Requiring holiday to be taken (shutdown or use-it-or-lose-it) letter
Gives the statutory notice that employees must take holiday on specified dates, or use remaining entitlement before the year ends.
A Christmas or summer shutdown, a site closure between contracts, or an employee sitting on three weeks of untaken leave in November. You can require leave to be taken, with notice of at least twice the length of the leave.
Before it goes
- Notice is in time: at least twice the length of the leave (a two-week shutdown needs four weeks' notice).
- Your written statement or policy says holiday may be required to be taken at specified times, or you accept relying on the regulations alone.
The letter
Filling it in
- Notice period
- Twice the leave. Diarise the shutdown letter for the start of October if you close for two weeks at Christmas.
- Which version
- Delete the one you are not using. For a shutdown, list the exact working days; for use-it-or-lose-it, name the remaining balance from the leave system.
What the law says
- Working Time Regulations 1998 reg.15: an employer may require a worker to take leave on particular days by giving notice at least twice as long as the leave; a relevant agreement (the contract or policy) can vary the notice.
- Working Time Regulations 1998 reg.13 and 13A: the statutory 5.6 weeks must be taken in the leave year, with limited carry-over; the employer must give workers a reasonable opportunity to take it and encourage them to.
What turns this letter into a claim
- Do not spring a shutdown on people with a fortnight's notice. It is unlawful and they may have no leave left.
- Do not let holiday lapse for someone who was on long-term sick or maternity leave. Statutory holiday they could not take carries over.
Questions people ask
Can I make staff take holiday over Christmas?
Yes, with notice of twice the length of the closure, and ideally with the closure written into the contract or policy so nobody is surprised. Most construction firms do exactly this.
What if an employee has no holiday left for the shutdown?
The options are unpaid leave by agreement, allowing them to borrow from next year, or finding them work if any exists. You cannot make them take leave they do not have. This is why the letter goes out early.
Does untaken holiday have to be paid instead?
Not during employment; statutory leave is for taking, not selling. On termination, accrued untaken holiday is paid. Contractual holiday above the minimum follows the contract.
The letter, with the names already in
Employ AI drafts letters like this one from the employee's record, so the dates, service and pay are already right, and the disciplinary module writes the invitation and outcome letters from the case itself. All 44 letter families, 49 UK policies, GPS clock-in, rotas, leave and timesheets: £2.50 a month plus £1 per employee. 14 days free, no card.
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