Every employee in Ireland is entitled to a minimum of four working weeks of annual leave per year. This guide explains how entitlements are calculated, what the law says about part-time staff, and how to handle carryover, public holidays, and pay Read more
Annual leave in Ireland is one of the most regulated areas of Irish employment law. Whether you manage a team of five or five hundred, your obligations are the same: provide employees with their full statutory holiday entitlement and maintain accurate records. This guide, updated for the 2026/2027 leave year, covers everything employers and HR managers need to know about annual leave entitlement in Ireland, including calculation methods, part-time rules, public holidays, carry-over provisions, and your legal obligations.
Under the Organisation of Working Time Act 1997, all employees in Ireland are entitled to a minimum of 4 working weeks of paid annual leave per leave year. This applies to every category of worker, including full-time, part-time, temporary, and casual employees.
Key points for employers:
If you need help drafting or reviewing your annual leave policy, our HR Policies and Procedures service can ensure your documentation is fully compliant.
Irish law provides three methods for calculating annual leave entitlement. Employers must apply whichever method gives the employee the greatest entitlement, subject to a maximum of 4 working weeks.
| Method | How It Works | Best For |
|---|---|---|
| Method 1: 1,365 Hours | If an employee has worked at least 1,365 hours in the leave year, they get the full 4 working weeks. Cannot be used if the employee changed employment during the leave year. | Full-time employees with the same employer all year |
| Method 2: 1/3 of a Working Week | The employee earns 1/3 of a working week for each calendar month in which they have worked at least 117 hours. For a 5-day worker, this is approximately 1.67 days per month (20 days over 12 months). | Employees who work consistently each month |
| Method 3: 8% of Hours Worked | Calculate 8% of all hours worked in the leave year, capped at 4 working weeks. | Part-time, irregular, or casual workers |
When calculating hours worked, you must include time spent on annual leave, certified sick leave, maternity leave, paternity leave, parental leave, parent’s leave, adoptive leave, force majeure leave, and the first 13 weeks of carer’s leave.
If an employee has worked for at least 8 months, they are entitled to an unbroken period of 2 weeks’ annual leave.
Part-time employees have the same right to annual leave as full-time workers. Their holiday entitlement is most commonly calculated using Method 3 (8% of hours worked), which ensures a fair, pro-rata allocation.
For example, an employee who works 20 hours per week for 48 weeks has worked 960 hours. Their annual leave entitlement would be 8% of 960 = 76.8 hours (approximately 9.6 days based on an 8-hour day).
If an employee works full-time for part of the year and part-time for the remainder, the leave for each period should be calculated separately. For guidance on managing part-time entitlements and payroll, explore our Payroll Services. All part-time employees must also be paid at least the applicable minimum wage rate.
A common point of confusion is the relationship between annual leave and public holidays in Ireland. These are separate entitlements under Irish law.
Ireland has 10 public holidays each year. On a public holiday, an employee is entitled to one of the following (at the employer’s discretion):
Public holidays are not deducted from an employee’s annual leave entitlement. If a public holiday falls during annual leave, that day does not count as annual leave.
Statutory annual leave should be taken within the leave year in which it is earned. With the employee’s consent, it can be carried over and taken within the first 6 months of the following leave year.
It is unlawful to pay an employee in lieu of their statutory annual leave, except on termination of employment. You cannot “buy back” unused leave. Employers should actively encourage staff to use their leave throughout the year, as allowing large balances to accumulate creates legal risk and a wellbeing concern.
When an employee resigns or is given notice, the question of annual leave during the notice period frequently arises:
Disputes about annual leave during notice periods can be complex, especially when combined with redundancy processes. Our Employment Advice team can help you navigate these situations.
The interaction between annual leave and sick leave is one of the most frequently queried areas. With the introduction of statutory sick pay in Ireland, understanding how these entitlements interact is more important than ever.
Employees continue to build up their statutory annual leave entitlement while on certified sick leave, regardless of how long the absence lasts.
If an employee becomes ill while on annual leave, those days should not count as annual leave, provided the employee obtains a medical certificate. The leave days are preserved for use later.
An employee can move from sick leave to annual leave, provided they have been certified fit to return. The sick leave period must formally end before annual leave begins, which matters for record-keeping and statutory sick pay calculations.
Where an employee is on long-term sick leave and cannot take their leave, the accrued leave can be carried over for up to 15 months after the end of the leave year. This was introduced by an amendment to the Workplace Relations Act 2015.
If employment ends within this 15-month window and the leave could not be taken due to illness, the employer must make a payment in lieu.
Employees must be paid their normal weekly rate for annual leave, provided in advance. Holiday pay must comply with the Payment of Wages Act.
Holiday pay is the normal weekly pay for the last week worked before the leave begins. Regular bonuses and allowances should be included, but overtime is excluded.
For employees whose pay varies (commission, shift premiums, productivity bonuses), holiday pay is the average weekly earnings over the 13 weeks before the leave begins. Overtime is excluded.
The Organisation of Working Time Act 1997 requires employers to keep records of employees’ working hours and annual leave for at least 3 years. These must be available for inspection by a Workplace Relations Commission inspector. Records should include hours worked per day and per week, leave granted with dates, and any payments made for annual leave.
Using HR software can simplify record-keeping and reduce compliance gaps.
Employers have the right to determine when leave is taken, but must have regard to the employee’s need for rest and recreation, consider family responsibilities, and consult at least one month before the leave is due.
Employers are responsible for ensuring employees take their statutory entitlement. Failure to do so can result in a WRC complaint, with compensation of up to 2 years’ remuneration. For a complete review of your leave management, our HR Essentials team can conduct a compliance audit.
Full-time employees working a standard 5-day week are entitled to a minimum of 20 days (4 working weeks) of paid annual leave per year. For employees who work fewer days, the entitlement is 4 times their normal working week.
Yes, but the employer must ensure the employee can take their full entitlement within the leave year (or within 6 months of the following year). The employer must also consider family responsibilities and the need for rest when scheduling.
Yes. Employees continue to accrue their full statutory entitlement during maternity leave, paternity leave, parental leave, parent’s leave, adoptive leave, and force majeure leave. They also accrue leave during certified sick leave and the first 13 weeks of carer’s leave.
The employer must pay for any accrued but untaken leave. This is the only circumstance in which payment in lieu of statutory annual leave is permitted. For employees being made redundant, see our guide to redundancy entitlements in Ireland.
With the employee’s consent, it can be carried into the first 6 months of the next leave year. For employees on long-term certified sick leave, untaken leave can be carried over for up to 15 months.
No. Public holidays are a separate entitlement and are not counted as part of annual leave. If a public holiday falls during annual leave, that day is treated as a public holiday instead.
There is no statutory entitlement to bereavement leave in Ireland, so it depends on the employer’s policy. Paid compassionate leave should not be deducted from annual leave unless the contract specifically provides for this.
Managing annual leave correctly is a legal obligation and an opportunity to build trust and promote employee wellbeing. Getting it wrong can lead to costly WRC complaints and damage to your employer brand.
At PurpleTree, we help Irish employers stay compliant and confident. From drafting annual leave policies to managing complex cases involving sick leave, notice periods, and part-time entitlements, our experienced HR consultants are here to help. Contact our Employment Advice team today, or explore our Net Salary Calculator for quick payroll insights.
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