Almost all workers are legally entitled to 5.6 weeks’ paid holiday a year (known as statutory leave entitlement or annual leave).

This includes:

•   agency workers
•   workers with irregular hours
•   workers on zero-hours contracts

An employer can include bank holidays as part of statutory annual leave.

Coronavirus (COVID-19) does not affect workers’ entitlement to holiday pay and leave, except for carrying over leave.

Statutory annual leave entitlement

Most workers who work a 5-day week must receive at least 28 days’ paid annual leave a year. This is the equivalent of 5.6 weeks of holiday.

Working part-time

Part-time workers are entitled to at least 5.6 weeks’ paid holiday, but this will amount to fewer than 28 days.

For example, if they work 3 days a week, they must get at least 16.8 days’ leave a year (3 × 5.6).

Use a holiday entitlement calculator to work out a part-time workers’ leave, if you need to.

Irregular hours

People working irregular hours (like shift workers or term-time workers) are entitled to paid time off for every hour they work. This is accrued as the hours worked so far, multiplied by 12.07%, less any holidays already used.

Many find it helpful to get an estimate of holiday entitlement by calculating leave based on days or hours worked in an average week.

Limits on statutory leave

Statutory paid holiday entitlement is limited to 28 days. For example, staff working 6 days a week are only entitled to 28 days’ paid holiday.

Bank holidays

Bank or public holidays do not have to be given as paid leave.

An employer can choose to include bank holidays as part of a worker’s statutory annual leave.

Extra leave

An employer can choose to offer more leave than the legal minimum. They do not have to apply all the rules that apply to statutory leave to the extra leave. For example, a worker might need to be employed for a certain amount of time before they become entitled to it.

Other aspects of holiday entitlement

Workers have the right to:

•   get paid for leave
•   build up (‘accrue’) holiday entitlement during maternity, paternity and adoption leave
•   build up holiday entitlement while off work sick
•   request holiday at the same time as sick leave

Disputes

Paid annual leave is a legal right that an employer must provide. If a worker thinks their right to leave and pay are not being met there are a number of ways to resolve the dispute.

The weekly rate for Statutory Sick Pay (SSP) is £96.35 for up to 28 weeks. It is paid:

•   for the days an employee normally works – called ‘qualifying days’
•   in the same way as wages, for example on the normal payday, deducting tax and National insurance

Use the SSP calculator to work out the actual amount, for example for a daily rate.

Some employment types like agency workers, directors and educational workers have different rules for entitlement. You may still have to pay SSP even if you stop trading.

You cannot force your employees to take annual leave when they’re eligible for sick leave.

When to start paying SSP

SSP is paid when the employee is sick for at least 4 days in a row (including non-working days).

You cannot count a day as a sick day if an employee has worked for a minute or more before they go home sick.

If an employee works a shift that ends the day after it started and becomes sick during the shift or after it has finished, the second day will count as a sick day.

When to stop paying SSP

SSP stops when the employee comes back to work or no longer qualifies for it, ie after 28 weeks.

Record keeping

You’ll need to keep records of SSP you’ve paid to an employee who was off work because of COVID-19 if you want to reclaim it.

You’ll need to keep the following records for 3 years after the end of the tax year you paid SSP:

•   the dates the employee was off sick
•   which of those dates were qualifying days
•   the reason they said they were off work
•   the employee’s National Insurance number

You do not need to keep records of SSP paid to employees who are off sick for another reason.

You can choose how you keep records of your employees’ sickness absence. HMRC may need to see these records if there’s a dispute over payment of SSP.

Your tax code is made up of several numbers and a letter.

1257L is the tax code currently used for most people who have one job or pension.

HMRC will usually contact you to explain how they worked out your individual tax code if your tax code changes.

What the numbers mean

The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year.

HMRC works out your individual number based on your tax-free Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any benefits from your job (such as a company car).

What the letters mean

Letters in your tax code refer to your situation and how it affects your Personal Allowance.

If your tax code has ‘W1’ or ‘M1’ or ‘X’ at the end

These are emergency tax codes.

If your tax code has a ‘K’ at the beginning

Tax codes with ‘K’ at the beginning mean you have income that is not being taxed another way and it’s worth more than your tax-free allowance.

For most people, this happens when you’re:

•   paying tax you owe from a previous year through your wages or pension
•   getting benefits you need to pay tax on – these can be state benefits or company benefits

Your employer or pension provider takes the tax due on the income that has not been taxed from your wages or pension – even if another organisation is paying the untaxed income to you.

Employers and pension providers cannot take more than half your pre-tax wages or pension when using a K tax code.

Statutory Maternity Pay (SMP) is paid for up to 39 weeks. You get:

• 90% of your average weekly earnings (before tax) for the first 6 weeks
• £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks

SMP is paid in the same way as your wages (for example monthly or weekly). Tax and national insurance will be deducted.

You can use this maternity pay calculator to work out how much you could get. 

If you take Shared Paternal Leave you’ll get Statutory Shared Paternal Pay (ShPP). ShPP is £151.97 a week or 90% of your average weekly earnings, whichever is lower. 

SMP usually starts when you take your maternity leave.

It starts automatically if you’re off work for a pregnancy-related illness in the 4 weeks before the week (Sunday to Saturday) that your baby is due. 

Eligibility 

You qualify for Statutory Maternity Leave if: 

• You’re an employee, not a ‘worker’
• You give your employer the correct notice

It does not matter how long you’ve been with your employer, how many hours you work or how much you get paid. 

To qualify for SMP you must:

• Earn on average at least £120 a week
• Give the correct notice and proof you’re pregnant
• Have worked for your employer continuously for at least 26 weeks continuing into the ‘qualifying week’ – the 15th week before the expected week of childbirth  

How to claim

Statutory Maternity Leave

At least 15 weeks before your due date, tell your employer when the baby is due and when you want to start your maternity leave. Your employer can ask for this in writing. 

Your employer must write to you within 28 days confirming your start and end dates. 

Statutory Maternity Pay

Tell your employer you want to stop work to have a baby and the day you want your SMP to start. You must give them at least 28 days’ notice (in writing if they ask for it) and proof that you’re pregnant. 

Your employer must confirm within 28 days how much SMP you’ll get and when it will start and stop. 

If they decide you’re not eligible, they must give you form SMP1 within 7 days of making their decision and explain why.