How Much Annual Leave Are Employees Entitled To In the UK?

If you’re running a small business, annual leave can feel deceptively simple: you hire someone, they work hard, and they take some time off. But once you’re the one approving requests, calculating entitlements, and dealing with bank holidays, it quickly turns into a “wait, what are we actually required to do?” situation.

And because it’s such a common question, employees will often ask you directly (or Google it themselves): how many holidays do you get a year?

Getting your legal annual leave position right matters for compliance, but it’s also a big part of keeping your team happy and avoiding disputes. Below we’ll break down the UK rules in plain English, with practical steps you can use in your business from day one.

What Counts As “Legal Annual Leave” In The UK?

In the UK, most workers are legally entitled to paid annual leave under the Working Time Regulations 1998. In simple terms, this is the minimum amount of time off you must provide (and pay) each leave year.

When we talk about legal annual leave, we’re typically talking about:

• Statutory holiday entitlement (the legal minimum), and
• Any extra contractual leave you choose to offer on top (common in competitive hiring markets).

One key point for small businesses: annual leave isn’t just an HR “nice to have”. It’s a legal entitlement, and issues tend to arise when:

• Leave isn’t being recorded properly;
• Part-time or irregular-hour staff aren’t given the correct pro-rated entitlement;
• Bank holidays are handled inconsistently;
• Holiday pay is calculated incorrectly (especially where commission or overtime is involved); or
• You don’t have a clear policy on booking, carry-over, and shutdown periods.

This is why it’s worth putting the rules into writing in your Employment Contract and (for day-to-day processes) your Staff Handbook.

How Many Holidays Do You Get A Year (And What’s The Legal Minimum)?

If someone asks, “how many holidays do you get a year in the UK?”, the standard legal answer for a full-time worker is:

5.6 weeks’ paid holiday per year.

For someone who works 5 days a week, that usually works out as:

• 28 days paid annual leave per year (5.6 x 5 = 28).

That figure (28 days) is often quoted because it’s easy to understand, but the legal entitlement is actually expressed in weeks, not days. That matters if your employee doesn’t work a standard five-day week.

Does The Legal Minimum Include Bank Holidays?

It can do, but it doesn’t have to. The legal minimum is 5.6 weeks total, and you can decide (and clearly state in the contract) whether bank holidays are:

• Included within the 5.6 weeks; or
• Given in addition to the 5.6 weeks (meaning the employee gets more than the statutory minimum).

This is where wording is crucial. If your contract says leave is “inclusive of bank holidays”, that usually means bank holidays are counted within the employee’s overall entitlement. If you’re unsure how to phrase it, it’s worth understanding exactly what inclusive of bank holidays means in practice.

Is There A Cap On Statutory Leave?

Yes. Statutory leave is capped at 5.6 weeks. So for someone who works 6 days per week, the entitlement doesn’t keep increasing indefinitely.

Example:

• 6 days/week x 5.6 weeks = 33.6 days
• But statutory entitlement is capped at 28 days

That doesn’t stop you offering more than 28 days if you want to - but anything over the statutory minimum becomes contractual, so you’ll want clear terms about how it accrues and what happens on termination.

How Do You Calculate Holiday For Part-Time, Irregular Hours, And Zero-Hours Staff?

This is where many small businesses get caught out. If your staff don’t work a standard “5 days per week” pattern, you still need to provide legal annual leave - but you must calculate it pro rata.

Part-Time Staff

For part-time employees with regular working days, holiday is usually calculated in days.

Example: if someone works 3 days per week:

• 5.6 weeks x 3 days = 16.8 days per year

In practice, many employers round up or allow staff to book leave in hours to avoid rounding disputes. Whatever approach you choose, keep it consistent and document it.

Irregular Hours And Casual Work

If someone works variable hours, you’ll usually track entitlement in hours, not days.

Irregular-hours and “part-year” workers can be more complex. Following changes that took effect in 2024, many employers now calculate statutory holiday for irregular-hours and part-year workers by accruing leave at 12.07% of hours actually worked in the pay period (subject to the statutory maximum). You can also use rolled-up holiday pay for these workers if it’s clearly shown as a separate item on the payslip and paid at 12.07% of pay for work done (again, if used correctly and consistently).

The key practical takeaway is: you need a method that properly reflects their working pattern and ensures they receive at least the legal minimum overall - and you should document the approach in the contract and make sure payroll can apply it reliably.

New Starters: Holiday Accrual During The Year

Employees don’t need to complete a probation period to start accruing statutory annual leave - it accrues from day one.

That said, you can set reasonable rules in the contract about:

• How much leave can be taken in the first few months;
• Whether leave must be “accrued” before it’s taken; and
• What approval process applies.

Just be careful: “probation” should not be treated as “no rights”. It’s better to manage expectations with a well-drafted probation clause and clear booking rules rather than informally discouraging leave.

Bank Holidays, Shutdown Periods, And When You Can Refuse Leave

Once you know the minimum entitlement, the next operational question is: how do you manage annual leave so the business can actually run?

Do You Have To Give Employees Bank Holidays Off?

No - not automatically. Bank holidays are not a separate legal entitlement by themselves.

You can:

• Require employees to work bank holidays (if the contract allows and you handle pay correctly); or
• Close the business on bank holidays and require staff to use their annual leave entitlement.

Problems usually arise when bank holidays interact with someone’s non-working days. For example, if an employee normally doesn’t work Mondays, they won’t automatically “lose out” because a bank holiday falls on Monday - but you need to apply your policy fairly and consistently. It’s worth having a clear approach for what happens if a non-working day falls on a bank holiday, especially where your workforce has mixed patterns.

Can You Dictate When Employees Take Holiday?

Yes, in many circumstances you can - but you must follow the notice rules.

Employers can:

• Require staff to take leave at certain times (for example, during a Christmas shutdown); and
• Refuse leave requests if granting them would cause genuine operational issues.

However, it’s not as simple as “we’re short-staffed so no one can take holiday ever”. In practice, you should:

• Have a documented process for requesting leave;
• Apply it consistently (to reduce discrimination risk); and
• Follow the statutory notice rules when approving, refusing, or requiring annual leave.

As a general rule under the Working Time Regulations, an employee should give notice of at least twice the amount of leave they want to take (unless your contract/policy sets a different rule). If you’re refusing a request, you generally need to give counter-notice at least the same length as the leave requested. If you’re requiring an employee to take leave on particular dates (for example, a shutdown), you generally need to give notice of at least twice the length of the leave you’re making them take (again, unless the contract/policy sets different arrangements).

If you want a deeper look at your options, it’s helpful to understand the rules around dictating holidays and how to do it without damaging trust with your team.

What About Mandatory Office Closures Or Seasonal Businesses?

If your business shuts down seasonally (for example, you run a small hospitality venue, childcare service, or a business dependent on the school year), it’s common to build this into contracts.

The key is clarity:

• Confirm the leave year dates (e.g., calendar year or anniversary year).
• State whether shutdown days are deducted from entitlement.
• Explain the booking process for the remaining leave.

Done properly, this can reduce last-minute disputes and help staff plan ahead.

Holiday Pay: What Do You Actually Need To Pay?

Knowing how many holidays do you get a year is only half the picture. The other half is: what do you pay someone when they take holiday?

For many salaried staff with fixed hours, holiday pay is straightforward: it’s their normal pay.

But for staff with variable hours, overtime, commission, or allowances, holiday pay can be more complicated. A few practical reminders:

• Holiday pay should reflect “normal” pay - if an employee regularly earns overtime/commission, you may need to factor that into holiday pay calculations.
• For workers with variable pay, holiday pay is often worked out using an average over a reference period (commonly up to 52 weeks, ignoring weeks where no pay was earned), which is why good records matter.
• Keep records of hours worked and pay elements so you can evidence how you calculated holiday pay.
• Be consistent with your pay periods and calculations (especially if you have casual staff).

If you’re not confident your holiday pay approach is compliant, it’s worth getting advice early. Holiday pay disputes can escalate quickly, and they’re often avoidable with the right setup.

Common Annual Leave Mistakes Small Businesses Should Avoid

Even with the best intentions, annual leave admin can go sideways - especially when you’re juggling payroll, staffing, and client work.

Here are some common pitfalls we see for small businesses:

1) Unclear Contract Wording About Bank Holidays

If your contract doesn’t clearly say whether bank holidays are included, you can end up in a situation where employees assume they’re entitled to bank holidays plus 28 days - even if that’s not what you intended.

Clear drafting up front is usually much cheaper than trying to “fix” expectations later.

2) Inconsistent Treatment Between Employees

If one team member is allowed to carry over leave informally (or gets special treatment around peak periods), that can quickly create tension and grievances.

A consistent policy in your contract and handbook helps you stay fair - and it makes it easier to justify decisions when you have to refuse leave.

3) Not Pro-Rating Leave Properly

Part-time staff, shift workers, and irregular-hour workers still have legal rights. If you’re not pro-rating correctly, you risk underpaying entitlement (which can become a wage/holiday claim).

4) Letting Leave Build Up Without A Plan

If employees don’t take enough leave during the year, it can cause:

• Wellbeing and burnout issues;
• Operational issues when everyone tries to take leave at once; and
• Legal risk, depending on why leave wasn’t taken and whether staff were encouraged/able to take it.

Having a reasonable process for reminders and approvals can make a big difference.

5) Trying To “Sort It Out Later” Without Proper Documentation

Annual leave becomes much easier to manage when it’s part of your legal foundations. Putting it into the right documents early helps you avoid disputes down the track, especially as you grow and hire more staff.

If your employee documentation needs tightening, a tailored Employment Contract and supporting Staff Handbook can set clear ground rules around entitlements, booking procedures, and business shutdown periods.

Key Takeaways

• The legal minimum annual leave entitlement in the UK is 5.6 weeks per leave year (which is usually 28 days for a full-time employee working 5 days a week).
• If someone asks how many holidays do you get a year, the right answer depends on their working pattern (days per week or hours) and whether bank holidays are included in their entitlement.
• Bank holidays can be included within statutory leave, but this must be clearly stated in the contract to avoid misunderstandings.
• Part-time and irregular-hours staff must still receive legal annual leave, typically calculated pro rata (and for irregular-hours/part-year workers, this is often handled via accrual and/or rolled-up holiday pay under the post-2024 framework).
• You can refuse or require annual leave in certain circumstances, but you should follow the notice rules and apply decisions consistently.
• Clear documentation in your Employment Contract and policies (such as in a Staff Handbook) helps prevent disputes and keeps your business compliant as you grow.

If you’d like help setting up or reviewing your employee leave terms, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.