Carrying Over Annual Leave: UK Rules Explained

18 February 2026

One of the most frequently asked questions about annual leave in the UK is whether unused holiday can be carried over into the next leave year. The answer is not as simple as a straightforward yes or no. The rules depend on which portion of your holiday you are trying to carry over, the reason it was not taken, and what your employment contract says. This article explains the legal framework around carrying over annual leave in 2026, including the special rules that apply when sickness, maternity, or other circumstances prevent you from using your holiday.

Understanding the Two Parts of Statutory Leave

To understand carry-over rules, you first need to know that the UK's 5.6-week statutory holiday entitlement is made up of two distinct parts. The first part is the basic 4 weeks (20 days for a full-time worker) that derives from the EU Working Time Directive, now retained in UK law. The second part is the additional 1.6 weeks (8 days for a full-time worker) that was added by the UK government to bring the total up to 5.6 weeks. These two portions have different carry-over rules, which is a crucial distinction that many employers and workers are not aware of.

The basic 4 weeks of leave is considered the more protected portion. Under the Working Time Regulations, this leave generally cannot be replaced with a payment in lieu, except when employment ends. The additional 1.6 weeks has slightly more flexibility in how it can be managed.

The Default Position: No Carry-Over

The default legal position under the Working Time Regulations is that statutory annual leave cannot be carried over from one leave year to the next. The intention behind this rule is to encourage workers to actually take their holiday for health and wellbeing purposes, rather than accumulating large banks of unused leave. If you simply choose not to take your holiday and your leave year expires, you lose it under the default rules.

However, this default position has been significantly modified by case law and by specific circumstances that create exceptions. In practice, there are several important situations where carry-over is permitted or even required.

When Carry-Over Is Required by Law

Sickness Preventing You from Taking Leave

If you are off work due to long-term sickness and unable to take your annual leave before the end of the leave year, you have the right to carry over the basic 4 weeks of EU-derived leave into the following year. This principle was established through a series of court cases, most notably the Stringer v HMRC case at the European Court of Justice. The rationale is that you should not lose your holiday rights simply because illness prevented you from exercising them.

There is, however, a time limit on how long carried-over sick leave can be preserved. The generally accepted limit is 18 months from the end of the leave year in which it was accrued. After that period, the carried-over leave expires. This means that if you are on long-term sick leave for more than 18 months, you could still lose some of your earliest accrued holiday, but you will always have a rolling window of preserved leave.

The additional 1.6 weeks of UK-specific leave does not automatically carry over during sickness. Whether this portion can be carried over depends on what your employment contract or company policy says.

Maternity, Paternity, and Shared Parental Leave

Workers who are on maternity leave, paternity leave, adoption leave, or shared parental leave continue to accrue annual leave throughout the entire period of their leave. Since they are unable to take annual leave simultaneously with statutory family leave, any accrued but untaken holiday must be carried over to the following leave year.

This can result in a significant amount of carried-over leave. For example, a worker who takes 52 weeks of maternity leave will accrue their full 5.6 weeks of holiday during that time. If their leave year ends while they are still on maternity leave, all of that accrued holiday carries forward. Employers often work with returning employees to agree a practical plan for using this carried-over leave.

                Tip: If you are going on maternity or paternity leave, speak to your employer about your annual leave before you go. Some employers will let you take accrued holiday immediately before or after your family leave, which can effectively extend your time away from work.
            

Employer Prevented You from Taking Leave

If your employer actively prevented you from taking your annual leave, or failed to provide you with a reasonable opportunity to do so, you are entitled to carry over the untaken leave. This was confirmed in the landmark case of Kreuziger v Land Berlin and reinforced by the Max-Planck case, which established that employers have a positive obligation to encourage workers to take their leave and to warn them that untaken leave will be lost.

In practical terms, this means that if your employer refused your holiday requests without providing alternative dates, or if the workload was so heavy that taking leave was effectively impossible, you have strong grounds for carrying over your unused holiday. Your employer cannot simply point to a "use it or lose it" policy if they made it difficult for you to use your entitlement.

Contractual Carry-Over

Many employers offer holiday entitlement above the statutory minimum. Any holiday beyond the 5.6-week statutory entitlement is governed entirely by your employment contract, not by legislation. This means your employer can set whatever carry-over rules they like for contractual holiday, including allowing carry-over, limiting it, or prohibiting it entirely.

It is increasingly common for employers to allow workers to carry over a limited amount of holiday, typically between 3 and 5 days, into the next leave year. Some organisations offer a "buy and sell" holiday scheme where you can exchange unused leave for extra pay, or purchase additional days. These arrangements are entirely at the employer's discretion and should be clearly set out in your contract or employee handbook.

The Impact of COVID-19 Legislation

During the COVID-19 pandemic, the UK government introduced temporary regulations allowing workers to carry over up to 4 weeks of annual leave into the following two leave years if it was not reasonably practicable for them to take it due to the effects of the pandemic. While these specific regulations have now expired, they set an important precedent and increased awareness of carry-over rights more broadly.

Some of the principles from the pandemic period have influenced subsequent employment practices, with many employers now adopting more flexible carry-over policies as standard. If you are unsure about your current employer's policy, check your contract or staff handbook, as it may have been updated since the pandemic.

Practical Steps to Protect Your Holiday

To ensure you do not lose your holiday entitlement, consider these practical steps:

Track your leave carefully. Use our Holiday Entitlement Calculator to know exactly how many days you are entitled to and how many you have remaining.
Plan ahead. Book your holiday early in the leave year to avoid a scramble at the end. Spreading your leave throughout the year is better for your wellbeing too.
Know your leave year dates. Your leave year might run from January to December, April to March, or from your start date. Check your contract to be sure.
Put requests in writing. If your employer refuses a holiday request, ask for the refusal in writing. This creates a record that could support a carry-over claim later.
Understand your contract. Read the annual leave section of your employment contract carefully. It should state the carry-over policy and any deadlines for using carried-over leave.

What Happens to Carried-Over Leave?

Carried-over leave generally must be used within a reasonable period in the new leave year. The exact timeframe depends on the reason for the carry-over. For leave carried over due to sickness, the 18-month limit applies. For leave carried over due to maternity or employer refusal, there is no specific statutory time limit, but employers can set reasonable deadlines through their policies.

If carried-over leave is not used and you subsequently leave your employment, you are entitled to a payment in lieu of any accrued but untaken holiday, including any valid carried-over days. This payment should be included in your final pay packet and calculated at your normal rate of pay.

Summary

Carrying over annual leave in the UK is governed by a combination of legislation, case law, and contractual terms. The key points to remember are that the basic 4 weeks of leave has stronger carry-over protections than the additional 1.6 weeks, that sickness, family leave, and employer obstruction can all create carry-over rights, and that your contract may provide additional flexibility. Understanding these rules helps you protect your time off and ensure that you receive every day of leave you are entitled to.