Workplace rules around leave, pay and time off can sometimes feel a bit unclear. What happens if someone’s booked holiday but it’s suddenly all hands on deck?
We’ve pulled together some of your most frequently asked questions, with straightforward answers to help you stay informed.
If you’ve ever found yourself thinking, “Can I…?” or “Do I have to…?” – this one’s for you.
Can I cancel an employee’s leave after it’s been approved?
Employers can cancel approved leave but should have a good business reason for this - for example, if it would affect productivity during busy periods. It’s also important to note that, by law, an employer must make sure workers can take the amount of holiday they're entitled to during the year.
Can I decide when staff holiday is taken?
Yes, you can if you need to. For example, you may decide to shut over Christmas or bank holidays and have your staff take their paid holiday during this time, even if this hasn’t been normal practice in the past. However, if you decide to do this then you should tell your staff at least twice as many calendar days before as the amount of days you need them to take.
How soon are new starters entitled to take holiday?
Workers begin to build up holiday entitlement as soon as they start the job. In the first year of a job, employers are entitled by law to use an ‘accrual’ system for approving how much leave entitlement is taken and when: the new starter builds up at a rate of one twelfth of their holiday each month. Alternatively, employers can use their discretion to allow workers to take annual leave before they’ve worked the equivalent accrual time.
Do we need a holiday policy?
UK employers are not required in law to have a holiday policy, but creating a clear set of guidelines can prevent problems further down the line. The last thing managers want is an influx of holiday requests that could leave teams without enough cover and potentially cause resentment when approval is refused.
A well written holiday policy, shared with your workforce, provides essential information so breaks can be planned with more certainty even during your busiest periods.
Do we need a health and safety policy?
If you have five or more employees in place, you must write a health and safety policy. This should clearly state who does what, when and how. Share the policy with staff and keep it updated.
🤔 Good to know
- If the employer hasn’t set dates for the leave year, it begins from the day the worker started working for the organisation.
- Unless their employment contract says otherwise, employees should ask for holiday at least twice the number of days before as the amount they want to take off.
- A worker can’t get paid in lieu of bank holidays, unless this is part of their unused holiday entitlement when they leave the job.
- Depending on what it says in the contract, workers can request unpaid leave if they’ve run out of holiday or don’t want to use their holiday entitlement.
Does an employee have to repay statutory maternity pay if they don’t return to work after maternity leave?
An employer cannot claw back Statutory Payments such as SMP, Statutory Adoption Pay or Shared Parental Pay. If the employee has qualified for statutory family pay such as SMP or Maternity Allowance, they’ll be entitled to be paid this even if they leave work before their maternity leave is due to commence. They won’t need to repay this, even if they don’t return to work after maternity leave.
🤔 Good to know
From 6 April, 2025, working parents are now entitled to additional time off while their babies are sick in hospital. This means that employees who have a baby in neonatal care might be eligible for up to 12 weeks of neonatal care pay. Pay cannot be for less than a full week.
Do I have to give staff a pay rise?
You’re not legally obliged to give a pay rise, annually or otherwise - unless any of the following apply to your employees:
- They receive the National Minimum Wage or Living Wage.
- They have an annual pay rise in their contract.
🤔 Good to know
If you've always given a pay rise each year for several years, you might be creating an implied term for pay rises based on custom and practice. Implied terms happen when employees have:
- A reasonable expectation of receiving a benefit.
- The benefit is well established over time.
- The benefit is clear and ambiguous.
Whether or not you have created an implied term will depend on how long you’ve done this for and what staff have been told.
Do I have to pay staff who can’t attend work due to jury service?
Even though it’s part of public duties, employers have no legal obligation to pay employees for jury duty - although many employers do. If not, employees can claim a ‘loss of earnings allowance’ from the court and employers can choose to top this up so staff don’t lose out on pay.
🤔 Good to know
- You must allow staff time off if they’re called up to serve on a jury.
- You can ask them to try to delay their jury service if their absence would seriously harm your business. They’ll need a letter from you explaining why.
- Jury service can only be delayed once in a 12-month period and availability must be stated on the jury summons.
Do employees have to attend Return to Work interviews?
Return to Work interviews aren’t a legal requirement so technically an employee can refuse to attend, however this could be in breach of the contract. It's important the employee understands that the meeting has been arranged to help them return to work in a smooth way and to assess whether anything can be put in place to support them better.
🤔 Good to know
- There is no right for the employee to be accompanied by a companion, but you can choose to allow this if you think it would make them more comfortable.
- The meeting should take place in a quiet, private room. It could be face to face, online, over the phone, at a neutral venue, or even the employee's home if appropriate.
- Keep a record of the interview - these notes should be kept confidential.
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Note: Our blog content is for general information only and does not constitute legal or other professional advice.
