Full annual leave unclaimed by 65% of employees

A quarter (26%) of employees were worried that taking holiday would reflect badly on their performance

Two thirds (65%) of workers do not use their full annual leave allowance, research by Breathe, a HR platform for SMEs, has found.

The survey of 1,000 UK employees showed that 17% of employees had an average of five or more unused holidays per year. These findings were published last Thursday  (8 August).

Not taking annual leave can negatively affect employers and employees, explained Kylie Bennett, vice president of mental health clinical services and managing director of e-hub health at wellbeing and employee engagement platform Dialogue. 

She told HR magazine: “Despite the importance of annual leave, many workers fail to utilise their full leave allowance, leading to burnout, decreased job satisfaction, and lower overall productivity. 

“This issue impacts individuals, businesses, and the broader economy, highlighting the need for a shift in how we view and use annual leave.”

Breathe also found that people under the age of 24 were the most likely to not use their full annual leave allowance, while 46% of 25-34-year-olds reported that their mental health suffered if they missed out on time off. 


Read more: How is holiday pay changing?


Tanya Channing, chief people officer at sales and management software Pipedrive, suggested that employers should create a culture where employees feel safe to take annual leave.

Speaking to HR magazine, she said: “Employers have a responsibility to check in on staff through line report systems, and ensure there are accessible wellbeing resources. 

“This means there should be a clear holiday process in place and a working culture where people don’t feel guilty for taking annual leave, or otherwise feel the need to stockpile it for any reason.”

Around four in 10 employees (41%) reported that staff shortages were the reason they did not take their full annual leave. A third (33%) cited a desire to reclaim or sell back their holiday as the reason, and 14% said that their company did not encourage taking time off.

Meanwhile 26% of respondents were worried that taking holiday would reflect badly on their performance. 

Employers should ensure that workloads can be covered while employees are on leave, suggested Tessa Boshoff, vice president of HR at language learning provider Wall Street English.

“Creating a leave-positive culture starts with trust. Ensure that taking leave doesn’t result in work piling up or missed opportunities,” she told HR magazine.

“Cross-train team members so responsibilities can be covered when someone is away. Implement good handover processes and use collaborative tools to maintain workflow during absences.”


Read more: Who should get annual leave over Christmas?


Boshoff added that leaders should lead the way in demonstrating it is acceptable to take annual leave.

She commented: “To encourage full use of leave, employers should lead by example. When leadership visibly takes time off, it sets a positive tone. Implement a clear leave policy and regularly communicate about it.

"While there may be times when businesses require flexibility, such as travelling for work over the weekend, ensure that extra working days are compensated with time in lieu.”

Employees should also be given flexible options for taking annual leave, according to Bennett.

“Offering flexibility in how leave can be taken can accommodate varying employee needs and preferences, especially as we have an increasingly multigenerational workforce,” she noted.

Breathe commissioned Pollfish to survey 1,000 employees between the ages of 18 and 65 in the UK between 25 and 26 July 2024.