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Accruals and leave years

There are two ways your employer will manage your holiday entitlement, through either a 'leave year' or an 'accrual' system (which can only operate in the first year of your employment).

Leave years

Your 'leave' or 'holiday' year is a term used to describe the period in which your employer expects you to take your annual leave.

In your employment contract you may have an agreement with your employer about when your holiday year runs (eg 1 January to 31 December). If you do not have an agreement then your year will start on:

• 1 October 2023 (if you started work before then)
• the date you started work (if you started work after the 1 October 2023)

If you start a new job part way through a leave year then you will be entitled to a proportion of your leave, depending on how long is left in the leave year.

For example, if you start half way through the leave year then you will be entitled to half of your leave. This will then reset to the follow up at the start of the new leave year.

Similarly, if you leave your job part way through a leave year you will be entitled to a proportion of your leave.

You may find it helpful to use the holiday entitlement calculator on the Business Link website. It allows you to calculate holiday entitlement for full or part years based on the set days or hours you work each week.

• Calculate your holiday entitlement using Business Link's calculator Opens new window

Accruals

Some employers run an 'accrual' system, where holiday entitlement is built up over the first year of employment. This means that for every month you work, you become entitled to one twelfth of your annual entitlement. So, after six months, you would be entitled to a half of your annual entitlement.

Accrual normally continues during statutory absences like maternity leave.

Carrying over holidays

You do not have an automatic right to carry leave over. Of your 5.6 weeks entitlement, you must take the first four weeks of the leave, in the year that it is allocated. You can only carry forward the additional 1.6 weeks' leave if it remains untaken, with your employers permission or if it allowed by your employment contract.

If you have a leave entitlement more generous then the statutory minimum, your employer may allow you to carry over any of this additional entitlement if it remains untaken. However, this should be set out in your contract of employment.

Payment in lieu for holiday or 'buying out'

You are not allowed to exchange any untaken statutory holiday entitlement for pay. You must take all of your statutory holiday entitlement each year.