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.
Statutory Annual Leave Entitlement in Ireland
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:
- A “working week” means the number of days the employee usually works. For someone on a 3-day week, their entitlement is 4 x 3 = 12 days, not 20.
- The statutory leave year runs from 1 April to 31 March. The current leave year runs from 1 April 2026 to 31 March 2027. Many employers use the calendar year (January to December) instead, which is acceptable provided the statutory minimum is met.
- Employers may offer more than the statutory minimum through the contract of employment, but they can never offer less.
If you need help drafting or reviewing your annual leave policy, our HR Policies and Procedures service can ensure your documentation is fully compliant.
Three Methods of Calculating Annual Leave
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. Each of these family-leave types carries its own notice and record-keeping obligations; our guides to paternity leave employer mistakes and parental leave employer mistakes cover the errors that most often end up at the WRC.
If an employee has worked for at least 8 months, they are entitled to an unbroken period of 2 weeks’ annual leave.
Part-Time Employee Entitlements
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.
Annual Leave and Public Holidays
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):
- A paid day off on the public holiday
- A paid day off within a month of the public holiday
- An additional day of annual leave
- An additional day’s pay
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. Applying these rules correctly on every pay run is exactly what our outsourced payroll for leave and public-holiday pay is built to handle.
Carrying Over 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.
Annual Leave During Notice Period
When an employee resigns or is given notice, the question of annual leave during the notice period frequently arises:
- An employee continues to accrue annual leave during their notice period.
- If the employee has accrued but untaken leave at termination, the employer must pay in lieu.
- An employer can require an employee to take outstanding leave during the notice period, provided reasonable notice is given.
- If the employee requests leave during their notice period, the employer can accept or refuse as at any other time.
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.
Annual Leave and Sick Leave
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.
Accrual During Sick Leave
Employees continue to build up their statutory annual leave entitlement while on certified sick leave, regardless of how long the absence lasts.
Falling Sick During Annual Leave
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.
Moving from Sick Leave to Annual Leave
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.
Carrying Over Leave Due to Long-Term Illness
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 section 86 of the Workplace Relations Act 2015, which amended the Organisation of Working Time Act 1997.
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.
Pay During Annual Leave
Employees must be paid their normal weekly rate for annual leave, provided in advance. Holiday pay must comply with the Payment of Wages Act.
Fixed Salary Employees
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.
Variable Pay Employees
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.
Employer Obligations
Record Keeping
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.
Granting Leave
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.
Ensuring Leave Is Taken
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.
Get Expert HR Support
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 consultants deliver outsourced HR for Irish employers that keeps you covered. Contact our Employment Advice team today, or explore our Net Salary Calculator for quick payroll insights.
Related Employer Resources
Explore more of our guides to Irish employment law and employer obligations:
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