All employees, whether they are full-time, part-time, temporary or casual, earn annual leave entitlements from the time they start work. Most employees are entitled to four weeks paid annual leave per leave year.
Depending on time worked, employees' holiday entitlements should be calculated by one of the following methods:
- 4 working weeks in a leave year in which the employee works at least 1,365 hours (unless it is a leave year in which he or she changes employment)
- 1/3 of a working week per calendar month that the employee works at least 117 hours
- 8% of the hours an employee works in a leave year (but subject to a maximum of 4 working weeks).
If more than one of the preceding methods at (1), (2) or (3) above is applicable, the employee shall be entitled to whichever method provides the greater entitlement. However, the maximum statutory annual leave entitlement of an employee in a leave year is four of his/her normal working weeks.
An employer may, at their discretion, provide an additional annual leave entitlement which will be stated in the employee's written terms of employment.
The employer determines the timing of an employee’s annual leave, taking into consideration work and personal requirements and should consult him/her or the relevant union in advance. Pay for the leave must be given in advance and calculated at the employee’s normal weekly rate.
Agency Employees
The party who pays the employee’s wages (employment agency or client company) is the employer for the purposes of the Organisation of Working Time Act 1997 and is responsible for providing the annual leave entitlement.
Accrual of Annual Leave while on other types of leave
An employee will continue to accrue annual leave while on the following types of leave:
- Annual leave
- Certified Sick Leave
- Maternity Leave
- Paternity Leave
- Parent's Leave
- Parental Leave
- Adoptive Leave
- Force Majeure Leave
- The first 13 weeks of Carer’s leave
Accrual of Annual Leave while on Certified Sick Leave:
From 1st August 2015, workers can accrue annual leave when they are on long term sick leave. This means -
- Statutory annual leave entitlement accrues during a period of certified sick leave.
- An annual leave carryover period of 15 months after a leave year will apply to those employees who could not, due to illness, take annual leave during the relevant leave year or during the normal carryover period of 6 months.
- On termination of employment, payment in lieu of untaken accrued annual leave will apply to leave which was untaken as a result of illness in circumstances where the employee leaves the employment within a period of 15 months following the end of the leave year during which the statutory leave entitlement accrued.
These changes were brought about under Section 86(1) of the Workplace Relations Act 2015.
Annual Leave and Leaving Employment
Under the Organisation of Working Time 1997, an employer is not permitted to pay an allowance in lieu of the minimum statutory holiday entitlements of an employee, unless the employment relationship is terminated. If the employee is leaving employment, they are entitled to receive payment for any outstanding annual leave.
Resolving Issues
We would encourage employers and employees to seek to resolve any issue at the level of the employment.
Where issues cannot be resolved locally, the employee may make a complaint under the relevant legislation to the Workplace Relations Commission. Where the employer and employee are agreeable, the Commission may seek to resolve the matter by means of mediation. Otherwise, the complaint will be investigated by an Adjudication Officer. Every case is fact specific.
If you wish to seek additional information on your situation you may speak with an Information Officer of the Workplace Relations Commission at 0818 80 80 90 or 059 917 8990, Monday to Friday 9:30am to 5pm. The service is available for both employers and employees.
A copy of the relevant Acts may be viewed or downloaded here -
Other relevant legislation includes -