New Employer Duty to Record Holiday Leave
After the Easter break, you may find your thoughts drifting towards endless summer days where the faint hum of lawnmowers in the distance is interspersed with the joyful glee of children playing; the smell of the neighbour’s barbeque dances overhead, as the heat of the sun warms you in your entirety. The only improvement… a cold piña colada by a pool in Portugal rather than a fruit shoot with your feet in the paddling pool… or maybe that’s just us?
Whilst we have been dreaming about our summer holidays, a plethora of changes to employment legislation arising from the Employment Rights Act have become law. Much has hit the headlines about day-one rights to statutory sick pay and paternity leave. However, did you know as of 6th April, there is a new employer duty to record holiday leave? Additionally, employers will be expected to record holiday pay, any payments made in lieu of holiday leave and any holiday carried over from the previous year.
Whilst this feels like additional admin, being able to provide holiday records demonstrates compliance with the Working Time Regulations 1998. The regulations, which state full-time workers who work a 5-day week are entitled to a statutory minimum of 28 paid days of holiday (equivalent to 5.6 weeks), were designed to ensure the health and safety of workers after growing concerns around excessive working hours.
Benefits of Annual Leave
Taking annual leave provides benefits to the employee from burnout prevention to improved productivity. It also provides benefit to the business from enhanced reputation to supporting succession. We know this, you know this; however, how do you approach that one employee that just won’t take their annual leave?
What if Employees Are Not Booking Leave?
Whilst employers can force employees to take holidays, time off should be encouraged first. Encouragement can come in the form of an informal, one-to-one conversation. Sometimes, there may be a personal reason behind hesitance to use up holiday, or it could be they feel too busy at work. Having the conversation and determining whether there is a reason can provide reassurance and encouragement. Should that fail, regular reminders by line managers should inform employees of their leave entitlement, provide expectations that leave is taken and the risks of not using holiday should be explained.
Additionally, having annual leave clauses or policies in place can provide structure, consistency, and business protection. For example, they can signpost employees to booking procedures, deadlines for taking leave and limits on holiday carry-over.
Ultimately, employers have a new statutory duty to record holiday leave and pay. Failure to do so could be considered a criminal offence, possibly punishable by large fines. Now is the time to review holiday recording to ensure compliance, and annual leave accrual amongst employees to ensure a healthy work-life balance.
Need a one-off annual leave policy or need to provide line management training to managers? Contact CoLaw today for more information on how we can support your business on an adhoc or retained basis.