How to Manage Annual Leave Effectively

How to Manage Annual Leave Effectively

20 September 2022

Share this blog

Managing annual leave is a pain point for many SMEs. Who is responsible for calculating and tracking it? Who approves it and who decides how many employees can be on holiday at once? Scratch the surface and leave can be a lot more complicated than it might first appear. In this blog, we explore how to manage annual leave effectively.

How many days of Annual Leave are staff entitled to?

Most workers are entitled to a statutory minimum of 28 days of paid annual leave per year. Their contract of employment will provide full details and include information in relation to bank holidays and whether or not they are included in the statutory entitlement. If you employ part-time workers, workers on irregular hours, or casual workers, there are different calculations to apply. The government website provides a useful calculator if you are unsure.

How to manage Annual Leave?

First and foremost, as a business, you need to consider what is best for you and your team. It is worth having a basic process in place for how employees request annual leave, how it is approved, and where it is recorded. You could also include some specific information about how many of your team can be on leave at the same time. You could assign one dedicated person to receive and manage all requests. They could also go to team leaders or managers depending on the size and structure of your business.

Logging and recording Annual leave can be done in a number of ways. Some businesses use a hard copy diary stored on someone’s desk. Some have a huge wall planner and others will use spreadsheets. While there are likely to be valid reasons for each of these methods, they are all flawed in some way, shape, or form and can actually create more headaches than they solve.

Can HRX Software manage the process for me and my Business?

Without a doubt, HRX can make your annual leave process quicker, slicker, and less painful. HRX will automate your whole annual leave process so that it runs smoothly and you have full oversight. Employees can log in and request a holiday from their desktop, laptop, or mobile device. They can check and see if anyone else on the team already has those dates booked off. This can help to avoid conflicting requests and once submitted, their manager can approve or decline the request. HRX also shows an employee their annual leave entitlement balance so they know how many days they have available to take.

For managers, there is also the handy dashboard that shows who is on leave and if you have any pending requests. With our reporting feature, you can also track annual leave usage. This helps you to look after the well-being of staff by making sure that they are taking leave and don’t have a large amount left coming towards the end of the year which might then in turn create issues around workforce planning.

If you want the annual leave headache to be a thing of the past then contact us and sign up for our free 30-day trial!


Similar Blogs

hr audit blog

How to Prepare for an HR Audit: A SME Checklist

Running an SME means juggling multiple responsibilities, and HR is often one area that can get overlooked. Yet, an HR audit is a crucial way to check that your HR practices are effective, compliant, and aligned with your business goals. This guide will help SMEs business owners and managers to understand what an HR audit…
View Article

16 March 2026

welcome back post it note

Return to Work Meetings: What Employers Should Ask After Sickness Absence

Employee absence is an unavoidable reality in every workplace. Illness, injury and health conditions will occasionally prevent employees from attending work. For employers, how absence is managed can make a significant difference to employee wellbeing, productivity and workplace culture. According to CIPD data for 2025, UK employees were absent from work due to sickness for…
View Article

9 March 2026

employee offboarding checklist

An Employee Offboarding Checklist for SMEs

Employee departures are a normal part of running any business. Whether someone resigns, retires, or moves on to a new opportunity, how you manage the end of employment matters just as much as how you manage recruitment and onboarding. For SMEs, having a clear employee offboarding process helps protect the organisation, maintain professionalism, and ensure…
View Article

2 March 2026

Take it for a spin

It’s so easy to get started, join us on a quick demo and we’ll talk you through the system. We also provide free onboarding to get you started.

Call us on

01282 921000

Monday to Friday 9am - 5pm

30 days free No credit card required Quick & Easy

Book a demo

Contact Us
When is the best time to call