Unused holiday does not always disappear automatically at the end of the leave year.
Whether leave can be carried forward depends on the worker's contract, whether the leave is statutory or additional contractual leave, and why the worker was unable to use it.
Employers have a legal responsibility to make sure workers can take the statutory holiday they are entitled to and should tell them if unused leave may be lost.
What is the normal rule for unused holiday?
Workers should normally take their statutory holiday during the relevant leave year.
If a relevant agreement allows carry-over, some statutory leave may be carried into the next year. Contractual leave above the statutory minimum can also have separate carry-over rules.
What does the employment contract say?
The contract, handbook or holiday policy should explain any normal carry-over allowance.
GOV.UK says that where a worker receives 28 days of annual leave, a relevant agreement can allow up to 8 days to be carried over. Additional contractual leave can have separate rules.
What if sickness prevented the worker taking leave?
Special statutory carry-over rules apply when sickness prevented the worker from using annual leave.
Acas states that regular-hours workers on long-term sick leave can carry over up to 4 weeks of statutory holiday and must use it within 18 months from the end of the leave year in which it accrued.
Irregular-hours and part-year workers have different statutory carry-over rules and can carry over up to 5.6 weeks in relevant sickness circumstances.
What if the employee was on statutory leave?
If someone could not use their holiday because they were on statutory leave, such as maternity leave, they must be allowed to carry the relevant leave forward.
What if the employer did not let them take it?
Workers can have statutory carry-over rights where the employer did not let them take their leave, did not encourage them to take it, or did not make clear that untaken holiday could be lost.
Acas states that regular workers can carry over up to 4 weeks in these circumstances.
Why employers should remind staff to use leave
Employers should not wait until the final week of the leave year to discover that several people have large unused balances.
- Remind employees of remaining entitlement during the year.
- Explain the carry-over policy clearly.
- Warn employees where unused leave may be lost.
- Give staff a reasonable opportunity to book their entitlement.
- Monitor high remaining balances before the leave year ends.
Keep carry-over recorded
From 6 April 2026, employers must keep records of annual leave and holiday pay, including holiday carried over from previous years. Records must be retained for at least 6 years.
A clear employee holiday tracker can make remaining balances and carry-over easier to follow across the leave year.
Official sources
- GOV.UK — Calculate leave entitlement and carry-over
- Acas — Carrying over holiday
- Acas — Irregular-hours and part-year carry-over
- Acas — Keeping holiday records
This guide provides general information for UK employers and teams. It is not legal advice. Employment circumstances can differ, so check current official guidance or obtain professional advice where needed.