Statutory leave comes in two parts
The 5.6 weeks of statutory holiday under the Working Time Regulations 1998 is actually made of two slices, and they carry over differently:
- 4 weeks — derived from EU working-time law. This is the “use it or lose it” portion and generally cannot be carried over.
- 1.6 weeks — the extra UK top-up. This can be carried into the next leave year, but only by written agreement between employer and worker.
Any contractual holiday your employer gives on top of the 5.6 weeks can be carried over however the contract says.
| Slice | Origin | Carry-over |
|---|---|---|
| 4 weeks | EU working-time law | Not normally (exceptions below) |
| 1.6 weeks | UK addition | Yes, by written agreement |
| Contractual extra | Employer’s own terms | As the contract states |
The sickness exception
If a worker could not take their 4 weeks because of long-term sickness, the law lets them carry it over. In practice this untaken leave can usually be carried for up to 18 months from the end of the leave year in which it built up. This protects people who were too unwell to take the holiday they had earned.
Maternity and other family leave
Annual leave keeps accruing during maternity, paternity, adoption and shared parental leave. Because you generally cannot take annual leave at the same time as statutory family leave, workers are allowed to carry it over into the next leave year so it is not lost.
Employer discretion
The rules above are the statutory minimum. An employer can always be more generous — allowing more carry-over, setting a cap (for example “up to 5 days”), offering a buy-back, or requiring carried leave to be used by a certain date. Whatever you decide, write it into the leave policy so it is applied consistently and staff know the deadline.
Carry-over rules interact with other time off. If your team also runs time off in lieu (TOIL), keep TOIL expiry and holiday carry-over as separate, clearly documented rules so balances do not get muddled.
Keep an eye on year-end balances
The practical challenge is spotting who still has leave to use before the year ends. Rotaleave’s balance reports show remaining and carried-over allowances at a glance, so you can nudge people before deadlines and apply your carry-over cap automatically.
Check the official sources
This is general guidance, not legal advice. Carry-over rules have changed in recent years, so check the current position on gov.uk and Acas, which are the authoritative UK sources.