Guide 8 min read
1. Introduction
During employment, staff may require time away from work for a variety of reasons. Some of these are statutory entitlements (set out in law) and others may be granted at the discretion of the business. Below outlines some of the types of leave available, payment entitlements, and the responsibilities of both employer and employee.
2. Statutory leave entitlements
Employees may be entitled to take time off for the following reasons:
- Maternity Leave
- Adoption Leave
- Neonatal Care Leave
- Paternity Leave
- Shared Parental Leave
- Parental Bereavement Leave
- Ordinary Parental Leave
- Carer’s Leave
- Time off for Dependants
- Jury Service
- Trade Union Duties
Some types of leave are paid (with statutory pay provided by the employer, which may be reclaimable), while others are unpaid.
Further information on reclaiming statutory payments can be found at Recover statutory payments
3. Sick leave and statutory sick pay (SSP)
Employees who are unable to attend work due to illness or injury may be entitled to Statutory Sick Pay (SSP) if they meet the eligibility criteria.
- SSP is payable from the 4th consecutive day of sickness absence.
- Employees must inform their manager as soon as possible if they are unable to attend work.
- For absences longer than 7 calendar days, employees must provide a Fit Note (medical certificate).
- Employers cannot currently recover SSP costs; these are borne entirely by the business.
For more information visit Statutory Sick Pay (SSP)
Important Note: The Employment Rights Bill is introducing changes to SSP rules making this a day one right, these planned changes are scheduled to be implemented April 2026, make sure you keep yourself updated by following the above link or contact your local Business Gateway Office for support.
4. Holiday and holiday pay
All employees and workers are entitled to 5.6 weeks’ statutory annual leave per year, which may include bank holidays.
This entitlement applies to:
- Employees
- Workers
- Agency workers
- Workers with irregular hours
- Part-year workers
Examples:
- Full-time worker (5 days per week): 28 days leave (5.6 × 5 days).
- Part-time worker (3 days per week): 16.8 days leave, rounded up to 17 days.
- Irregular or part-year workers: leave accrues based on hours worked.
Important:
- Holiday pay must be paid when leave is taken, except on termination of employment.
- Rolled-up holiday pay may be used for irregular hours and part-year workers this only applies if their leave year began on or before 31 March 2024.
5. Employer and Employee Responsibilities
- Employer: Must ensure all statutory entitlements are provided, payments made, and claims for recoverable costs submitted where applicable.
- Employee: Must request leave in line with company procedures and provide required notice or evidence (e.g., Fit Note, jury summons, MAT B1).
For more information on Holiday Entitlement and Holiday Pay please visit:
· https://www.gov.uk/holiday-entitlement-rights
https://www.gov.uk/holiday-entitlement-rights/holiday-pay-the-basics
6. Importance of policy and procedure
Clear policies and procedures allow:
- Employees to understand their rights and obligations.
- Managers to apply rules fairly and consistently.
- The business to meet legal obligations while managing financial and operational impact.