Letter Regarding Carry Over of Annual Leave

This template letter can be used to confirm the employer’s position in respect of carryover of annual leave.  In relation to the additional 1.6 weeks’ statutory annual leave and any additional contractual leave entitlement, the Employer can have a policy in place which confirms whether carry over of this annual leave is permissible.

However, it should be noted that case law and new emergency legislation passed due to the coronavirus pandemic has determined that there are particular circumstances where an Employer should allow Employees/workers to carry forward unused statutory leave into another leave year, regardless of the Employer’s policy.

The circumstances in which an Employer should permit an Employee/worker to carry forward their statutory annual leave are:

• Where an Employee/worker was been unable to take the leave because they are absent from work on parental leave; or
• Where an Employee/ worker is on long term sickness absence and unable to take their leave. Should this apply, they can carry forward a maximum of 4 weeks’ leave but the leave must be taken within 18 months; or
• Under the Working Time (Coronavirus) Amendment Regulations 2020, in respect of the 4 week basic statutory annual leave entitlement, where it has not been reasonably practicable for the individual to take all of this in the leave year to which it relates due to circumstances related to the coronavirus pandemic.