Annual leave policy template

£9.90

Our Annual Leave Policy template simplifies time-off requests, ensures fair allocation, and fosters a well-rested workforce for better productivity.

Annual leave policy template
2026 Ready
Specifications
Access 12 months (includes updates)
Length 779 words · 3 pages
Jurisdiction England, Wales and Scotland
Based on UK employment law, ACAS guidance
Last review 01/08/2026
Next review 01/02/2027
Delivery Instant download
Formats .doc · .txt · email

Download .doc

Copy [to paste]

Email
Template

Annual leave policy

1   Overview

1.1   The purpose of this policy is to set out the rules and procedures for taking Annual Leave.

2   Scope

2.1   This policy is applicable to all employees of [Company].

3   General principles

3.1   Your paid annual leave entitlement is set out in your [Contract of Employment | Statement of Terms and Conditions of Employment].

3.2   [[insert number] days of your annual holiday entitlement must be taken, e.g. during the off-peak summer months/at Christmas, when the Company operates a shutdown. The Company will give you notice of the exact dates you are required to take as annual leave as early as possible after the start of the holiday year and in any event at least one month in advance of the shutdown.]

3.3   No more than two weeks paid annual leave may be taken at any one time without the prior written agreement of your line manager.

In your first and last year of employment, your holiday entitlement will be that proportion of your annual holiday entitlement equivalent to the proportion of the holiday year in question during which you have been employed. This will be calculated to the nearest half day and assuming that holiday entitlement accrues at an even rate from day to day. During your first year of service, unless otherwise agreed in writing by your line manager, you will not normally be permitted to take more annual leave than you have actually accrued at the time the holiday is

Premium content

This is a limited preview

To view in full, make a purchase
£9.90

Need the complete Absence and attendance process?

Explore the Absence and attendance policy templates

What is an annual leave policy?

Annual leave policy template

An annual leave policy is a set of guidelines and procedures that an employer has in place to manage employee annual leave entitlements. The policy outlines how employees should request and book time off, how much annual leave they are entitled to, and any rules or restrictions that apply to taking annual leave. It will provide a consistent and fair approach to managing annual leave entitlements across the organisation. 

The annual leave policy may include details on how leave is calculated, how it is accrued, and how it affects an employee's pay and benefits. It may also include rules around how much notice an employee needs to give when requesting annual leave, and how many employees can take leave at the same time.

By having a clear policy in place, employers can manage staffing levels, plan for any necessary cover or arrangements during an employee's absence, and ensure compliance with legal requirements.

HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

  • Employment Rights Act 1996: Provides the framework for annual leave entitlements, including minimum leave requirements.

  • Working Time Regulations 1998: Sets out rules on working hours, rest breaks, and annual leave entitlements.

  • Equality Act 2010: Ensures equal treatment and prohibits discrimination in annual leave allocation.

  • Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000: Ensures part-time workers receive pro-rata annual leave entitlements.

  • Maternity and Parental Leave Regulations: Outlines annual leave rights during maternity, paternity, and adoption leave.

  • Shared Parental Leave and Pay Regulations: Governs annual leave during shared parental leave arrangements.

  • Minimum Wage Regulations: Ensures employees receive proper pay during annual leave.

  • Employment Contracts and Collective Agreements: Contracts may specify additional terms related to annual leave entitlements.

  • Company Holiday Policy: Additional provisions specific to the company's annual leave practices.

  • Statutory Sick Pay (SSP) Regulations: Addresses the relationship between annual leave and sick leave.

You may also need these resources

Frequently Asked Questions

Can I use this in my small business?

Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.

Is it compliant with 2026 UK employment law?

Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.

Can I customise it for my organisation?

Yes, we highlight the areas of the document that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.

Do I get instant access to it?

Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.

What if I need more help, not just this template?

If you're looking for broader support, we also offer toolkits and library bundles that include the Annual leave policy template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.

Why should I use this Annual leave policy template, and not AI to generate it?

AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing absence and attendance processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

HRDocBox has been creating practical UK HR documents since 2009.

Executive recommendation

"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

"He is someone I trust; consistent, dependable, and committed to doing things properly."

RB
Ruth Brock Chief Executive Officer The Hygiene Bank
Get started today

HR confidence starts here

Whether you employ 5 people or 50, hrdocbox gives you the structure, documents and expertise needed to manage employees professionally and legally.

Download your FREE UK employment contract template

Professionally written and fully compliant with UK employment law

Download FREE contract
Free UK employment contract template