As the year-end approaches, many employees find themselves with unused holiday leave. The question for employers is: should you allow carryover or enforce a ‘use it or lose it’ policy?
A strict ‘use it or lose it’ rule encourages employees to take regular breaks, reducing burnout and maintaining productivity. However, it can also lead to a rush to take leave in December, potentially disrupting business operations and leaving employees frustrated if they can’t get the time off they want.
On the other hand, allowing carryover—typically with a limit—offers flexibility and acknowledges that workloads don’t always allow for perfect holiday planning. Many businesses permit a few days to be carried into the first quarter of the next year, ensuring employees still get the rest they need without creating excessive accruals.
However, it’s crucial to set clear expectations. If leave is carried forward, employees should be encouraged to use it promptly. If someone complains they’ve been too busy to take their holiday, it’s worth reviewing their workload and reinforcing that taking time off is a priority, not a luxury.
Ultimately, the right approach depends on your company culture. Whichever policy you choose, communication is key—make sure employees understand the rules, plan ahead, and feel supported in taking the breaks they deserve.
If you are looking for help with HR policies for your business, then please get in touch and find out how we can help today.