Annual Leave: Employees Failing to Use their Entitlements
According to recent research by FRS Recruitment, over 40% of employees are not fully using their annual leave entitlements. The results show of those who did take leave, 46% used it for international travel, 15% for family matters, 9% for personal reasons, and 4% due to illness. Alarmingly, 19% of employees did not take at least five days off, or a full working week - while 15% left four days unused.
This survey highlights the need for employers to actively encourage their teams to make full use of their annual leave, which is crucial for both the mental health and well- being of employees.
A report by CIPD and the Kemmy Business School at the University of Limerick found that mental health issues contributed to 22% of worker absenteeism last year, up from 17% in 2022. This rising trend highlights not only the increasing strain on workplace resources but also underscores the critical need for organisations to invest in mental health support and effective absenteeism management strategies. Employers can help employees maximise their leave by promoting early holiday planning and assisting in coordinating time off that suits both the employee and the organisation.
It’s also essential that employers remember their legal obligation under the Organisation of Working Time Act 1997-2001 to ensure that all employees receive their full annual leave entitlements. Regular reminders to employees are important, as payment in lieu of holidays is not legal.
As we enter the final quarter of the year, now is a good time to remind staff to use their remaining leave or clarify if it can be carried over. Leave can only be carried over into the next year if both the employee and employer agree, and it must be used within six months of the new leave year. While companies may set their own leave year, businesses should be mindful that the legal leave year under the Organisation of Working Time Act runs from 1st April to 31st March.
For further information and guidance in relation to managing Annual Leave, contact our experienced team at MSS The HR People
