Free HR template for UK employers
Annual leave policy
An annual leave policy is there to make it clear what your team is entitled to and how to arrange time off in a fair and consistent manner. Having a policy that your team can refer to brings visibility to the system and helps avoid conflict.

How to use the template
Once you have downloaded the annual leave policy template please have a detailed read through and fill in any blanks.
It’s vital to check the template carefully and make any changes necessary to align it with your existing policies and procedures.
You must be certain that you’re complying with relevant employment law. If in doubt we suggest getting help from an employment law specialist.
What’s included?
This annual leave policy covers annual holiday entitlement, how to arrange it with the agreement of your manager, carry over to the following year and how it interacts with other absence types.
It also has a statement on what happens at the end of employment, this will need aligning to your employment contracts.

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The policy wording
Annual leave policy
There are a few options we can use if some holiday allowance is left when you come to leave our employment. We’ll decide which option is best at the time.
- Take the time off during your notice period.
- Pay you the equivalent value in your final salary.
- A mix of the two.
[Only use the following statement if your contracts of employment allow you to make deductions from pay.]
At the end of your employment, if you’ve taken more annual leave than has accrued, we’ll deduct the value of the excess from your final salary.
