With the ongoing Covid crisis many employers will face the real possibility of staff shortages as employees isolate to recover from Covid.
Isolation
Employers have the right to cancel an employee’s holidays even if the time off has been previously approved by the employer. The employer must however, ensure there is sufficient notice provided to the employee. The employer must explain the business reason and discuss the right of the employee to book the holiday at a future period in the same holiday year. For example, the reason may be due to shortages in staff due to Covid isolation, a new business deadline or substantial changes to the business. Where feasible the employer should look at possible alternatives to cancellation as the employee is legally entitled to take time off in the current holiday year. Employers should consider that such a decision may bring disharmony in the workplace. Some employees may have booked overseas travel and may not be able to cancel their holiday.
Constructive Dismissal
Employers who do not think through this decision with due diligence and do not provide good business reasons to the employee risk a claim for constructive dismissal. Employers should note they will not be allowed to cancel the employees annual leave if therefore the employee cannot exercise the right to the annual leave before the end of the same holiday year.
The employer must give sufficient notice to an employee to cancel their booked annual leave and provide the business reason for the cancellation. The employer must provide the employee the same length of notice as the period of the of annual leave booked by the employee. The notice must therefore be served before the annual leave is taken and not if the employee is already off on leave. If on the other hand the employee wishes to cancel their booked annual leave, they would need to provide the same amount of notice as the leave they want to cancel. Employers should be mindful of unforeseen circumstances and show some flexibility here for example, an employee’s child becomes sick or there is a family bereavement. Where the reasons are not exceptional the employer does not have to agree to the request if arrangement for holiday cover have been made.
Employer and HR practitioners should consider implementing a holiday cancellation policy to address this situation.
This article is only for guidance only. Please contact the Quest advice service if you require specific advice about a situation or wish to update your HR policies on 01455 852028.
