• Unused annual leave could cost thousands for businesses

        • As employees return to work, UK businesses are likely to face a backlog of annual leave requests that could cost thousands of pounds.  

          By collecting data and analysing the average monthly salary at a baseline at £2,214 and at least 50 per cent of employee annual leave owed, Instant Offices has calculated how much it would cost for companies of different sizes to pay staff for a minimum of two weeks of annual leave.

          A business would face operational failure by honouring too many leave requests, especially in cases where employees still have up to 80 per cent of their annual leave remaining for the year. At the same time, it’s not viable to pay staff out for those days instead.

          Research shows 99 per cent of businesses in the UK are SME’s, made up of between 1 – 250 employees. Those with full-time workers are required to provide up to 20 days of paid holiday a year, excluding bank holidays.

          Heading into the second half of 2020 and lockdown restrictions ease, the risk of too many employees requesting annual leave at the same time will pose a significant challenge for most businesses. For a small company, paying out 10 employees for only half of their annual leave days could set the business back more than £10,000, while an SME of 250 employees faces up to £255,500 in costs.

          Lucinda Pullinger, Global Head of HR at The Instant Group said, “in addition to the financial challenges, there is a huge wellbeing element here too. Just because we are unable to take the destination holidays we hope for, it doesn’t mean we don’t need a change of pace. The need for a break from work has never been higher. The pressures of Covid-19 on some people are extreme, and protecting mental health is key right now. Taking a break, even if that break is at home under lockdown, is still beneficial, and employers should encourage employees to take their holiday to protect their wellbeing, not just for financial reasons.”

          As the working population in the UK return to work, this logistical nightmare has been raised by businesses as one of their key concerns, with the government looking at several ways to assist the 5.9 million businesses who will be affected.

          This means many businesses still face pay-out and carry over challenges, especially if employees leave the company before they have had a chance to take their allocated time off.

        • Stay up to date - Click here and register for FREE Channel Info online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the Channel Info app

        • Related Articles

        • Legacy print infrastructure is major barrier to digital transformation

          Legacy print infrastructure is major barrier to digital transformation

          Wednesday 16th Sep 2020
          Lexmark recently commissioned IDC to conduct a study that uncovers dated print infrastructures as an obstacle to digital transformation. Despite three in five enterprises recognising that lingering print infrastructures are a significant barrier to s...Read More...
          SolarWinds finds IT pros gained confidence and new skills amidst pandemic

          SolarWinds finds IT pros gained confidence and new skills amidst pandemic

          Monday 14th Sep 2020
          SolarWinds, a provider of IT management software, has announced the findings from its IT Pro Day 2020 survey: You Were Built for This. The survey results explore IT professionals’ journeys throughout COVID-19, how their responsib...Read More...
          1/3 UK small businesses don’t provide cybersecurity training

          1/3 UK small businesses don’t provide cybersecurity training

          Tuesday 8th Sep 2020
          Sharp UK has released new findings identifying cybersecurity training as a cause for concern amongst UK businesses, as a third of SMB owners admit to providing no training or resources for employees. Despite this, two-thirds of those surveyed sa...Read More...
                • About Us

                  Channel Info is the leading source of business news and information for the office dealer and reseller market. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, supplements, website, digital editions, apps, newsletters and bespoke communications with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the team behind Channel Info has over 60 years experience collectively in the office products, furniture, equipment and technology markets Channel Info continues to develop and adapt in order to meet the changing information needs of its readers.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue