What happens to unused annual leave at the end of the year?

Can one carry over their paid days into the following year?

It is crucial that you check what your company’s policy looks like, as your employer can deny your holiday if you’ve used up all your days.

Typically, if you haven’t used your paid days off by the end of the year, you will lose them.

Unlike when quitting your job, you won’t be entitled to monetary compensation for your unused holidays. 

However, there are workarounds.

If you haven’t used your holidays by the end of the year, you are eligible to carry them over under certain circumstances.

A standard carry over by mutual agreement is eligible under section 20 of the Organisation of Working Time Act 1997, which allows employees to carry over unused vacation days up to 6 months after if agreed upon with the employer.

Other reasons you can carry your days off after the end of the year include:

• Sick leave
• Statutory leave, such as maternity/paternity leave
• your employer didn't encourage you to take your holiday
• your employer didn't warn you that you'll lose your holiday if you don't use it

However, there are conditions under which you can carry over your holidays, even with these prior exceptions.

Check your contract with your employer, as it may reveal more information on your paid leave and what you are entitled to. 

Irish laws are imposed on employers to protect employees to take vacation days.

However this means employees must also give a proper notice to their employer prior to taking a paid leave. If you are planning a longer vacation, make sur to give them a timely notice.

Unfortunately, Irish laws for paid leave aren’t as good as in the Netherlands. 

Their system allows for a 5-year PTO banking system, meaning you can add your unused paid holidays into the next 5 years. 

Nonetheless, we still gain a lot for the current annual leave laws here in Ireland, which are largely based on EU rules.