Here comes the sun: the essential employment guide to annual leave in Ireland

Holiday season is upon us. It's a time for relaxation and for employers and employees in Ireland to be clear on their statutory rights and obligations when it comes to annual leave entitlements.

In this article, Ogier's Employment team provides comprehensive guidance on annual leave in Ireland, outlining the fundamental principles employers and employees need to understand to ensure compliance and best practice during the busy summer months.

Who is eligible for annual leave in Ireland?

Under Section 19 of the Organisation of Working Time Act 1997 (1997 Act) all employees are entitled to annual leave.

How to calculate how much leave an individual is eligible for?

Employers must provide details of an employee's annual leave entitlement in their employment contract.

There are three methods of calculation to cover varying working patterns: 

• an employee working 1,365 hours is entitled to four working weeks in a leave year 
• an employee working at least 117 hours is entitled to one-third of a working week for each month in the leave year
• an employee is entitled to at least 8% of the hours that they work in a leave year which is subject to a maximum of four working weeks

Annual leave should include an unbroken block of two weeks if the employee has worked at least eight months in the leave year.

How is an agency worker's leave entitlement determined?

By the party that pays their wages, which may be the client company or the employment agency. 

Can annual leave be carried over? 

Annual leave should be taken within the related leave year. It is at the employer's discretion to allow an employee to carry over their annual leave entitlement for a period of six months into the next leave year.  

Can an employee claim back days if they are ill during their annual leave?

If an employee becomes ill during their annual leave and provides a medical certificate, these days will not be regarded as annual leave. 

If an employee is on long-term sick leave and cannot take their annual leave due to illness, leave may be carried over for a period up to 15 months.  

Can an employee be paid in lieu of time off?

Employees must be granted time off to protect their health and safety. If an employee does not utilise their annual leave entitlement in the leave year, employers cannot pay their employee in lieu of the minimum statutory annual leave entitlement. 

However, if employment is terminated, the employee is eligible to be paid for any annual leave that has accrued but has not been taken. 

Can employees be paid in lieu of public holidays?

Full-time employees are entitled to public holidays as well as their paid annual leave. However, employers can choose to provide:

• a paid day off on the day of the public holiday 
• a paid day off within a month of that day 
• an additional day of annual leave 
• an additional day of pay 

Part-time workers are eligible when they have worked a total of 40 hours in the previous five weeks. 

What records should an employer keep relating to hours worked?

Record keeping can be tricky to navigate when many employees work remotely and flexibly. 

Nevertheless, employers must keep a record of employees' hours worked, breaks and rest periods for three years, unless there are electronic or manual record keeping systems in place. 

What happens if an employer breaches the 1997 Act?

A complaint to the Workplace Relations Commission must be made within six months of the date of the alleged breach.

If the complaint is well-founded, the Workplace Relations Commission may require the employer to comply with the rules they have breached and may also require them to pay the employee compensation not exceeding two years pay.

How Ogier can help 

Our Employment team assist employers with drafting and advising on contractual policies, including annual leave obligations.

For further information or for assistance with complying with the legislation mentioned, contact our team via the details provided below. 

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice