Key Takeaways:
- Most U.K. workers are entitled to at least 5.6 weeks of paid annual leave each year, although bank holidays can count toward that entitlement.
- Eligible employees may receive pay during sickness and several types of family-related leave, but the amount and eligibility rules vary by leave type.
- Several U.K. leave rules changed in April 2026, including Statutory Sick Pay becoming payable from the first full day of illness and paternity leave becoming a day-one employment right.
Hiring employees in the United Kingdom means more than simply budgeting for salaries and payroll taxes. Employers must provide several types of leave, including annual leave, sick leave, and leave for qualifying family circumstances.
Some types of leave are paid at the employee's normal rate, while others have specific payment rates and eligibility requirements. Recent changes under the Employment Rights Act 2025 have expanded several employee rights.
For companies hiring workers in the U.K., understanding these rules is important to ensure compliance with local laws.
Overview of Paid Leave Laws in the United Kingdom
U.K. leave entitlements come from several pieces of employment legislation, including the Working Time Regulations 1998 and Employment Rights Act 1996, along with newer legislation such as the Employment Rights Act 2025.
U.K. labor law sets the minimum leave amounts workers are entitled to and, where applicable, how much they must be paid while they're away from work.
Employers can offer more generous leave or pay through their employment contracts or company policies, and many U.K. employers do.
Being entitled to take leave doesn't always mean someone will be paid for the entire time they're away from work. For example, they may qualify for a period of job-protected leave even if pay covers only part of that absence.
Annual Leave
Almost all employees and workers in the U.K. are legally entitled to at least 5.6 weeks of paid annual leave each year; for someone working five days a week, that usually equals 28 days. Part-time workers receive the same 5.6-week entitlement based on their working schedule.
Employers can set their own leave year, such as January through December. When someone joins partway through the year, their entitlement is calculated proportionally. Workers continue to accrue annual leave while taking family leave or while absent due to sickness.
The calculation works a little differently for people who work irregular hours or only work for part of the year. They accrue holiday as they work, at a rate of 12.07% of the hours worked during each pay period.
How much someone receives in holiday pay depends on how they're normally paid. A worker with regular hours and fixed pay receives their usual wages while on leave. If their earnings vary, the calculation may also need to include things like regular overtime and commission.
Carryover and Payment in Lieu of Annual Leave
Workers are expected to use their annual leave each year, but unused days can carry over in some situations.
When an employer agrees, a worker with 28 days of leave can normally carry over up to eight days to the following leave year.
Workers who couldn't take leave because of sickness or family-related leave may be able to carry it over. For example, regular-hours workers who couldn't use their holiday because of sickness may carry over up to 20 days, which must typically be used within 18 months of the end of the leave year in which it accrued.
Employers may also have to allow carryover if they didn't provide the worker with a reasonable opportunity to take leave or failed to make clear that the worker could lose any unused leave.
Statutory annual leave can't be replaced with a cash payment while the person remains employed. When employment ends, however, the employer must pay the worker for any accrued leave they haven't taken.
Sick Leave and Statutory Sick Pay
U.K. employers don't provide a fixed number of paid sick days each year. Instead, qualifying employees can receive Statutory Sick Pay (SSP) when they can’t work because of illness.
The rules changed significantly on April 6, 2026. SSP is now available to eligible employees regardless of their earnings and is payable from the first full day of sickness absence. Previously, there was a three-day waiting period.
For the 2026-2027 tax year, employees receive whichever of these amounts is lower:
- 80% of their average weekly earnings
- GBP 123.25 per week
If someone is out sick for less than a full week, their SSP is adjusted based on the number of qualifying days they miss. Employers pay SSP through payroll along with regular wages.
Employers can offer contractual sick pay above the legally mandated minimum, and many do. When a company offers an enhanced sick pay scheme, the employment contract or company policy should explain how much employees receive and for how long.
Maternity Leave and Pay
Eligible employees can take up to 52 weeks of maternity leave, consisting of 26 weeks of ordinary maternity leave followed by 26 weeks of additional maternity leave. Maternity leave can begin up to 11 weeks before the expected week of childbirth.
Employees aren't required to take the entire 52 weeks, but they must take at least two weeks following childbirth, or four weeks if they work in a factory.
Statutory Maternity Pay (SMP) may be available for up to 39 weeks. For the 2026-2027 tax year, eligible employees receive:
- 90% of average weekly earnings for the first six weeks
- GBP 194.32 per week or 90% of average weekly earnings, whichever is lower, for the following 33 weeks
The remaining 13 weeks of the maximum maternity leave period are unpaid unless the employer provides additional maternity pay.
Paternity Leave and Pay
Eligible employees can take up to two weeks of paternity leave following the birth or adoption of a child.
Since April 6, 2026, paternity leave has been a day-one employment right, meaning employees no longer need a minimum period of service to qualify for the leave.
However, the eligibility rules for Statutory Paternity Pay (SPP) haven't changed. Employees need at least 26 weeks of continuous employment to qualify for the payment.
For the 2026-2027 tax year, SPP is GBP 194.32 per week or 90% of average weekly earnings, whichever is lower.
Adoption and Shared Parental Leave
Adoption leave can last up to 52 weeks. When a couple adopts jointly, only one person can take adoption leave, while the other may qualify for paternity leave.
Eligible employees can receive Statutory Adoption Pay (SAP) for up to 39 weeks. The first six weeks are paid at 90% of average weekly earnings. For the following 33 weeks, employees receive GBP 194.32 per week or 90% of average weekly earnings, whichever is lower.
Parents may also qualify for shared parental leave if maternity or adoption leave ends early. Depending on how much leave has already been used, parents can share up to 50 weeks of leave and 37 weeks of pay during the child's first year.
Shared parental leave can be particularly flexible because eligible parents can take time off at the same time, stagger their leave, or take it in separate blocks.
Other Family-Related Leave
U.K. employees may also qualify for several other types of family-related leave.
Neonatal Care Leave
Eligible employees in England, Scotland, and Wales can receive up to 12 weeks of additional leave when a baby requires qualifying neonatal care. The right to leave applies from the first day of employment, although separate service and earnings requirements apply to Statutory Neonatal Care Pay.
Parental Bereavement Leave
Eligible employees can take up to two weeks following the death or stillbirth of a child. The leave is available from the first day of employment, while statutory pay has separate eligibility requirements.
Unpaid Parental Leave
Employees may be entitled to up to 18 weeks of unpaid leave for each child, before the child's 18th birthday. Since April 6, 2026, this is also a day-one employment right.
Bank Holidays
Unlike annual leave, there's no automatic right to paid time off on bank holidays. Employers can count bank holidays toward the 5.6 weeks of annual leave, so a five-day-per-week employee could receive 20 days to choose themselves plus eight bank holidays.
Bank holidays vary across England, Wales, Scotland, and Northern Ireland. Employees who work on a bank holiday also aren't automatically entitled to higher pay; any enhanced rate depends on the employment contract or company policy.
Common Leave Challenges for International Employers
U.K. leave requirements become more complicated when employers need to manage several different systems at once.
Annual leave alone can require different calculations depending on someone's working hours and schedule. Employers also need to determine when unused leave can carry forward and which compensation elements must be included in holiday pay.
Family leave adds another layer because leave amounts and statutory pay don't always match. Maternity and adoption leave, for example, can last 52 weeks even though pay generally lasts for only 39.
Recent legal changes also mean employers need to keep policies and payroll processes current. Since April 2026, SSP has been payable from the first full day of sickness, while paternity and unpaid parental leave have become day-one rights. Employers must also now keep detailed annual leave and holiday pay records for at least six years.
For companies hiring across several countries, these requirements are just one set of leave rules they need to manage, with different requirements in every country where they employ people.
Hire Employees in the U.K. Without Managing Leave Compliance Yourself
Setting up a U.K. company is one way to hire locally, but it isn't the only one. Companies that don't already have, or want to establish, a local entity can use an Employer of Record (EOR) instead.
An EOR takes the complicated leave calculations off your plate, from tracking how much annual leave someone has accrued to calculating holiday and sick pay and applying the right rules when leave carries over.
EORs also handle other local employment requirements, including localized contracts, payroll, taxes, required contributions, and employee benefits.
With RemoFirst, companies can hire employees in the U.K. without establishing their own legal entity. RemoFirst acts as the legal employer and manages leave alongside the payroll, HR, and employment requirements that would otherwise fall to your internal team.
Book a demo to learn how you can hire in the U.K. without taking on local employment administration yourself.
Frequently Asked Questions
How many paid leave days are employees entitled to in the U.K.?
Almost all employees and workers are entitled to at least 5.6 weeks of paid annual leave each year. For someone who works five days a week, that equals 28 days. Part-time employees and workers receive the same 5.6-week entitlement based on their working schedule.
Are bank holidays included in annual leave in the U.K.?
They can be. Employers are allowed to count bank holidays toward the minimum 5.6 weeks of annual leave. Whether bank holidays are included or provided in addition to annual leave depends on the employment contract or company policy.
Do employers have to pay employees during sick leave in the U.K.?
Eligible employees can receive Statutory Sick Pay (SSP) when they're unable to work because of illness. As of April 6, 2026, SSP is payable from the first full day of sickness, and employees no longer need to meet a minimum earnings threshold. Employers can also offer more generous sick pay through their employment contracts or company policies.
Can unused annual leave be carried over in the U.K.?
Yes, in some circumstances. Employers may agree to let workers carry over unused leave, while carryover may be required when someone couldn't take their leave because of sickness or family-related leave. Different limits and deadlines apply depending on why the leave wasn't taken.
