Annual Leave Entitlement at a Glance

Under Irish law, all employees are entitled to paid time off. This entitlement applies whether the employee is full-time, part-time, temporary, or permanent. All full-time employees are entitled to 4 weeks

 

Methods of Calculating Annual Leave

There are three statutory methods to calculate annual leave in Ireland. Employers should use whichever method gives the employee the greatest entitlement:

• Method 1: If the employee has worked at least 1,365 hours in the leave year (for a full-time role), they are entitled to the full 4 working weeks of paid annual leave. This method does not apply if the employee changed jobs during the leave year.
• Method 2: Employees earn one-third of a working week for each calendar month in which they worked at least 117 hours.
• Method 3: Calculate 8% of the total hours worked in the leave year, subject to a maximum of 4 working weeks.

These methods are particularly relevant for part-time or variable-hours staff. Employers must ensure the method used provides the most favourable outcome for the employee.

 

Accrual Options

Whichever method you use, leave can accrue:

• Lump sum at the start of the leave year
• Pro rata, e.g. 1.66 days per month (for 20 days/year)
• Based on hours worked, especially for part-time or variable hour staff

 

Part-Time Employees

Part-time employees are entitled to the same four weeks’ leave, proportionate to time worked.

You can calculate it using:

• 8% of hours worked, subject to a maximum of 4 working weeks
• Or multiply the number of days worked per week by 4 to determine their total entitlement

Example: An employee who works 3 days/week: 4 weeks × 3 = 12 days annual leave

 

Annual Leave During Family Leave

Employees continue to accrue annual leave during all statutory family leave, including:

• Maternity Leave
• Adoptive Leave
• Paternity Leave
• Parental Leave
• Parents Leave
• Carer’s Leave

 

Holiday Leave Administration and Approval

It is important that annual leave is managed clearly and transparently. Employers should:

• Implement a formal leave request and approval system, ensuring that all annual leave is requested in advance and recorded.
• Maintain written records of all annual leave taken and entitlements accrued.
• Clearly show annual leave pay (where applicable) on employee payslips- this is particularly important for WRC Inspections
• Communicate that approval is subject to business needs – employers may lawfully refuse annual leave if the timing does not suit operational requirements, provided they act fairly and give reasonable notice.

 

Employer Checklist

• Decide whether to use calendar year or leave year (anniversary date)
• Communicate method of calculation in employee handbooks and contracts
• Calculate leave accurately for part-time and irregular hours staff
• Include accrual during all statutory leave (e.g. maternity, parental)
• Keep detailed records of leave accrued and taken
• Review and update your leave policy annually
• Ensure carry-over policies are clear and legally compliant
• Apply leave policy consistently across the workforce

 

Questions?

Need help with an Annual Leave Policy or calculation? Get in touch with us using the contact details below.