Accruals and leave years
There are two ways your employer will manage your holiday entitlement, through either a ‘leave year’ or an ‘accrual’ system.
Leave years
Your ‘leave’ or ‘holiday’ year is a term used to describe the period in which your employer expects you to take your annual leave.
In your employment contract you may have an agreement with your employer about when your holiday year runs (eg 1 January to 31 December). If you do not have an agreement then your year will start on:
-1 October 1998 (if you started work before then)
-the date you started work (if you started work after the 1 October 1998)
If you start a new job part way through a leave year then you will be entitled to a proportion of your leave, depending on how long is left in the leave year.
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For example, if you start half way through the leave year then you will be entitled to half of your leave. This will then reset to the follow up at the start of the new leave year.
Similarly, if you leave your job part way through a leave year you will be entitled to a proportion of your leave.
Some employers run an ‘accrual’ system, where holiday entitlement is built up over the first year of employment. This means that for every month you work, you become entitled to one twelfth of your annual entitlement. So, after six months, you would be entitled to a half of your annual entitlement.
Accrual normally continues during statutory absences like maternity leave.
Carrying over holidays
You do not have a right to carry leave over. However, your employer may allow you to carry over any untaken holiday from one leave year to the next.
You must take all of your statutory minimum holiday entitlement each year. Only holiday on top of this can be carried over, and only if your employer gives you permission or it is allowed by your employment contract.
Payment in lieu for holiday or ‘buying out’
You are not allowed to exchange any untaken statutory holiday entitlement for pay. You must take all of your statutory holiday entitlement each year.