UK businesses could pay up to £250,000 of annual leave post-COVID-19
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, says “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.