UK Annual Leave Entitlement 2026: Complete Employer's Guide

The Basics: 28 Days Statutory Minimum

Under the Working Time Regulations 1998, almost all workers in the UK are entitled to 5.6 weeks of paid annual leave per year. For someone working five days a week, that equates to 28 days (5.6 x 5 = 28).

This is the statutory minimum — employers can offer more through the employment contract, but never less. The 28 days is the maximum statutory entitlement regardless of how many days per week an employee works, so a six-day worker still gets 28 days, not 33.6.

Importantly, this entitlement applies to all workers, not just employees. Agency workers, zero-hours contract workers, and casual staff all have the same right to 5.6 weeks of paid leave.

Can Bank Holidays Be Included?

Yes. There is no statutory right to bank holidays off, nor is there a right to extra pay for working on a bank holiday (unless the contract says otherwise). Employers can count bank holidays as part of the 28-day statutory entitlement.

In practice, most UK employers give bank holidays on top of a base holiday allowance. A common arrangement is "20 days + 8 bank holidays = 28 days". But some employers, particularly in hospitality, retail, and healthcare, require staff to work bank holidays and include them in the 28-day total.

England and Wales have 8 bank holidays per year, Scotland has 9, and Northern Ireland has 10. TimeTally automatically handles the correct bank holidays for each nation and lets you choose whether they are included in or added to the statutory entitlement.

Part-Time Employees: Pro-Rata Calculation

Part-time workers are entitled to a proportional (pro-rata) amount of the 28-day statutory minimum based on the number of days they work per week.

Use our free pro-rata holiday calculator to quickly work out entitlements for part-time staff or mid-year starters.

For employees who work irregular hours or are on zero-hours contracts, holiday entitlement is calculated as 12.07% of hours worked. This was established by the government and reflects the fact that 5.6 weeks is 12.07% of a 46.4-week working year (52 weeks minus 5.6 weeks of leave).

Mid-Year Starters and Leavers

When an employee starts or leaves partway through the leave year, their entitlement must be pro-rated based on the proportion of the year they have worked.

For example, if your leave year runs January to December and an employee starts on 1 July, they have 6 months remaining — so they are entitled to half their annual allowance (14 days if entitled to 28 days full year).

When an employee leaves, if they have taken more leave than their pro-rated entitlement, the employer can deduct the excess from their final pay — but only if the employment contract allows this. Always include a "clawback" clause in contracts to cover this situation.

Conversely, if the employee has taken less than their pro-rated entitlement, the untaken leave must be paid out.

Carrying Over Leave

The default position under UK law is that statutory leave must be taken in the leave year it relates to and cannot be carried over. However, there are important exceptions:

• The 8-day carryover rule — The 28-day entitlement is split into two parts: 20 days (from the EU Working Time Directive) and 8 days (the additional UK entitlement). The 8 additional days can be carried over if the employment contract allows it.
• Sickness during leave — If an employee is off sick and unable to take their holiday, they can carry over 20 days into the following year (with an 18-month window to use it).
• Maternity, paternity, or adoption leave — Employees on family leave can carry over any statutory leave they could not take.
• Employer prevents leave being taken — If the employer is the reason leave was not used (e.g. refused requests due to business needs), the employee can carry it over.

Many employers offer more generous carryover policies contractually — for example, allowing 5 days to be carried over into Q1 of the following year.

Accrual During the First Year

New employees accrue holiday entitlement from their first day of employment. In the first year, employers can use an accrual system where employees build up leave month by month at a rate of one-twelfth of their annual entitlement per month.

For example, an employee entitled to 28 days per year accrues 2.33 days per month. After three months, they would have accrued roughly 7 days.

From the second year onwards, employees are entitled to their full annual allowance from the start of the leave year.

Enhanced Contractual Entitlement

Many employers offer more than the statutory 28 days. Common enhancements include:

• Additional days — e.g. 25 days + 8 bank holidays = 33 days total
• Long-service awards — extra days after a set number of years (e.g. +1 day after 3 years, +2 days after 5 years)
• Birthday off — an extra day for the employee's birthday
• Buy/sell holiday — allowing employees to purchase additional days or sell unused days back
• Unlimited holiday — a growing trend, particularly in tech companies

Whatever enhanced entitlement you offer, track it accurately using a holiday tracker to avoid errors and disputes.

Common Mistakes Employers Make

How TimeTally Helps

TimeTallyautomatically calculates statutory entitlement, handles part-time pro-rata, accounts for mid-year starters, and manages bank holidays for England & Wales, Scotland, and Northern Ireland. Employees can see their remaining balance on their dashboard, submit leave requests, and managers approve with one click.

Key Takeaways

• All UK workers are entitled to 5.6 weeks (28 days for full-time) paid annual leave.
• Bank holidays can be included in the 28-day statutory minimum.
• Part-time workers get a pro-rated entitlement: days per week x 5.6.
• Mid-year starters and leavers need their entitlement pro-rated.
• Statutory leave generally cannot be carried over, with specific exceptions for sickness and family leave.
• Always include a clawback clause in employment contracts.
• Use a leave tracker to avoid calculation errors and disputes.