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Can you cancel an employee’s prebooked holiday?

Malcolm Gregory provides some dos and don’ts for employers who might need workers to change their plans at the 11th hour!!

In most organisations, employees take holiday by booking it well in advance and in consultation with colleagues and managers. This enables appropriate workforce planning and ensures everything runs smoothly. That said, key project overruns, other unexpectedly urgent work or finding that everyone wants to take time off to watch the Olympics can cause serious resourcing issues.

The legal position

There are two types of holiday entitlement: the minimum 5.6 weeks’ statutory paid leave per year under the Working Time Regulations (WTR) and any additional contractual holiday.

The WTR require an employee to give notice of at least twice the amount of time they want to take off (for example, giving 10 days’ notice for a request for a five-day holiday). The employer can refuse the request by serving a counter notice of a similar length.

No matter the circumstances, an employer should not refuse or cancel holiday with the effect that an employee doesn’t have enough time left in the holiday year to take their WTR minimum.

If the employer needs to cancel WTR holiday that has already been approved, the employee has to be given notice that is at least twice the length of the holiday. So, if an employee has booked a week off, at least two weeks’ notice of cancellation has to be given. For contractual holiday, the position may be different. The employment contract and any related policy should be reviewed to see what rules apply.

It can be confusing to try to differentiate between WTR and contractual holiday, which is why many employers use the employment contract to amend the WTR provisions, bringing the WTR and contractual holiday rules into line.

While there is scope to cancel holiday, care should be exercised. Employees may have travel plans that would attract a cancellation charge and there is no doubt that a last-minute change of plans is likely to be unwelcome.

Complaints

If an employee is unhappy with their holiday being cancelled, they may raise it informally or use the grievance procedure to complain. Cancellation of holiday – even if permitted under the contract – without a good business reason could lead to the employee suggesting the employer has breached the implied contractual term of trust and confidence. For certain employees, this could mean they resign, claiming constructive unfair dismissal and breach of contract. Claims of direct or indirect discrimination could be brought in certain circumstances.

Best practice

To avoid claims and issues, good communication and clear policies are key. As soon as you know that a holiday needs to be cancelled, inform the employees affected to give them as much time as possible to adjust their plans. Be transparent about the reasons for the cancellation – honesty helps maintain trust.

Offering alternatives can also soften the blow. If possible, suggest alternative holiday dates or provide compensation. Apply holiday cancellation policies consistently to help avoid claims of unfair treatment or discrimination. If you can’t avoid a complaint, deal with it promptly and fairly following published procedures.

There are occasions that present unique challenges and opportunities, such as accommodating employee requests during the school summer holidays when significant events such as the Olympics are running.

Acas recommends that employers are more flexible with staff time off during the Olympics. This could include allowing employees to start later or finish earlier, or even permitting them to watch events during work hours as long as it doesn’t affect productivity.

Ensure your policies regarding holiday cancellations, time off and flexible working are clearly communicated to all employees. This helps to manage expectations and reduce potential conflicts. Remind employees that standard sickness and attendance policies remain in effect during the Olympics.

Events such as the Olympics can be an opportunity to boost employee morale and engagement. Consider organising viewing parties or allowing employees to watch events together during breaks. Encourage team-building activities related to the Olympics, such as office competitions or themed events.

By considering these factors, employers can manage holiday cancellations and time-off requests in a way that supports both business needs and employee satisfaction.

Malcolm Gregory is a consultant in the employment team at RWK Goodman