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
Understanding annual leave in Ireland is essential for every employer. Whether you manage a team of five or five hundred, your obligations under Irish employment law are the same: you must provide your employees with their full statutory holiday entitlement and maintain accurate records. This comprehensive 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.
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.
A few key points employers should note:
If you need help drafting or reviewing your annual leave policy, our HR Policies and Procedures service can ensure your documentation is fully compliant with Irish employment law.
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 are entitled to the full 4 working weeks. Cannot be used if the employee changed employment during the leave year. | Full-time employees who have been 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 equates to 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 for any of these methods, 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 take an unbroken period of 2 weeks’ annual leave.
Part-time employees have the same right to annual leave as full-time workers. In practice, 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 in a year 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 expert 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 for their age band.
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, including the St. Brigid’s Day holiday introduced in 2023. 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 an employee’s annual leave, that day does not count as a day of annual leave. For a full list of dates and employer obligations, see our complete guide to public holidays in Ireland.
Statutory annual leave should be taken within the leave year in which it is earned. However, with the employee’s consent, it can be carried over and taken within the first 6 months of the following leave year.
Any carry-over beyond 6 months requires mutual agreement between employer and employee. Employers should note that it is unlawful to pay an employee in lieu of their statutory annual leave entitlement, except on termination of employment. This means you cannot simply “buy back” unused leave.
From a practical standpoint, employers should actively encourage staff to use their annual leave throughout the year. Allowing large balances to accumulate creates both a legal risk and a wellbeing concern.
When an employee resigns or is given notice of termination, the question of annual leave during the notice period frequently arises. The key rules are:
Disputes about annual leave during notice periods can be complex, especially when combined with redundancy processes. If you need tailored advice, our Employment Advice team can help you navigate the situation correctly.
The interaction between annual leave and sick leave is one of the most frequently queried areas of Irish employment law. With the introduction of statutory sick pay in Ireland, it is more important than ever for employers to understand how these entitlements interact.
Employees continue to build up their statutory annual leave entitlement while on certified sick leave. This is a legal requirement, regardless of how long the absence lasts.
If an employee becomes ill while on annual leave, those days should not be counted as annual leave, provided the employee obtains a medical certificate from their GP covering the days of illness. The employee should submit the certificate to the employer on their return to work, and the annual leave days are preserved for use at a later date.
A common question employers face is whether an employee can transition directly from sick leave to annual leave. The answer is yes, provided the employee has been certified fit to return to work. The employer should obtain confirmation that the sick leave period has ended before the annual leave begins. This distinction matters for record-keeping and for calculating statutory sick pay entitlements accurately.
Where an employee is on long-term sick leave and cannot take their annual leave, the accrued leave can be carried over for up to 15 months after the end of the leave year in which it was earned. This provision 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 of the untaken leave.
Employees must be paid their normal weekly rate for annual leave, and this pay must be provided in advance of taking the leave. This is often referred to as holiday pay. Holiday pay must comply with the Payment of Wages Act, which sets out rules on how and when employees must be paid.
For employees on a fixed salary, holiday pay is their normal weekly pay for the last week worked before the leave begins. Regular bonuses and allowances that are not related to specific output should be included, but overtime is excluded.
For employees whose pay varies from week to week (for example, due to commission, shift premiums, or productivity bonuses), holiday pay is calculated as the average weekly earnings over the 13 weeks immediately before the annual leave begins. Overtime is excluded from this calculation.
As an employer, you have a number of legal obligations when it comes to annual leave.
Under the Organisation of Working Time Act 1997, employers are required to keep detailed records of employees’ working hours and annual leave for a period of at least 3 years. These records must be available for inspection by a Workplace Relations Commission inspector.
Records should include:
Using HR software can simplify record-keeping and reduce the risk of compliance gaps.
Employers have the right to determine when annual leave is taken, but this discretion is not absolute. The Act requires employers to:
Employers are responsible for ensuring that employees take their statutory leave entitlement. Failure to do so can result in a complaint to the Workplace Relations Commission, which can award compensation of up to 2 years’ remuneration.
For a complete review of your leave management processes, our HR Essentials team can conduct a compliance audit and recommend improvements.
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 per week, the entitlement is 4 times their normal working week. For example, a 3-day-per-week worker receives 12 days.
Yes, an employer can refuse a specific leave request. However, the employer must ensure the employee can take their full statutory entitlement within the leave year (or within 6 months of the following year, with agreement). The employer must also consider the employee’s family responsibilities and need for rest and recreation when making scheduling decisions.
Yes. Employees continue to accrue their full statutory annual leave 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.
When employment ends, the employer must pay the employee for any accrued but untaken annual leave. This is the only circumstance in which payment in lieu of statutory annual leave is permitted. The payment should be calculated based on the employee’s normal weekly rate of pay. For employees being made redundant, see our guide to redundancy entitlements in Ireland for information on additional payments owed.
Statutory annual leave should be taken within the leave year. With the employee’s consent, it can be carried into the first 6 months of the next leave year. Further carry-over requires mutual agreement. For employees on long-term certified sick leave, untaken annual leave can be carried over for up to 15 months after the end of the year in which it was earned.
Yes, an employee can move from sick leave to annual leave, provided they have been certified fit to return to work. The sick leave period must formally end before annual leave begins. Employers should update their records to reflect the change in leave type, as this affects both statutory sick pay calculations and annual leave accrual tracking.
No. Public holidays are a separate entitlement under Irish law and are not counted as part of an employee’s annual leave. If a public holiday falls during a period of annual leave, that day is treated as a public holiday rather than a day of annual leave.
There is no statutory entitlement to bereavement leave in Ireland, so it depends on the employer’s policy. Where an employer grants paid compassionate leave, this should not be deducted from the employee’s annual leave entitlement unless the contract of employment specifically provides for this arrangement.
Managing annual leave correctly is a legal obligation, but it is also 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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