Annual leave entitlement in Ireland: an employer’s guide

What is annual leave in Ireland?

Annual leave is paid time off granted by employers. It supports rest and productivity and is a statutory obligation. Employers may offer more than the legal minimum, but any enhanced policy should be clear and applied consistently.

How is holiday entitlement calculated in Ireland?

Use the three statutory methods and apply the one that gives the highest result (subject to a maximum of four of the employee’s normal working weeks):

• Four working weeks in a leave year if the employee works at least 1,365 hours (unless they changed employment during that year).
• One-third of the employee’s working week per calendar month where they work at least 117 hours in that month (e.g., 1.67 days × 12 = 20 days for a five-day worker).
• 8% of all hours worked in the leave year, capped at four working weeks.

How do I calculate annual leave pay?

Fixed pay/salary: pay the normal weekly pay for the last week worked. Include regular bonuses/allowances not based on work done; exclude overtime.

Variable/commission or productivity-based pay: pay the average weekly earnings over the 13 weeks immediately before leave starts (or, if no work in that period, the 13 weeks before the last working day before leave). Overtime is excluded.

Do employees accrue annual leave while on other types of leave?

Include all hours worked and certain protected absences when calculating entitlement. Annual leave accrues during:

• time actually worked;
• time spent on annual leave;
• maternity leave;
• paternity leave;
• parental leave;
• parents’ leave;
• adoptive leave;
• force majeure leave;
• the first 13 weeks of carer’s leave;
• and certified sick leave.

Employees do not accrue annual leave during occupational injury leave, temporary lay-off, or a career break.

What happens if an employee is sick during annual leave?

If certified sick during scheduled annual leave, those days are not counted as annual leave; the annual leave is preserved for later use. For long-term certified sick leave, accrued annual leave may be carried over for up to 15 months after the end of the year in which it was earned. If employment ends within this period and leave could not be taken due to illness, payment in lieu for that untaken accrued leave is due.

What is the annual leave notice period and who approves leave?

Employees usually request dates with an agreed period of advance notice so employers can arrange cover. Employers approve holidays and must have regard to family responsibilities and the need for rest and recreation when deciding dates. (The sources reviewed do not specify an exact statutory notice length; check your contract/policy and the Organisation of Working Time legislation for any precise requirements.)

When must annual leave be taken or carried over?

Statutory annual leave must be given within the leave year or, with the employee’s consent, within the first six months of the next year. Employers are responsible for ensuring statutory leave is taken on time. Leave above the statutory minimum may be carried over by agreement.

Can I pay in lieu of annual leave or when employment ends?

It is unlawful to pay in lieu of the statutory minimum annual leave except on termination of employment, when payment for accrued but untaken leave is required.

What is the maximum annual leave entitlement in Ireland?

The maximum statutory entitlement is four of the employee’s normal working weeks in a leave year (subject to the calculation rules above). Employers can grant more by policy.