How to manage annual leave requests around bank holidays

Bank holidays can be a bit of a balancing act for business owners. Your employees want time off, but you still need to keep things running. So, how do you handle annual leave requests fairly while keeping your business on track? Based on our  experience, here’s how to strike the right balance. 

1. Set Clear Annual Leave Rules 

If you haven’t already, now is the time to review your annual leave policy. Make sure it covers: 

• How requests should be made (e.g., notice period, approval process) 
• How leave is allocated during peak periods 
• Whether bank holidays are included in statutory leave entitlement 

Employees need to understand the rules upfront to avoid last-minute conflicts. If you don’t have a policy in place, it’s a recipe for confusion and frustration. (Need help? Check out our Annual Leave Policy -template.) 

2. First Come, First Served vs. Rotational System 

One of the fairest ways to handle requests is the first-come, first-served approach. This encourages employees to plan ahead. However, if certain employees always get bank holidays off while others miss out, a rotational system may be better. This way, leave is shared more equally over time. 

Whichever method you choose, communicate it clearly so employees know what to expect. 

3. Encourage Team Discussions 

Rather than making all the decisions yourself, encourage employees to talk amongst themselves. Some may be happy to swap or adjust their requests. A bit of flexibility can go a long way in keeping everyone happy. 

4. Plan for Bank Holiday Cover 

If you need cover on bank holidays, plan ahead by: 

• Asking for volunteers – some employees may prefer time off at a different time of year 
• Offering incentives – additional pay or time off in lieu (TOIL) can encourage flexibility 
• Using temporary employees– for businesses that need extra hands during busy holiday periods 

5. Be Fair and Consistent 

Nothing frustrates employees more than feeling like the system is unfair. Stick to your policy, avoid favouritism, and handle all requests in the same way. If you need to decline leave, explain the reason clearly and offer alternatives where possible. 

6. Consider Part-Time Workers 

If you have part-time staff, make sure you’re calculating their holiday entitlement fairly. Bank holidays shouldn’t automatically be given to full-time staff only. (Unsure how to do this? Check out our guide on calculating annual leave for part-time workers.) 

Managing leave requests around bank holidays can feel complex, requiring thoughtful consideration to accommodate everyone fairly. But with a clear policy and a fair approach, you’ll be guided to make the right decisions. 

Need help setting up an annual leave policy or calculating leave for part-time workers. We’ve got templates and guides to make it simple. We also have more leave policy resources available. Sign up for one of our great value plans at Dakota Blue Academy to ensure you are keeping your business relevant, safe and compliant in all areas of people management.