Holiday Carry-Over After Maternity Leave: What Employers Need to Know

Holiday Carry-Over After Maternity Leave: What Employers Need to Know

When an employee returns from maternity leave with untaken holiday, employers need to manage both the legal position and business cover. The key point is that holiday continues to accrue during maternity leave and, where the employee could not take it because they were on statutory leave, it must usually be carried over.

What employers need to know

Employees continue to accrue statutory holiday while on maternity leave. Employers should also check the contract or handbook to confirm how any enhanced contractual holiday is dealt with.

If maternity leave prevents an employee from taking statutory holiday in the normal leave year, employers should allow it to be carried over. A standard “use it or lose it” rule should not be applied where statutory leave has stopped the employee from taking holiday.

Practical steps for employers

• Calculate the balance. Check holiday accrued before, during and after maternity leave.
• Check your policy. Confirm whether enhanced holiday has separate carry-over rules.
• Plan early. Discuss whether holiday will be taken before maternity leave, added to the end, or spread after return.
• Manage timing fairly. Employers can usually agree when leave is taken, but the employee must still be able to take it.
• Keep records. Record accrual, carry-over and agreed dates.

Managing the return

Where maternity leave spans a holiday year, the returning employee may have a significant amount of leave to take. Employers should approach this as a planning issue: agree a practical schedule that supports business continuity while ensuring the employee can take their accrued entitlement.

Employer takeaway

Maternity leave does not pause holiday entitlement. Employers should calculate the accrued leave, allow appropriate carry-over and agree a workable plan for taking it.