Annual Leave

April 23, 2020

EMPLOYER UPDATE 


Annual Leave


We can be sure that, at this time, no one is probably planning their holiday arrangements, due to the current uncertainties and lockdown. However, it is possible that when we are allowed to return to work, we will be heading into the holiday season and employees may at that stage, have accrued a lot of time off if they have not yet taken any leave. At the same time, we hope our employees will be needed to address the uplift in work and getting back on the road again. Hence, the importance of planning how to avoid a holiday crisis.


Statutory Leave Year 

Firstly, the statutory holiday year is April to March, though most companies use January to December as their leave year. This is important, because if a claim is made under the Organisation of Working Time Act 1997, this is the only leave year that a claim can be based on if the claim concerns annual leave, regardless of what the holiday year in the contract states.


Do Employees Accrue Annual Leave during Lay-Off?

Annual leave accrues under the Organisation of Working Time Act based on the number of hours worked by employees, subject to a maximum of four working weeks. Where employees have been placed on lay-off, these employees do not accrue annual leave during the specific weeks that they have been laid off, however it is important to note that if they have worked 1,365 hours in the leave year, then they will still be entitled to their full four weeks annual leave. The question of whether annual leave accrues whilst employees are on the Wage Subsidy Scheme, which is basically de facto Lay-Off, has not been clearly defined by the Government legislation or adjudication as of yet. If an employer takes the position that it does not accrue, they should be mindful that it is possible that this could be deemed unlawful. Accrual of contractual leave in excess of statutory leave whilst in receipt of the WSS payment will accrue unless the contract states otherwise.


Employer Responsibilities

Under this Act the employer is responsible for ensuring employees take their leave. In exercising that responsibility, the employer must take into account the need for the employee to reconcile work needs, family responsibilities and the opportunities for rest and relaxation, even if the employer wishes to nominate when holidays will be taken, which can be done where at least a months’ notice has been given.


At the moment some employers have already organised employees to take leave during this COVID 19 period, to use up entitlements, but the overall number is probably quite small. Yet, if we consider that the normal leave entitlement for full time employees is 4 working weeks plus Public Holidays, and the fact that we only have 8 months left to take them in, (if January to December is your leave year), if and when things pick up we may need all hands to the wheel and holidays could be a nightmare.


So, what can an employer do?

Employers are entitled to nominate when holidays can be taken. To do this the employer is expected to consult the employee or their trade union (if any) at least a month before the date nominated for leave to be taken. This means that the employer can nominate holidays to commence in a months’ time which will allow the employer to organise the workforce, especially if there is going to be a phased return to work. If it is the case that an employer wishes to start using the leave earlier then employees could be asked to come forward, request employees to indicate holiday dates for the rest of the year and advise that if they do not do this the company may have to nominate when they take them or they could be organised by agreement..

What if all annual leave cannot be used up?


If it is the case an employee is unable to use up all the annual leave within the January to December leave year, then it should be remembered that there are still three months left in the Statutory leave year before you are in breach of the Act. In addition to this leave can be carried over to the next leave year provided there is agreement and the leave is taken within the first six months of the new leave year. This gives an employer up to the end of September 2021 to use up any carried over leave and hopefully to also use up current leave as well at that stage.


Why not just pay the outstanding leave?

Employers cannot pay employees for outstanding leave unless the employee is ending their employment with the company, so this is not an option for current employees.


So, what do you do?

  • Identify how much leave is currently due to all your employees.
  • Identify how much leave the company will need for periods where the company shuts down e.g. Summer shut down, Christmas
  • Work out how to spread the balance over the remainder of the leave year
  • Request employees to submit their leave requests for 2020 by a specified date so that the company can organise them in a manner fair to all or reflect any established booking practice that may apply in the workplace, around the needs of the business.
  • If necessary, nominate when holidays may be taken by giving the appropriate one months’ notice
  • If all leave cannot be used up, agree to carry over leave into the next leave year.


Can employees take leave if on the Subsidy Scheme?

Yes. The employee is still at work so this can be done and as the scheme runs to the 25th June, it is likely that employees will be taking leave during this time.


Can employees take leave whilst on the Pandemic Unemployment Payment?

No. An employee cannot receive payment from their employer during this time.

 

This update is provided by the MSS HR Support Service.

 

Further details on the update or about our services may be obtained from:
John Barry/Tara Daly/ Hugh Hegarty at tel: 01 8870690

 

Email: info@mssirl.ie         Website: www.mssirl.ie

International Hiring: A Growing Solution for Irish Employers

By Tara Daly • May 19, 2026
Irish employers are increasingly turning to international hiring as a solution to ongoing skills shortages. This trend is particularly evident in sectors where local talent is limited and demand continues to grow. Why employers are looking overseas Common drivers include: • Difficulty filling specialist roles locally • Business expansion and growth • Increased competition for talent International hiring can provide access to a wider talent pool and support long-term workforce planning. The challenge While the opportunity is clear, the employment permit process can be complex. Employers often underestimate: • The level of detail required in applications • The importance of aligning with eligibility criteria • The potential for delays or refusals Where the process is not managed properly, the impact can be significant. Roles remain open for longer, business plans are affected, and onboarding timelines move further out than expected. Getting it right A structured and informed approach is essential. This includes: • Understanding the appropriate permit type • Ensuring the role meets eligibility requirements • Preparing a clear and robust application Where employers take the time to position the role properly and support the application with strong documentation, the process is far more likely to run smoothly. Key takeaway for employers International hiring can be a highly effective solution, but only where the permit process is managed correctly. Approached properly, it enables businesses to secure the talent they need to grow and succeed with greater certainty and less disruption. If you would like advice or support with the employment permit process, our team would be happy to assist. info@mssthehrpeople.ie | 01 887 0690

Employment Permits in Ireland: Why a “Submit and See” Approach Can Cost You

By Tara Daly • May 13, 2026
A common approach we encounter is employers submitting an employment permit application and waiting to see what happens. While understandable, this approach carries significant risk. Why this approach falls short Employment permit applications are not a simple box-ticking exercise. Each application is assessed based on: • Eligibility • Justification • Alignment with current criteria If any of these elements are unclear or insufficient, the application may be delayed or refused. The impact of getting it wrong Where an application is unsuccessful: • Timelines are extended • Recruitment plans are disrupted • Candidates may withdraw In a competitive hiring market, these delays can have a real impact on the business. A role can remain unfilled for longer than expected, existing teams can come under pressure, and a strong candidate may choose another opportunity. A better approach Employers should approach permit applications as a structured process, focusing on: • Clear alignment with eligibility criteria • Strong and accurate role definition • Comprehensive supporting rationale It is far more effective to identify and address risk areas before submission than to deal with the consequences of delay or refusal later. Key takeaway for employers Submitting an application without fully assessing the risks can lead to avoidable delays. A well-prepared application significantly improves the likelihood of a successful outcome and gives the employer greater confidence throughout the process. If you’re planning an overseas hire or facing delays, we’re happy to talk it through. info@mssthehrpeople.ie | 01 887 0690
WRC awards €15,000 after employee kept on “specific purpose” contract for 10 years

WRC awards €15,000 after employee kept on “specific purpose” contract for 10 years

By Amy Vickers • May 7, 2026
A recent WRC decision is a very important reminder to employers that long running “specific purpose” and fixed term arrangements can create significant risk
Workplace Bullying, Harassment and Sexual Harassment Claims Are Rising

Workplace Bullying, Harassment and Sexual Harassment Claims Are Rising

By Amy Vickers • May 7, 2026
Increase in complaints relating to bullying, harassment, and sexual harassment and the complexity and escalation of these cases.
Supporting Employees Through Pregnancy Loss

Supporting Employees Through Pregnancy Loss

By Amy Vickers • May 7, 2026
Pregnancy loss is a deeply personal experience. For employers, these situations can be equally challenging because of the uncertainty around it.
Psychological Illness Now the Leading Cause of Income Protection Claims in Ireland

Psychological Illness Now the Leading Cause of Income Protection Claims in Ireland

By Amy Vickers • May 7, 2026
significant shift in workplace health trends, with psychological illness now the most common cause of income protection claims in Ireland.

Why Employment Permits Get Delayed in Ireland and How to Avoid It

By Tara Daly • May 5, 2026
Delays in employment permit applications are a frequent frustration for employers. Many assume the issue lies with processing times or administrative backlogs. In reality, the most common cause of delay is something else entirely. The real issue: misalignment The number one reason applications are delayed is misalignment with the eligibility criteria. This can include: • Roles that are not clearly defined • Job descriptions that do not match the required skill level • Weak or generic supporting information On the surface, an application may appear complete. However, if it does not clearly demonstrate eligibility, it is likely to encounter delays or queries. Why this happens Employers often approach the process as an administrative task. In practice, each application is assessed on its merits, and clarity is critical. How to avoid delays To reduce the risk of delay: • Ensure the role clearly meets eligibility requirements • Align job descriptions with the actual duties and level of the role • Provide strong, specific supporting information It is also important to review the application from the perspective of the decision-maker. If the application leaves room for doubt, it is far more likely to be delayed while clarification is sought. Key takeaway for employers Employment permits are not delayed because of missing forms. They are delayed because the application does not clearly meet the criteria. Understanding how your application will be assessed is essential, particularly where timelines are already under pressure and the business needs certainty around a key hire. If you’re planning an overseas hire or facing delays, we’re happy to talk it through. info@mssthehrpeople.ie | 01 887 0690

Avoiding Refusal: Strengthening a High-Risk Employment Permit Application

By Tara Daly • April 28, 2026
One of the most challenging scenarios for employers is progressing an employment permit application that appears complete, but carries a high risk of refusal. In many cases, this risk only becomes apparent once a decision has been issued. We were recently engaged by a client in the healthcare support sector who had already begun preparing an application for a General Employment Permit for a specialist role. The situation The employer had: • Identified a suitable overseas candidate • Undertaken initial steps in the application process • Prepared the necessary documentation However, they sought a review before submission due to uncertainty around eligibility. What we identified On review, it became clear that the application, as drafted, was unlikely to succeed. The risks were not immediately obvious but included: • A job description that did not clearly demonstrate the level of skill required • Duties that overlapped with roles not typically eligible for a permit • Insufficient detail in the business case supporting the hire From experience, these types of issues frequently result in refusals, particularly where roles sit close to the margins of eligibility. Why this matters A refusal does not just mean a rejected application. It often results in: • Restarting the process from the beginning • Additional recruitment delays • Potential loss of the candidate In sectors already experiencing staffing pressures, this can have a significant operational impact. Our approach We worked with the employer to: • Refine and clarify the role profile to accurately reflect its responsibilities and requirements • Distinguish the role from non-eligible positions • Strengthen the supporting documentation to clearly demonstrate eligibility and business need. This required a detailed understanding of how similar roles are assessed in practice. The outcome Following revision, the application was submitted and approved on first submission. The employer avoided: • A likely refusal • Delays in onboarding • Disruption to service delivery Key takeaway for employers Applications are not assessed solely on whether documentation is present. They are assessed on whether the role, as presented, clearly meets the criteria. Where roles are borderline or nuanced, early intervention can significantly reduce the risk of refusal. If you’re planning an overseas hire or facing delays, we’re happy to talk it through. info@mssthehrpeople.ie | 01 887 0690
Securing a Critical Skills Employment Permit: When Timelines Start to Slip

Securing a Critical Skills Employment Permit: When Timelines Start to Slip

By Tara Daly • April 23, 2026
Irish employers are increasingly relying on international hiring to fill key roles, particularly in sectors experiencing acute skills shortages.

WRC Awards €142,984 in Unfair Dismissal Case Following Senior Executive Redundancy

April 9, 2026
WRC Reference: ADJ-00057077 / 11 th March 2026 A recent decision of the Workplace Relations Commission (WRC) has highlighted the importance of fair procedures, genuine consultation, and meaningful engagement in redundancy processes, particularly where senior executives are involved. Background The Complainant was employed by the Respondent for over 24 years, beginning in 2000. Over the course of her career, she progressed to the senior role of Managing Director, EMEA GLT, with a base salary of €275,000, alongside bonus and equity participation. In mid-2024, the Complainant’s role was significantly altered following an internal restructuring. She alleged that this amounted to an effective demotion, with key responsibilities removed without consultation or warning. Shortly afterwards, the situation escalated. The Complainant was placed on sick leave and raised a formal grievance regarding the changes to her role. That grievance was not upheld, and the appeal outcome confirmed the employer’s position. In October 2024, the Complainant was informed that her role was at risk of redundancy. A consultation process followed, during which she was placed on garden leave. Despite raising concerns and requesting further clarity around her role and terms, her employment was ultimately terminated by reason of redundancy in November 2024. The Complainant subsequently brought a claim for unfair dismissal. WRC Findings The Respondent conceded at the hearing that the dismissal was unfair. The Adjudication Officer noted that the Complainant had been employed in a very senior position for over two decades and had progressed through multiple promotions, ultimately holding a Managing Director role. It was accepted that significant changes had been made to her responsibilities prior to the redundancy process, which formed part of the broader context leading to the breakdown in the employment relationship. While a redundancy process was carried out, the key issue before the WRC was the fairness of the overall dismissal. Given the Respondent’s concession, the WRC found that the Complainant had been unfairly dismissed. Decision The WRC upheld the complaint of unfair dismissal and awarded the Complainant €142,984 in compensation A separate complaint relating to notice was rejected on the basis that statutory notice had already been included in the termination payment. Key Takeaways for Employers This decision highlights several important points for employers, particularly in the context of senior-level restructurings: Role changes must be handled carefully, particularly where they may amount to demotion in practice. Consultation must be genuine and meaningful, even at executive level. Grievances should be addressed thoroughly and fairly before moving to redundancy. Redundancy processes must be clearly separated from performance or role disputes. Senior employees are entitled to the same procedural protections as all employees. Even where restructuring is commercially justified, employers must ensure that process and communication are properly managed to avoid unfair dismissal findings. Conclusion This case serves as a reminder that long service and seniority do not reduce the employer’s obligations under employment law. Where role changes, grievances, and redundancy processes overlap, employers must take particular care to ensure fairness at every stage. Failure to do so can result in significant compensation awards, as demonstrated by the €142,984 award made in this case. Tara Daly