK case law (Plumb v Duncan Print Group, NHS Leeds v Larner) has established that employees on long-term sick leave may carry over their full 4-week EU-derived entitlement.
Statutory Sick Pay (SSP)
Employees earning above the Lower Earnings Limit (£125/week for 2025/26) are entitled to SSP from the fourth qualifying day of sickness, currently £118.75 per week for up to 28 weeks. Employers must have clear procedures for sickness notification and evidence (self-certification for 7 days or fewer, fit note for longer).
Time off for dependants
Under the Employment Rights Act 1996, all employees have a statutory right to take reasonable unpaid time off to deal with emergencies involving dependants. This includes illness, injury, death, or unexpected disruption to care arrangements. There is no set limit on the number of occasions, but the time off must be reasonable in the circumstances.
Equality Act 2010 considerations
Leave policies must not discriminate against employees with protected characteristics. Disability-related absences may require reasonable adjustments to absence management triggers. Pregnancy-related absences must never be counted against an employee in absence management processes.
Common Mistakes in Leave Policies
Even experienced HR professionals can fall into common traps when drafting or updating leave policies. These mistakes can lead to employee grievances, tribunal claims, or simply poor staff morale. Here are the most frequent issues we see in UK leave policies.
Offering below the statutory minimum
Some policies inadvertently offer fewer than 28 days for full-time workers, particularly when bank holidays are not clearly accounted for. If your policy states "20 days plus bank holidays", you are meeting the minimum. But if it says "20 days" without mentioning bank holidays, you may be non-compliant.
Blanket "use it or lose it" without exceptions
While employers can require leave to be taken within the year, a rigid "use it or lose it" policy can be unlawful if it fails to account for employees who were unable to take leave due to sickness, maternity, or the employer failing to facilitate leave. UK case law requires employers to actively encourage employees to take their leave.
No pro-rata calculation for part-time workers
Failing to clearly explain how part-time entitlement is calculated is a common source of disputes. The policy should include worked examples showing that entitlement is 5.6 times the number of working days per week.
Vague sickness reporting procedures
Policies that say "inform your manager" without specifying when, how, and what information to provide create ambiguity. Best practice is to specify notification by phone (not text) before the start of the shift, with the nature of illness, expected duration, and any urgent work that needs covering.
Ignoring the Equality Act in absence management
Applying absence triggers or carry-over restrictions without considering disability-related absences or pregnancy-related sickness can amount to indirect discrimination. Your policy should explicitly state that these absences will be treated separately.
No review date or version control
Employment law changes frequently. A policy without a review date quickly becomes outdated. Include a review date (at least annually) and version number so employees and managers know they are working from the current document.
Frequently Asked Questions
What should a UK leave policy include?
A comprehensive UK leave policy should include: annual leave entitlement (minimum 5.6 weeks), whether bank holidays are included or additional, the leave year dates, carry-over rules, the process for requesting and approving leave, minimum notice periods, sick leave procedures (notification requirements, SSP, and any enhanced company sick pay), compassionate leave allowance, TOIL arrangements if applicable, the approval workflow, and a review date. It should also reference the Working Time Regulations 1998 and the Employment Rights Act 1996.
What is the minimum annual leave entitlement in the UK?
Under the Working Time Regulations 1998, all UK workers are entitled to a minimum of 5.6 weeks of paid annual leave per year. For someone working 5 days per week, this equals 28 days. This can include the 8 UK bank holidays, or employers may offer bank holidays on top of the statutory minimum. Part-time workers receive the same 5.6 weeks on a pro-rata basis.
Can employers include bank holidays in the 28-day minimum?
Yes. There is no legal requirement to give employees bank holidays off as paid days in addition to their 28-day entitlement. Many employers include the 8 bank holidays within the 28-day minimum, meaning employees receive 20 discretionary days plus 8 bank holidays. However, offering bank holidays on top of the minimum (giving 36 total days) is a common perk used to attract and retain staff.
How much annual leave can be carried over to the next year?
By default, up to 1.6 weeks (8 days for a full-time worker) of the statutory entitlement can be carried over by agreement between employer and worker. The remaining 4 weeks (20 days) must be taken in the current year. However, employers can offer more generous contractual carry-over, and special rules apply where an employee has been unable to take leave due to sickness, maternity, paternity, or adoption leave.
Do I need a formal leave policy?
While there is no specific UK law requiring a formal written leave policy, ACAS strongly recommends having one. A written policy ensures consistency, reduces misunderstandings, sets clear expectations, and provides evidence of fair treatment if a dispute arises. Employment tribunals will look at whether the employer had a clear, communicated policy when assessing the fairness of any leave-related decisions.
Is this leave policy generator legally binding?
No. The policies generated by this tool are professional templates based on current UK employment law and ACAS guidance. They provide an excellent starting point, but should be reviewed by a qualified HR professional or employment solicitor before formal adoption. Every organisation has unique circumstances that may require tailored provisions. Grove HR provides this tool as a free resource and does not offer legal advice.
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