Millions Of UK Employees Miss Out On Holiday Entitlement And It’s Costing Employers A Fortune Research by the TUC has found that nearly two million employees have missed out on their legal holiday entitlement. Approximately one in 14 employees have lost some of their annual leave entitlement due to simply not having the capacity to take it.
Unrealistic workloads, employers denying holiday requests and even failing to keep up to date with the law were the main reasons employess have missed out on annual leave, says the
TUC. Women were more affected than men, whilst workers in the education, health/ social care and retail industry were most likely to lose out, according to the report.
Northern Ireland has the highest proportion of its workers missing out on holiday pay (9.5 percent), followed by the east of England (7.7 percent) and London (7.5 percent). The north west of England has the lowest proportion of workers getting short changed at 5.6 percent.
As an employer, you may be thinking that your business is better off for having dedicated employees who aren’t using their holiday entitlement, after all, your business should be more productive. However the number of employees opening unpaid holiday claims has more than double since tribunal fees were abolished in 2017, following a legal victory by UNISON. Not surprisingly for employers, the majority of holiday pay cases are found to be in the claimant’s (employee’s) favour, with values ranging from £18.94 to £11,000. Additionally, it’s estimated that UK workers put in £32billion worth of unpaid over time in 2018.
This showcases the importance of allowing your employees the annual leave they are entitled to. Not only is it a legal entitlement, it is also beneficial for the mental health of your employees as it will stop them ‘burning out’ further down the road. It also will save your business time and money in the long run.
Your employees are entitled to 28 days holiday for a typical five-day week. You can work out how many days off an employee is entitled to, by multiplying the number of days they work each week by 5.6. Employers are allowed to include the eight UK bank holidays within your statutory holiday entitlement.
In other words, a full-time worker in the UK has the right to 28 days’ holiday. Employers can insist that employees take some of your paid holiday on bank holidays. How bank holidays are treated will depend on what is said in your contract of employment and in any policy.
So how do you know how much holiday entitlement to give or how to fairly distribute it throughout the year? You don’t want to cause arguments between your staff, and denying multiple requests isn’t going to do any favour for morale. That’s why our HR team are on hand. We’re here to help you every step of the way. Get in touch on 0845 050 4060