Can employees take holiday during notice period in the UK?

Employees can take holiday during their notice period in the UK, but the employer can still approve or refuse the request. Giving or receiving notice does not end or suspend the right to statutory holiday.

How holiday works during notice

Statutory annual leave continues to accrue throughout the notice period. The employee keeps the right to paid holiday even after giving notice. An employee who has accrued but not yet taken leave can still request it, and the employer can approve or refuse it under normal rules.

When employers can approve or refuse holiday during notice

The employer decides whether to approve or refuse, just as they do outside a notice period. An employer can refuse a holiday request if the business needs the employee to work, complete a handover, or meet a deadline. But the employer is commonly expected to give counter-notice at least as long as the leave requested.

Can employers require employees to take holiday during notice?

Employers can require an employee to take holiday during their notice period. The employer is mainly expected to give notice equal to at least twice the length of leave they are requiring plus one day. To require three days of leave, the employer typically needs to give at least seven days’ notice. 

Employers commonly do this to reduce how much untaken leave they typically need to pay out when the employee leaves.

Paying for holiday vs paying in lieu during notice

If an employee leaves with an untaken statutory holiday, the employer is typically required to pay for those days. Many employers prefer the employee to take the leave during notice rather than pay it out, because paying in lieu adds to the final payroll cost.

Common ways disputes take place

Disputes usually start when companies act in the following ways:

• Assuming that employees cannot take holiday once they give notice.

• Refusing all leave requests during notice without a documented business reason.

• Requiring holiday without giving the correct statutory notice period.

• Failing to keep clear records of which requests the employer approved, refused, or required.

TL;DR

• Employees can take holiday during their notice period in the UK, but the employer can still approve or refuse the request.

• Employers can also require employees to take holiday during notice, as long as they give at least twice the length of the leave plus one day as notice.

• If the employee leaves with untaken statutory holiday, the employer typically pays those days out.