Did You Lose Your Holidays? The “Carry Over” Rules Explained

TL;DR: Too long, Didn’t read

  • The General Rule: Statutory holiday (your first 4 weeks) usually cannot be carried over. It is “Use it or Lose it.”

  • The Exception: If you couldn’t take holiday due to sickness or maternity leave, the law says you must be allowed to carry it over.

  • Employer’s Fault: If your boss refused to let you take leave (or didn’t tell you you’d lose it), the “Use it or Lose it” rule is illegal. You keep the days.

  • The Extra Days: Any holiday above the legal minimum (e.g., if you get 25 days + Bank Holidays) can usually be carried over if the contract says so.

It is the end of the year. You check your HR portal and realize you still have 5 days of holiday left. You assume you can save them for next summer. Then your manager drops the bombshell:

“Sorry, our policy is ‘Use it or Lose it’. Those days are gone.”

Is that legal? Can they just wipe out your paid leave? The answer is messy—but often, you have more rights than they admit.

The “Use It or Lose It” Rule

In the UK, the law splits your holiday into two pots:

  1. Statutory Leave (4 weeks): This is for your health and rest. The law says this should be taken in the current year.

  2. Additional Leave (1.6 weeks): This can be carried over if your employer agrees.

Generally, if you just “forgot” to book time off, the employer can wipe it. However, there are three massive exceptions where they cannot take your days away.

Exception 1: You Were Sick

If you were off on long-term sick leave and physically couldn’t take your holiday, you cannot lose it.

  • The Law: You can carry over up to 4 weeks of unused holiday.

  • The Limit: You usually have 18 months to use it.

  • See also: Sick Pay Rights

Exception 2: Maternity/Family Leave

If you were on Maternity, Paternity, or Adoption leave, you continue to accrue holiday as normal. If you couldn’t take it before the year ended, it must carry over. It is illegal discrimination to wipe holiday days because a woman was on maternity leave.

Exception 3: The “Employer’s Fault” (The Big One)

This is a recent legal change (thanks to the King v Sash Window case). Your employer cannot wipe your holiday if:

  1. They refused to let you take it (e.g., “We are too busy”).

  2. They failed to warn you that you would lose it.

  3. They treated you as “Self-Employed” (Gig Economy) and said you had no holiday rights.

If any of these happened, your holiday does not expire. It stacks up, and they must pay you for it when you leave.

Can I Ask to Be Paid Instead? No.

It is illegal for an employer to pay you cash for statutory holidays unless you are leaving the job. They cannot say: “Here is £500, now cancel your week off.” You must take the rest.

A Quick Story: Meet James

  • The Problem: James had 5 days of holiday left in December. His boss said: “We are too busy for you to take it, and it expires on Dec 31st. Tough luck.”

  • The Law: James checked the rules. Because his employer prevented him from taking the leave, the “Use it or Lose it” rule didn’t apply.

  • The Win: He sent a formal email quoting the Working Time Regulations. His boss was forced to let him carry the 5 days into January.

Summary: Don’t Let Them Wipe It

Check why you have days left.

  1. If you forgot: You might lose them.

  2. If you were sick: Carry them over.

  3. If they stopped you: Carry them over.

(Sources: ACAS – Checking Holiday Entitlement, Gov.uk – Holiday Entitlement)

This guide is for information purposes only. Check your specific employment contract for “Carry Over” policies.