Annual Leave
Understanding Annual Leave Entitlements in Ireland
Annual leave is one of the most common employment entitlements in Ireland. Ensuring your business complies with annual leave legislation is not just about complying with the law, it’s about fostering employee wellbeing, maintaining morale, and building a positive workplace culture.
Annual leave entitlements in Ireland are governed by the Organisation of Working Time Act 1997. Under this legislation, employees are entitled to paid annual leave which accrues based on the amount of work completed during the leave year
How Annual Leave is Calculated:
Annual leave is calculated in line with Part III of the Organisation of Working Time Act, 1997 by one of the following methods;
- 4 working weeks of annual leave is granted where at least 1,365 hours have been worked i.e. full-time employees are usually entitled to 20 days of annual paid leave for every full calendar year worked
- Or 1/3 of an average working week where the employee works at least 117 hours in a calendar month i.e. 1.66 days
- Or 8% of the total hours worked where less than 117 hours is worked in a calendar month
In any year of commencement or termination of employment with a company, holiday entitlement is calculated on a pro rata basis for completed months of employment. Individual leave entitlements may be affected by periods of short time or lay off etc.
Public Holidays:
In addition to annual leave, employees are entitled to 10 public holidays in Ireland each year;
- New Year’s Day (January 1st)
- First Monday in February, or 1 February if the date falls on a Friday
- St. Patrick’s Day (March 17th)
- Easter Monday
- First Monday in May – May Day
- First Monday in June
- First Monday in August
- Last Monday in October
- Christmas Day (December 25th)
- St. Stephens Day (December 26th)
Depending on the nature of the business, an employee may receive the day off on full pay, an additional day’s pay, or an alternative day off. Employers must ensure that public holiday entitlements are managed separately from annual leave balances.
Managing Annual Leave Requests:
Employers have discretion when it comes to scheduling annual leave, but should take the following into account:
- The employee’s needs to take leave for rest and recreation.
- The requirements of the business.
- The need to ensure employees can use their leave entitlement within the leave year.
While employers can refuse specific dates due to operational needs, they cannot deny employees their statutory minimum entitlement. Best practice is to have a clear annual leave policy that outlines how requests are made, approval timelines, and any restrictions.
Carryover of Annual Leave:
Annual leave should normally be taken within the leave year. However, if an employee is unable to take their leave due to sickness, statutory leave (such as maternity leave or parental leave) or other exceptional circumstances, a company should have a policy in place to allow for annual leave carryover, this must be approved by management in advance of leave being carried over.
Compliance:
Non-compliance with annual leave regulations can lead to complaints to the Workplace Relations Commission (WRC) and potential penalties. More importantly, it can damage employee trust and engagement.
By proactively managing annual leave and communicating entitlements clearly, employers not only stay compliant but also promote a healthier and more productive workforce.
Parental Leave
Understanding Parental Leave in Ireland
Parental leave plays a key role in supporting working parents. In Ireland, Parental Leave gives eligible employees the right to take unpaid time off work to care for their child, helping families manage childcare and family responsibilities during crucial stages of a child’s life.
What is Parental Leave:
Under the Parental Leave Acts 1998–2019, employees who are parents, adoptive parents or who act in loco parentis (in place of a parent) are entitled to 26 weeks of unpaid leave for each eligible child.
This leave is designed to help parents spend time with their children and manage care responsibilities.
Eligibility Criteria:
To qualify for parental leave, an employee must:
- Have at least one year’s continuous service with their employer.
- Take the leave before the child reaches 12 years of age.
- The age limit extends to 16 years if the child has a disability or long-term illness.
If an employee child is very near the age limit and has been working with their employer for more than three months (but less than one year), they can take ‘pro-rata parental leave’.
How Can Parental Leave Be Taken:
Parental leave offers flexibility in how it can be taken, depending on both the employee’s needs and the employer’s agreement. It can be:
- Taken as a single 26-week block or;
- Taken in smaller blocks or days, provided each block lasts at least six weeks, unless both parties agree to a more flexible arrangement.
Employers and employees are encouraged to discuss and agree on how leave will be taken to ensure minimal disruption to business operations.
Notice/Postponing Parental Leave:
Employees must give their employer at least six weeks’ written notice before taking parental leave. This notice should include:
- The start date and duration of the leave.
- The intended way the leave will be taken (e.g., in one block or split periods).
Employers can postpone a period of parental leave for up to six months, if granting the leave would have a substantial adverse effect on the operation of the organisation.
Any postponement must be communicated in writing, with clear reasons, and should not disadvantage the employee.
Employee Rights During Parental Leave:
While on parental leave, employees are not entitled to pay or PRSI contributions from their employer. However, their employment rights are protected. This mean that:
- The employee retains all rights to return to the same job (or an equivalent one if that’s not reasonably practicable).
- Annual Leave and Public Holidays continue to accrue during Parental Leave.
- Employees are protected from penalisation or unfair treatment for exercising their right to take parental leave.
Best Practice for Employers:
Employers should:
- Have a clear Parental Leave policy in their employee handbook.
- Ensure all requests are handled fair and consistently.
- Keep accurate records of Parental Leave.
- Communicate openly and supportively with employees to manage scheduling and workload planning.
Parent’s Leave
Understanding Parent’s Leave in Ireland
What is Parent’s Leave:
Parent’s leave is a statutory leave entitlement in Ireland that aims to let working parents spend more time with their child or adopted child during the first 2 years of a child’s life, or in the case of adoption, within 2 years of the placement of the child with the family. Each parent is entitled to 9 weeks paid parent’s leave for a child born or adopted on or after 1st November 2019 in accordance with the Parent’s Leave and Benefit Act 2019.
Eligibility:
You must meet certain criteria to be eligible to take parent’s leave;
- Be a relevant parent
- Take the leave during the first 2 years of a child’s life, or in the case of adoption, within 2 years of the placement of the child with the family.
- Give at least 6 weeks’ advance notice to your Company
Who Can Take Parent’s Leave:
- A parent of the child.
- A spouse, civil partner or cohabitant of the parent of the child.
- A parent of a donor-conceived child as provided for under section 5 of the Children and Family Relationships Act 2015.
- The adopting parent or parents of a child.
- The spouse, civil partner or spouse of the adopting parent of the child (if the parents
have not adopted jointly). - Each member of a married couple of the same sex, a couple that are civil partners of each other, or a cohabiting couple of the same sex.
Pay & Benefit:
If an employee has sufficient PRSI contributions, they will get a weekly Parent’s benefit. This is paid by the Department of Employment and Social Protection (DEASP). The relevant parent must have a Public Services Card to apply for Parent’s Leave Benefit. If the relevant parent does not already have a Public Services Card, he/she can make an appointment to get one at www.mywelfare.ie. The Company will complete the employer’s section of the form when it has been completed by the employee.
Points to note;
- Annual leave will continue to accrue as normal during Parent’s leave.
- Employees to any public holidays that occur during parent’s leave.
- Employees can get credited PRSI contributions while on parent’s leave.
Notice & Employer Obligations:
Employees should give at least six weeks’ notice before taking Parents’ Leave. During the leave, their job is protected, and they are entitled to return to the same or a similar role afterward. Employers should ensure they do not penalise employees for taking this leave.
Postponement of Parent’s Leave:
There are certain circumstances in which Parent’s Leave may be postponed to support both employee needs and business continuity. The Company may defer leave where its timing would significantly impact operations for example, due to seasonal workload, unavailability of cover, the nature of the employee’s duties, or multiple colleagues being on leave simultaneously. Leave may also be postponed in cases such as premature or delayed births, postponed adoption placements, the illness of the parent, or the hospitalisation of the child. In all cases, employees should communicate promptly with the Company, providing relevant documentation where required. Any postponed leave must generally be taken within specific timeframes following the initial postponement or relevant event.
Need HR Advice or Support?
If you would like tailored guidance on how Budget 2026 impacts your organisation’s pay structures, payroll compliance, or HR strategy, please contact your HRP Group consultant for further information on this or any other HR issues you wish to discuss.
HRP Group continues to support employers across Ireland in navigating change, maintaining compliance, and building strong, sustainable workplaces.
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