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Carry on carrying over: holiday changes you need to know about
June 9, 2025
By Owen John
Our employment solicitor Owen explains all.
We have previously written about the holiday pay changes, which you can read here, as well as specific articles relating to rolled up holiday and changes relating to holiday for irregular hours workers.
In short, there are now positive obligations on employers to encourage workers to use their annual leave. If employers fail to do so, accrued leave could continue to accumulate, leaving significant holiday deficits further down the line.
When can a worker carry over leave?
Carry-over of annual leave is allowed in certain situations. As an employer, you may have more beneficial contractual entitlements that deal with the carry-over of annual leave. However, the below reflects the statutory position.
A worker is entitled to carry over leave in circumstances where they are unable to take their leave because of sickness absence. This is in respect of 4 weeks’ leave only and will be lost if not used within 18 months of the end of the leave year to which it relates.
The full leave entitlement (5.6 weeks’) can be carried over into the following leave year if the worker is unable to take leave due to statutory absence (e.g. maternity / paternity leave). There is no time-limit for when this leave would ‘expire’ (unlike the case with carry-over due to sickness absence, outlined above).
What are the new rules regarding the carry-over of annual leave?
The new regulations introduce the following principals:
In each of these situations, 4 weeks of leave could potentially be carried forward until the point that a full leave year has elapsed where a worker has taken all of their holiday entitlement and has been paid for it correctly.
Why is this important?
Employers face the risk of Employment Tribunal claims where holiday pay is not paid correctly. These claims can involve significant sums.
Our advice to you
If you would like to discuss your holiday pay arrangements, or would like assistance with any other employment matter, get in touch with our employment law expert, Owen, using ojohn@darwingray.com, 029 2082 9100, or via our contact form to see how we can support you.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
