Rules on carrying over annual leave to be relaxed to support key industries during COVID-19

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Article

27 March, 2020

The government have announced that workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years.

This means that the:

  • Government are to amend regulations to allow annual leave to be carried over into the next 2 years
  • measures will ensure workers won't lose their leave entitlements
  • move gives flexibility to business at a time when it is needed most

Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next two leave years, under measures introduced by Business Secretary Alok Sharma on Friday 27 March 2020.

Currently, almost all workers are entitled to 28 days holiday including bank holidays each year. However, most of this entitlement cannot be carried between leave years, meaning workers lose their holiday if they do not take it.

There is also an obligation on employers to ensure their workers take their statutory entitlement in any one year - failure to do so could result in a financial penalty.

The regulations will allow up to four weeks of unused leave to be carried into the next two leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.

This will mean staff can continue working in the national effort against the coronavirus without losing out on annual leave entitlement.

The changes will also ensure all employers affected by COVID-19 have the flexibility to allow workers to carry over leave at a time when granting annual leave could leave them short-staffed in some of Britain's key industries, such as food and healthcare.

The changes will amend the Working Time Regulations, which apply to almost all workers, including agency workers, those who work irregular hours, and workers on zero-hours contracts.

The change is aimed at allowing businesses under particular pressure from the impacts of COVID-19 the flexibility to better manage their workforce, while protecting workers' right to paid holiday.

The full article and information can be found here on the Government website.

For more information contact Emma Swan in our Employment & HR department via email or phone on 0333 207 1154. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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