Carrying over annual leave: the UK rules
Use it or lose it is the default - but four exceptions override it, and one of them is entirely the employer's own doing.
The default is use it or lose it - statutory holiday must be taken in the leave year it accrues. Four exceptions override that: sickness (carry up to 18 months), an employer who didn't give a real chance to take leave (carries indefinitely until they do), family leave, and the 1.6-week UK portion where there's a written agreement. Contractual days above the statutory 5.6 weeks carry however your policy says.
Can you carry over annual leave in the UK?
Not by default. The Working Time Regulations expect the 5.6 weeks to be taken within the leave year - the point of statutory leave is rest taken, not a balance banked. But the two halves of that 5.6 weeks behave differently, which is where most confusion starts:
| Layer | Amount | Carry-over default |
|---|---|---|
| EU-derived leave | 4 weeks | no carry-over except where an exception applies |
| UK additional leave | 1.6 weeks | may carry one leave year by written agreement |
| Contractual extra | whatever you offer | entirely your policy's choice |
When must an employer allow carry-over?
- Sickness. Someone prevented by illness from taking their leave can carry it forward for up to 18 months from the end of the leave year in which it accrued. Full detail in holiday accrual during sick leave.
- You didn't give them a fair chance. If an employer fails to give a reasonable opportunity to take leave - or fails to warn that untaken leave will be lost - the entitlement carries over rather than expiring. This is the exception employers most often trip on, and it's entirely within your control.
- Family leave. Someone on maternity, paternity, adoption, shared parental or similar leave keeps accruing holiday and carries it into the next year, because they plainly could not have taken it.
- Written agreement (1.6 weeks only). The UK additional portion can be carried one year forward if both sides agree in writing.
gov.uk sets out the statutory position on holiday and sick leave, and Acas covers carrying over annual leave.
What should employers actually do before year end?
- Warn early, in writing. Two or three months out, tell people what they have left and that it won't carry. That warning is precisely what protects you from exception 2 above.
- Make it takeable. Approving the requests that follow matters more than the reminder - a warning plus a blocked booking is worse than no warning at all.
- Watch the hoarders. Someone sitting on twelve days in October isn't being loyal, they're storing up a coverage problem for December and a rest deficit for themselves.
What happens to carried leave when someone leaves?
It's paid out. Accrued untaken statutory leave - including anything carried over after sickness - must be settled in the final pay; the leaver holiday calculator works the figure out. Carried leave can't simply be written off because it belonged to a previous year.
Should you allow carry-over at all?
Where you have the choice - the 1.6 weeks and contractual days - a small, capped allowance (say up to five days, used by 31 March) tends to work best: it accommodates the genuinely busy year without letting balances pile into something unmanageable. What it should never become is a way of avoiding rest. If people routinely can't take their leave, the carry-over policy isn't the problem; capacity is. See UK annual leave explained for the entitlement basics and the pro-rata calculator for part-year figures.
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Year end without the scramble
CoDash shows every balance all year, warns people before leave expires, and applies your carry-over rules automatically.