A Complete HR Guide to Managing Bank Holidays and Annual Leave in the UK

Managing staff holidays might sound simple on paper, but for HR teams across the UK it is one of the trickiest tasks of the year. Between statutory entitlements, bank holiday variations, part-time working arrangements and the seasonal rush for time off, HR managers often find themselves navigating a minefield of rules and employee expectations.

This guide breaks down everything you need to know about bank holidays and annual leave in the UK, with practical tips to keep your workplace compliant, fair, and employee-friendly.

Statutory Annual Leave Entitlement in the UK

Under the Working Time Regulations 1998, employees are legally entitled to a minimum of:

• 5.6 weeks’ paid holiday per year – which equates to 28 days for someone working a five-day week.
  
  
• This can include the UK’s bank holidays, or employers may choose to offer bank holidays on top of the 28 days.
  
  

It’s important to note:

• There is no automatic legal right to have bank holidays off.
  
  
• Employers can decide whether bank holidays form part of the statutory entitlement.
  
  
• Part-time staff must receive the same entitlement pro rata.
  
  

Many organisations choose to offer additional leave beyond the legal minimum as part of their benefits package — a move that can help with staff retention and morale.

Bank Holidays and Different Working Patterns

Not all employees work a standard Monday to Friday schedule, so HR policies need to reflect fairness across the board.

• Part-time employees: Entitlement must be adjusted pro rata. For example, someone working three days a week would be entitled to 16.8 days of paid holiday (5.6 × 3).
  
  
• Shift workers and weekend staff: Because bank holidays often fall on Mondays or Fridays, relying solely on fixed dates can be unfair. Best practice is to give part-time or shift staff a leave allowance in hours rather than fixed days, so everyone benefits equally.
  
  
• Flexible workers: With remote and hybrid arrangements, employers should clarify how leave applies if staff are contracted to specific working days.
  
  

Transparent communication is key here: staff need to know exactly how their entitlement is calculated.

Carrying Over Annual Leave

Historically, the rule was that leave must be taken in the holiday year or lost, with limited exceptions. However, updates to the Working Time Regulations and special provisions introduced during the pandemic mean HR teams should revisit policies regularly.

Currently:

• Employees can carry over up to four weeks of statutory leave if prevented from taking it due to illness or maternity/paternity leave.
  
  
• Employers can allow additional carry-over as a contractual benefit.
  
  
• Brexit has also created subtle changes in how EU rulings apply, so UK businesses should keep an eye on new government guidance.
  
  

Clear policies around carry-over help avoid end-of-year bottlenecks where too many staff want to use up holiday at once.

Managing Requests and Ensuring Fairness

Every HR manager knows the crunch points: summer holidays, Christmas, and long weekends when everyone wants time off. Without a fair system, resentment can build quickly.

Common approaches include:

• First-come, first-served: Simple but can disadvantage those unable to book early.
  
  
• Rotational system: Spreads popular dates (e.g. Christmas Eve or New Year’s Eve) across different staff each year.
  
  
• Team-based planning: Managers balance requests to ensure business coverage.
  
  

Using HR software or leave-management tools can reduce admin and make policies more transparent. This not only saves time but also builds trust among employees.

Bank Holidays in 2025 and Beyond

One of the best ways to support staff planning is to publish the upcoming year’s bank holidays well in advance.

England & Wales Bank Holidays 2025:

• 1 January – New Year’s Day
  
  
• 18 April – Good Friday
  
  
• 21 April – Easter Monday
  
  
• 5 May – Early May Bank Holiday
  
  
• 26 May – Spring Bank Holiday
  
  
• 25 August – Summer Bank Holiday
  
  
• 25 December – Christmas Day
  
  
• 26 December – Boxing Day
  
  

Scotland also observes 2 January and St Andrew’s Day (30 November), while Northern Ireland includes St Patrick’s Day (17 March) and the Battle of the Boyne (12 July).

Highlighting these regional differences in your HR policy ensures consistency across offices and avoids confusion for staff.

HR Best Practices for Managing Holidays

Getting leave management right is about more than compliance — it directly impacts employee wellbeing and productivity.

Best practices include:

• Publish policies clearly – every employee should know their entitlement, how requests are processed, and what happens with carry-over.
  
  
• Be transparent about bank holidays – whether they are included in statutory leave or given as extras.
  
  
• Balance business needs with fairness – ensure critical operations remain covered without disadvantaging individuals.
  
  
• Use recognition and communication tools – acknowledging flexibility and fairness in leave management helps maintain morale and reduce disputes.
  
  

By making leave policies clear and equitable, HR teams strengthen trust and engagement across the workforce.

Bank holidays and annual leave may feel like routine HR administration, but they sit at the heart of employee satisfaction in the UK. Done well, they keep your organisation compliant, reduce disputes, and improve morale. Done poorly, they create confusion, disengagement, and even legal risk.

The key takeaway for UK HR managers: clarity and fairness are essential. With the right systems and policies in place, managing bank holidays and annual leave can become a source of stability and goodwill rather than conflict.

‍