The Employer's Guide to UK Statutory Leave Entitlements

Managing employee leave is one of those responsibilities that seems simple until you actually have to do it. Between annual leave, sick pay, maternity and paternity leave, shared parental leave, and a handful of other statutory entitlements, the rules can be surprisingly complex — especially for small businesses without a dedicated HR team.

Getting it wrong can result in underpayments, tribunal claims, and unhappy employees. Getting it right means your team knows where they stand, your business runs smoothly during absences, and you stay on the right side of employment law.

This guide covers every statutory leave entitlement UK employers need to know about.

Annual leave

Every worker in the UK is entitled to a minimum of 5.6 weeks of paid annual leave per year. For someone working a standard five-day week, that works out to 28 days (including bank holidays, unless your contract specifies otherwise).

Part-time workers receive the same 5.6 weeks, calculated pro rata. A worker on three days per week is entitled to 16.8 days of leave per year.

Key points for employers:

You can include bank holidays within the 28-day minimum. If your business closes on 8 bank holidays, employees are left with 20 days of "discretionary" annual leave.
You can set rules about when leave is taken. You can require employees to take leave during shutdown periods (such as Christmas), as long as you give at least twice as much notice as the leave period (so two weeks' notice for one week of shutdown).
Carrying over leave is limited to 8 days under the Working Time Regulations, but many employers offer more generous carry-over policies. Leave that accrues during maternity, paternity, or long-term sick leave must be allowed to carry over.
Holiday pay should reflect normal earnings, including regular overtime, commission, and allowances. A 2014 ruling established that holiday pay based only on basic salary may not be sufficient if the worker regularly earns more.

Tracking annual leave accurately is essential. Errors compound over time, and an employee who discovers they have been underpaid holiday pay for several years can claim arrears going back up to two years. Using payroll software that integrates leave tracking with pay calculations helps avoid these issues.

Statutory Sick Pay (SSP)

When an employee is off sick for four or more consecutive days (including non-working days), they are entitled to Statutory Sick Pay. SSP is currently £109.40 per week and is payable for up to 28 weeks.

The first three qualifying days are waiting days — no SSP is payable during this period. A qualifying day is any day the employee would normally work.

To qualify, the employee must:

Be classed as an employee (not a worker or contractor)
Earn at least the lower earnings limit (£123 per week as of 2024/25)
Have been off sick for at least four days in a row
Notify you according to your absence reporting procedures

Many employers offer contractual sick pay above the statutory minimum, but there is no legal obligation to do so. Whatever your policy, make sure it is clearly documented in employment contracts or your staff handbook.

Maternity leave and pay

All pregnant employees are entitled to up to 52 weeks of maternity leave, regardless of how long they have worked for you. This is split into:

Ordinary Maternity Leave (OML): The first 26 weeks
Additional Maternity Leave (AML): The next 26 weeks

Statutory Maternity Pay (SMP) is payable for up to 39 weeks:

Weeks 1 to 6: 90% of average weekly earnings (no cap)
Weeks 7 to 39: The lower of £184.03 per week or 90% of average weekly earnings

To qualify for SMP, the employee must have been continuously employed by you for at least 26 weeks by the 15th week before the expected week of childbirth, and must earn at least the lower earnings limit.

Employees who do not qualify for SMP may be entitled to Maternity Allowance from the government instead.

Important points:

An employee on maternity leave continues to accrue annual leave and contractual benefits (except pay).
You cannot dismiss an employee because of pregnancy or maternity leave. The protections extend from the start of pregnancy until the end of maternity leave.
The employee must give at least 15 weeks' notice before their due date of when they intend to start maternity leave.

Paternity leave and pay

Eligible employees are entitled to either one or two consecutive weeks of paternity leave, to be taken within 56 days of the birth (or placement, in the case of adoption).

Statutory Paternity Pay (SPP) is paid at the same flat rate as SMP weeks 7 to 39 — currently £184.03 per week or 90% of average weekly earnings, whichever is lower.

To qualify, the employee must have been continuously employed by you for at least 26 weeks by the 15th week before the baby is due, and must earn at least the lower earnings limit.

Recent changes have introduced more flexibility around when paternity leave can be taken, allowing it to be split into two separate blocks rather than taken consecutively. Check the latest GOV.UK guidance for current rules.

Shared Parental Leave (SPL)

Shared Parental Leave allows eligible parents to share up to 50 weeks of leave and up to 37 weeks of statutory pay between them. The mother must curtail her maternity leave (or Maternity Allowance) to create the shared entitlement.

SPL can be taken in blocks, with periods of work in between, as long as you agree to the pattern. Parents can even take leave at the same time if they choose.

The statutory pay rate for SPL is the same as SMP weeks 7 to 39.

While SPL is a valuable entitlement, uptake has been relatively low since its introduction in 2015. This is partly because the financial incentive is limited (the first six weeks of maternity pay at 90% are more generous than ShPP) and partly because the administrative process is complex.

As an employer, you should have a clear SPL policy and be prepared to handle requests efficiently, even if they are infrequent.

Adoption leave and pay

Employees who adopt a child are entitled to Statutory Adoption Leave and Pay on broadly similar terms to maternity leave and pay. One member of the couple takes adoption leave; the other may be entitled to paternity leave and SPL.

The rules for adoption leave mirror maternity leave in most respects — 52 weeks of leave, with Statutory Adoption Pay for up to 39 weeks at the same rates as SMP.

Parental leave (unpaid)

Separate from maternity, paternity, and shared parental leave, employees with at least one year of continuous service are entitled to up to 18 weeks of unpaid parental leave per child, up to the child's 18th birthday.

Parental leave must be taken in blocks of one week (unless the child is disabled, in which case single days are permitted). Employees can take a maximum of four weeks per child per year, unless you agree otherwise.

This entitlement is often forgotten by both employers and employees, but it can be a useful option for parents who need time off beyond their paid leave entitlements.

Time off for dependants

All employees have the right to take a reasonable amount of unpaid time off to deal with an emergency involving a dependant. This covers situations such as a child falling ill, a dependant being injured, or unexpected disruption to care arrangements.

There is no set limit on how much time can be taken, and there is no qualifying period — the right applies from day one. However, it is intended for genuine emergencies and short-term situations, not ongoing care needs.

Bereavement leave

Since April 2020, parents who lose a child under the age of 18 (or suffer a stillbirth after 24 weeks of pregnancy) are entitled to two weeks of statutory parental bereavement leave. Statutory Parental Bereavement Pay is payable at the same flat rate as SPP.

There is no general statutory right to bereavement leave for other family members, though many employers offer compassionate leave as part of their benefits package.

Jury service and public duties

Employees called for jury service are entitled to time off work. There is no statutory right to paid leave for jury service, but employees can claim an allowance from the court to cover loss of earnings.

Employees who hold certain public positions (such as magistrates, councillors, or school governors) are also entitled to reasonable unpaid time off to carry out their duties.

Managing leave effectively

The more employees you have, the more complex leave management becomes. Overlapping absences, part-time calculations, carry-over disputes, and the interaction between different types of leave can quickly become overwhelming.

Investing in payroll and HR software that handles leave calculations, tracks entitlements, and integrates with your pay runs is one of the most practical things a growing business can do. It reduces errors, saves time, and gives both you and your employees confidence that everything is being handled correctly.

The statutory entitlements described in this guide are the legal minimum. Many employers choose to go further — offering enhanced maternity pay, additional annual leave, or paid compassionate leave. These are decisions for your business based on your budget and values. But whatever you offer, make sure the statutory baseline is always covered.