Rules on carrying over annual leave to be relaxed

Rules on carrying over annual leave to be relaxed

Business Secretary Alok Sharma announced on 27th March that the rules on carrying over annual leave are to be relaxed to support businesses during the Coronavirus crisis.

Workers who have not taken all of their annual leave entitlement due to the Coronavirus will now be able to carry it over into the next 2 leave years.

The regulations will allow up to 4 weeks of unused leave to be carried over, easing the requirements on businesses to ensure that workers take their statutory amount of leave in any one year. This means staff can continue working in the national effort against the virus without losing out on annual leave entitlement. The changes also ensure employers have the flexibility to allow workers to carry over leave at a time when granting annual leave could leave them short-staffed.

What will this mean for my business?

Employers will need to consider the practicalities of the new regulation and how this will work in the organisation. Annual Leave policies may need to be reviewed and updated, and as this will constitute a variation in terms and conditions of employment contracts, staff will need to be formally advised of the change in the regulations.

Please contact us if you have any questions at all or worried about how this will affect your business. We’re here to help with your concerns and can advise on practical solutions.

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