A full-time working employee is entitled to a statutory minimum of 28 days holiday each year. Ordinarily the legislation splits this entitlement to statutory holiday into 20 days and 8 days, and there are some differences in the rules that apply:
Where it has not been reasonably practicable for the worker to take some or all of the 4 weeks’ holiday due to the effects of coronavirus, the untaken amount may be carried forward into the following 2 leave years. In considering whether it is reasonably practicable for an employee to take their leave employers must consider:
When employers agree with an employee to carry leave forward due to the coronavirus, they will continue to accrue holiday in the next leave year. As such, they will have 2 entitlements, the carried forward holiday and their entitlement for the new leave year.
When an employee with multiple entitlements takes holiday, it would generally be best practice to allow the employee to take holiday from the entitlement that expires first. In practice, this means they should take the carry forward holiday first as this lasts for 2 years. When taking carried forward holiday employers must still ensure that the worker receives their full regular entitlement in the leave year to which it relates, in addition to any carried holiday taken.
Carried forward holiday leave is still subject to the usual rules around payment in lieu. An employer must facilitate the worker taking their annual leave and not replace it with a financial payment. The only exception to this is if the employee leaves in which case the unused holiday should be paid at the normal.