Creating an annual leave policy that's both legally compliant and employee-friendly can feel like walking a tightrope. To help you craft the perfect policy for your business, we've compiled 10 real-world examples from successful UK small businesses, each addressing different workplace scenarios and needs.
1. The Standard Small Business Policy
Perfect for: Traditional 9-5 businesses with fixed working hours
Holiday allowance: 28 days including bank holidays
Notice period: Double the length of requested leave
Key feature: Simple, straightforward approach
"Annual leave entitlement is 20 days plus bank holidays. Leave runs from January to December, with a maximum of 5 days carry-over permitted. Requests must be submitted through our online system with notice period of twice the length of leave requested. During peak periods (December and school summer holidays), leave is granted on a first-come, first-served basis, with a maximum of 2 team members off simultaneously."
2. The Flexible Working Policy
Perfect for: Companies with hybrid or remote teams
Holiday allowance: 33 days including bank holidays
Notice period: 1 week minimum
Key feature: Additional flexibility for remote workers
"Employees receive 25 days plus bank holidays. Remote workers may work from alternative locations for up to 10 days per year without using holiday allowance, provided their working hours and productivity remain unchanged. Core hours must be maintained in UK time zones. Leave requests must be submitted 1 week in advance through our digital system, with exceptions for emergencies."
3. The Retail Business Policy
Perfect for: Retail and customer-facing businesses
Holiday allowance: 28 days including bank holidays
Notice period: 3 weeks for peak periods
Key feature: Seasonal restrictions
"Full-time employees receive 28 days including bank holidays. Blackout periods apply during peak trading (Black Friday to December 24th, and Easter week). Maximum two staff members per department may take leave simultaneously. Bank holiday working is rotated fairly among all staff, with time off in lieu or double pay provided. Leave during school holidays is allocated on a rotation basis."
4. The Start-up Growth Policy
Perfect for: Fast-growing tech companies
Holiday allowance: 35 days including bank holidays
Notice period: 1 week standard, 2 weeks for 3+ days
Key feature: Unlimited leave after 2 years
"First two years: 27 days plus bank holidays. After two years' service, unlimited paid leave with manager's approval, subject to minimum 27 days taken annually for wellbeing. Mandatory 2-week disconnection period annually. Leave must be taken in a way that doesn't impact project deliverables or team objectives. Maximum 10 consecutive days unless exceptional circumstances."
5. The Professional Services Policy
Perfect for: Consultancies and service-based businesses
Holiday allowance: 30 days including bank holidays
Notice period: Varies by length of leave
Key feature: Client service protection
"Annual entitlement of 22 days plus bank holidays, increasing by 1 day per year of service up to 27 days. Leave requests must account for client commitments and project deadlines. For leave over 5 days, 4 weeks' notice required. Client-facing staff must ensure handover plans are in place. Maximum 2 weeks consecutive leave unless approved by director level."
6. The Part-Time Friendly Policy
Perfect for: Businesses with significant part-time workforce
Holiday allowance: Pro-rata calculation
Notice period: 2 weeks standard
Key feature: Fair treatment of part-time staff
"Holiday entitlement is calculated as 5.6 times your weekly working hours. Bank holidays are calculated pro-rata for part-time staff, with time off in lieu if a bank holiday falls on your usual working day. Leave is allocated in hours rather than days to ensure accurate tracking. Part-time staff have proportional priority for peak period leave requests."
7. The Hospitality Policy
Perfect for: Restaurants, hotels, and hospitality venues
Holiday allowance: 28 days including bank holidays
Notice period: 4 weeks for peak periods
Key feature: Peak period management
"All employees receive statutory 5.6 weeks annual leave. Bank holiday working is standard with time off in lieu. Peak period leave (December, school holidays, bank holiday weekends) requires 4 weeks' notice and is approved based on service length priority. Maximum 2 weeks consecutive leave during peak season. Weekend leave limited to 6 weekends per year unless exchanged with colleagues."
8. The Manufacturing Policy
Perfect for: Production and manufacturing businesses
Holiday allowance: 28 days including bank holidays
Notice period: 2 weeks minimum
Key feature: Fixed shutdown periods
"Annual shutdown periods: 1 week at Christmas, 1 week in summer (counts from allowance). Remaining 18 days flexible leave. Maximum 3 production staff off simultaneously per shift. Bank holiday working rotated fairly with enhanced pay. Emergency leave requires manager approval and minimum 24 hours notice where possible."
9. The Healthcare Policy
Perfect for: Healthcare and essential services
Holiday allowance: 28 days including bank holidays
Notice period: 6 weeks for peak periods
Key feature: Essential coverage requirements
"Leave allowance: 28 days including bank holidays. Minimum staffing levels must be maintained at all times. December leave requests must be submitted by September 1st. Maximum 2 weeks consecutive leave. Bank holiday working attracts double pay plus time off in lieu. Emergency shift swaps permitted with manager approval."
10. The Progressive Small Business Policy
Perfect for: Modern, employee-focused businesses
Holiday allowance: 32 days including bank holidays
Notice period: Flexible with minimum 1 week
Key feature: Employee wellbeing focus
"Base allowance of 24 days plus bank holidays. Additional days: 1 birthday day, 2 wellbeing days, 1 community service day. Buy/sell up to 5 days annually. Minimum 1 week notice for leave requests. No maximum consecutive days limit but subject to business needs. Unlimited unpaid leave option after 1 year service. Regular home country visits supported for international staff."
Implementing Your Policy
Remember, the best policy is one that's consistently and fairly applied. Whatever approach you choose, ensure it's clearly documented, easily accessible, and supported by reliable tracking systems. Modern leave management software can help automate these policies, reducing administration time and ensuring fair application.
Looking to implement or update your leave policy? Team Toggle can help automate any of these policy types, ensuring consistent application and reducing administrative burden. Start your free trial today and see how easy leave management can be.