It is beneficial to both your business and your employees if you manage staff holiday entitlement correctly.
Disagreements over holidays and holiday pay are common if entitlements are not clearly agreed and set out in writing. These disagreements could lead to a deterioration in your relationship with your employees and possible complaints to industrial tribunals.
In addition, almost all employees above school leaving age are entitled to statutory paid holiday entitlement, so you should be aware of what this means for your business and manage how it is worked out for each employee.
Advantages of managing staff holiday entitlement
Effectively managing employee holiday entitlement can bring a number of business benefits:
- Employees who are able to take regular holidays can feel more valued and become more motivated about their work which helps them to perform more effectively.
- Having a break from the workplace ensures employees are less prone to accidents and less likely to suffer from stress because they have regular opportunity to rest.
- Having an annual leave policy and including paid holiday entitlement in employees’ employment contracts ensures the rules and processes are clear to everyone. This will help you to take a consistent approach to annual leave across the business, so that employees feel they have been treated fairly.
- Having a policy and appropriate procedures in place also minimises the opportunity for disputes. An employee is more likely to be granted an annual leave request if the appropriate procedure has been followed and they have given you sufficient notice of the leave so you can prepare for the absence.
- You should also experience a decrease in sick leave and staff turnover because staff feel more appreciated overall and comfortable in their role.