Annual Leave - 20 Days Minimum (UK)
The UK's Working Time Regulations 1998 guarantee every worker a minimum of 5.6 weeks (28 days for full-time) of paid annual leave per year, with the first 20 days (4 weeks) deriving from EU law and the remaining 8 days (1.6 weeks) added by UK domestic legislation.
What Is the UK's 20-Day Annual Leave Minimum?
Key Takeaways
- ✓UK workers are entitled to 5.6 weeks of paid annual leave per year under the Working Time Regulations 1998. For a five-day-week worker, that's 28 days.
- ✓The entitlement has two layers: 4 weeks (20 days) from retained EU law and 1.6 weeks (8 days) added by UK domestic regulations.
- ✓Employers can count the 8 UK bank holidays within the 28-day total, meaning many workers effectively receive 20 days of leave plus 8 bank holidays.
- ✓Part-time workers receive leave on a pro-rata basis. Someone working 3 days per week gets 16.8 days (3 x 5.6 weeks).
- ✓The entitlement applies from day one of employment. There's no qualifying period.
The Working Time Regulations 1998 (WTR) set the floor for annual leave in the UK. Every worker, from day one of employment, is entitled to 5.6 weeks of paid leave per year. For someone working a standard five-day week, that translates to 28 days. The origin matters because it affects carryover rules. The first 4 weeks (20 days) come from the EU Working Time Directive, which the UK retained after Brexit. These 20 days have stronger protections: they can't be replaced by a payment in lieu (except on termination), and under certain conditions they must carry over if the worker couldn't take them. The extra 1.6 weeks (8 days) were added by the UK government in 2007. These "additional leave" days have slightly different rules: they can be subject to use-it-or-lose-it policies if the employment contract says so. Most employers don't distinguish between the two layers in practice. They offer 28 days (or more) and apply a single carryover policy. But the legal distinction becomes critical in disputes, particularly around holiday pay calculations and carryover during long-term sickness.
How the 28-Day Entitlement Works in Practice
The way employers structure the 28-day entitlement varies, and the details matter for compliance.
Bank holidays within the entitlement
There's a common misconception that UK workers are entitled to 28 days plus bank holidays. They're not. The law says 28 days total. Employers can include the 8 standard bank holidays within that figure, leaving 20 days of "discretionary" annual leave. However, most competitive employers offer bank holidays on top of a base annual leave allocation. A typical package is 25 days annual leave plus 8 bank holidays, totaling 33 days. The contract must clearly state whether bank holidays are included in or additional to the statutory entitlement.
Part-time and irregular-hours workers
Part-time employees receive pro-rated leave based on their working pattern. A worker on a three-day week gets 16.8 days (3 days x 5.6 weeks). For irregular-hours workers (zero-hours contracts, variable shifts), the calculation is more complex. The traditional method used 12.07% of hours worked to calculate holiday entitlement. However, the Supreme Court ruling in Harpur Trust v Brazel (2022) changed the calculation for permanent workers on variable hours, requiring a 52-week average reference period. The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 subsequently reformed holiday calculations for irregular-hours and part-year workers.
Leave year and accrual in year one
The leave year is either defined in the employment contract or, if not specified, defaults to the employee's start date anniversary. In the first year of employment, leave accrues at one-twelfth of the annual entitlement per month. An employee who starts on July 1 accrues 14 days of leave by December 31 if their leave year runs January to December. After the first year, the full 28-day entitlement is typically front-loaded at the start of each leave year.
Calculating Holiday Pay in the UK
Holiday pay has been one of the most litigated areas of UK employment law. Getting it right matters because underpayments are a common tribunal claim.
What counts as 'normal pay' for holiday pay
Following a series of landmark cases (Bear Scotland v Fulton, Lock v British Gas, Flowers v East of England Ambulance), UK law now requires that holiday pay for the 4-week EU-derived leave must reflect what the worker would normally earn. This includes regular overtime (guaranteed and non-guaranteed), results-based commission, and regular allowances. It doesn't include irregular, one-off overtime or expenses. The additional 1.6 weeks of UK domestic leave can be paid at basic pay only, though many employers simplify by paying full normal pay for all 28 days.
| Worker Type | Holiday Pay Calculation | Reference Period | Key Ruling/Legislation |
|---|---|---|---|
| Salaried (fixed hours) | Normal weekly pay | Current week's pay | Employment Rights Act 1996, s.221 |
| Variable pay (overtime, commission, etc.) | Average weekly pay over reference period | 52-week lookback (excluding unpaid weeks) | Bear Scotland v Fulton (2015); ERA s.224 |
| Irregular hours / part-year workers | 12.07% of pay in the pay period (from April 2024) | Current pay period | Employment Rights (Amendment) Regulations 2023 |
| Zero-hours contract workers | 12.07% accrual method or 52-week average | Depends on worker classification | Harpur Trust v Brazel (2022); 2023 Regulations |
Carryover Rules for UK Annual Leave
The carryover rules differ depending on which portion of the 28 days is being carried over and why the leave wasn't taken.
Standard carryover
By default, the 4-week EU-derived leave can't be carried over unless the worker was prevented from taking it. The 1.6-week domestic leave can be subject to use-it-or-lose-it policies if the contract specifies this. However, a relevant agreement (employment contract or collective agreement) can allow carryover of up to 1.6 weeks into the next leave year. Many employers allow 5 days of carryover as standard practice, requiring use within the first quarter of the new leave year.
Carryover due to sickness
Workers on long-term sick leave continue to accrue annual leave. If they couldn't take leave because of illness, the 4-week EU-derived leave must carry over. Following NHS Leeds v Larner (2012), this carryover right lasts for 18 months from the end of the leave year in which it accrued. After 18 months, the leave lapses. The 1.6-week domestic leave doesn't automatically carry over during sickness unless the contract allows it.
Carryover due to maternity or family leave
Employees on maternity, paternity, adoption, or shared parental leave continue to accrue all 5.6 weeks of annual leave. If they can't take it during the leave year because of family leave, the full untaken entitlement carries over. There's no 18-month cap for this type of carryover. Employers should agree with returning employees when the carried-over leave will be taken.
Enforcement and Penalties
Workers who are denied their statutory leave entitlement can bring claims to an Employment Tribunal.
Tribunal claims
Under regulation 30 of the WTR, a worker can complain to an Employment Tribunal if the employer has refused to allow them to exercise their right to annual leave or has failed to pay holiday pay. Claims must be brought within three months (less one day) of the date the leave should have been permitted or the pay should have been made. Successful claims result in a declaration and compensation equal to the amount the worker should have been paid.
Unlawful detriment and dismissal
It's automatically unfair to dismiss an employee for asserting their right to annual leave (ERA 1996, s.104). Workers also can't suffer detriment (reduced hours, missed promotions, disciplinary action) for requesting or taking statutory leave. Auto-unfair dismissal claims have no qualifying service period and no compensation cap, making them particularly risky for employers.
What UK Employers Actually Offer
Most UK employers go well beyond the statutory minimum. Here's how the market breaks down.
Practical Tips for UK HR Teams
Managing annual leave compliance in the UK requires attention to contract drafting, payroll accuracy, and record-keeping.
- State explicitly in the employment contract whether bank holidays are included in or additional to the 28-day entitlement. Ambiguity here is the most common source of holiday disputes.
- Audit holiday pay calculations annually. After Bear Scotland and subsequent cases, many employers discovered they'd been underpaying holiday for years. The risk of backdated claims makes proactive audits worthwhile.
- Review your approach for irregular-hours workers after the 2023 Regulations. The rules changed significantly, and policies written before April 2024 may now be non-compliant.
- Track the two layers (4-week EU and 1.6-week domestic) separately in your HR system, even if you apply a single policy. If a carryover dispute arises, you'll need to show which portion was affected.
- Don't assume rolled-up holiday pay is lawful. While the 2023 Regulations now explicitly permit it for irregular-hours and part-year workers, it remains problematic for standard workers. Take legal advice before adopting it.
Frequently Asked Questions
Can an employer force employees to take annual leave?
Do UK bank holidays count toward the 28-day entitlement?
What happens to unused leave when an employee resigns?
Are workers on zero-hours contracts entitled to annual leave?
Can annual leave be paid out instead of taken (bought out)?
Written by Adithyan RK