Every country has different statutory rules on leave entitlement, setting (1) the amount of minimum annual leave, (2) carry over of unused leave and (3) leave pay outs upon completion of employment.
One of our US clients had a question about annual vacation leave for their employee assigned in the UK. They were interested in knowing how much leave could be rolled over in the UK, since the number of days of leave that UK employees receive is significantly greater than in the US.
We explained to them that it would depend on the circumstances, but that Shield GEO UK as the local employer of record would help them track unused leave and whether it was eligible to be carried over.
Here are the basic guidelines that we shared with them:
The annual statutory minimum leave in the UK is 28 days per year, but an employer can offer more in the employment contract. However, any extra leave days offered are not subject to the statutory carry over rules.
Of the statutory 28 days of annual leave, a maximum of 8 days can be carried over to the next year.
If the employee is unable to take their vacation leave because they are on a different type of leave (sick, maternity, parental, etc.) then they are entitled to carry over 20 of the statutory 28 days.
When UK employment ends, the unused balance of leave must be paid out to the employee, but only any leave accrued in the current “leave year” which begins on the day that work commenced. That amount of leave to be paid out would depend on the date of termination or resignation, and then prorated for the number of months worked in the leave year.
Shield GEO UK
Shield GEO UK is in a unique position to advise our UK clients on this type of issue, because assigned staff are directly employed by our own legal entity in the UK. Shield GEO UK is the actual employer of record, without the involvement of a third party, giving clients a dedicated and personalized employment resource in the country.
What this means is that our clients with employees on assignment in the UK will have access to our local expertise and support in that country, to ensure full compliance with all immigration, employment and payroll rules. In this way, our clients receive the benefit of our global experience along with direct account management by our staff.