Managing holiday leave requests might not sound like the most exciting part of running a business—but it can quickly become a headache if not handled well. Whether it’s overlapping summer breaks, last-minute Christmas leave, or confusion around bank holidays, poor planning can disrupt your operations and frustrate your team.
Here’s what every business owner needs to know about managing holiday leave the smart way—so you stay compliant and keep your workforce happy.
Know Your Legal Obligations First
Employees are legally entitled to 5.6 weeks of paid holiday per year, which equates to 28 days for full-time staff. This can include bank holidays, or be on top of them—it’s up to you, but it must be clearly outlined in your employment contracts.
Don’t forget:
• Part-time workers get a pro-rata amount.
• You can choose when leave can be taken (within reason), and require notice periods.
• Holiday pay must be based on actual earnings, including regular overtime and commission.
Pro Tip: Always refer to the Working Time Regulations 1998 to ensure you’re staying compliant.
Create a Clear and Fair Holiday Policy
A well-written holiday policy saves a ton of back-and-forth. It should cover:
• How to request leave (email, HR system, etc.)
• Notice periods (e.g., at least twice the length of leave being requested)
• Blackout dates (if any, like peak trading periods)
• Approval process (first come, manager discretion, rota fairness, etc.)
• Carry-over rules for unused leave
This isn’t about being rigid—it’s about setting fair expectations upfront.
Balance Business Needs with Flexibility
Yes, your business comes first—but denying leave too often (or without explanation) can damage morale and retention. Try to:
• Plan ahead, especially around school holidays or Christmas
• Stagger leave in teams where coverage is essential
• Offer alternatives if you have to say no (e.g., suggest different dates)
• Use a shared calendar or HR system to track requests transparently
Don’t forget: If you’re too strict, people may call in sick instead. Nobody wins.
Embrace Tech to Manage It Better
Manual tracking leads to missed details, confusion, and potential legal risks. Even small businesses can benefit from affordable HR software that lets you:
• View who’s off when
• Approve/decline requests easily
• Ensure everyone gets their full entitlement
• Spot patterns in time-off (like burnout risks)
It also means fewer emails in your inbox—which, let’s be honest, is reason enough.
Make It Part of Your Culture
Time off should be seen as a positive—not a disruption. Encourage staff to use their holiday, don’t glorify overworking, and remind your team (and yourself) that rest fuels productivity.
Happy, well-rested employees = better business results. It really is that simple.
Final Thoughts
Holiday leave might seem like just another admin task, but done right, it can improve your culture, reduce stress, and even increase performance. With the right policy, planning, and systems in place, you’ll not only stay legally compliant—you’ll also be the kind of employer people stick with.
If you need help reviewing your holiday policy or setting up a better system, let’s chat. HR doesn’t have to be hard—and we’re here to help.