1. Introduction

Section 19 of the Organisation of Working Time Act 1997 confers a statutory right to paid annual leave on most employees. The leave entitlement is calculated by reference to time worked and accrues at four working weeks where the employee has worked at least 1,365 hours in the leave year.

This article considers the statutory framework, the calculation of leave entitlements, and the implications of recent European case law on the carry-over of leave and payment in lieu on termination.

2. Legislation and Case Law

Section 19(1) of the Organisation of Working Time Act 1997 provides three methods of calculating annual leave: (a) four working weeks where the employee has worked at least 1,365 hours; (b) one-third of a working week per month where the employee has worked at least 117 hours in that month; or (c) 8% of hours worked, subject to a maximum of four working weeks.

The Court of Justice in Schultz-Hoff v Deutsche Rentenversicherung Bund C-350/06 held that workers on long-term sick leave continue to accrue annual leave under Article 7 of the Working Time Directive 2003/88/EC.

In King v Sash Window Workshop C-214/16, the Court of Justice held that a worker incorrectly classified as self-employed and denied paid leave was entitled to carry forward the leave indefinitely and to be paid in lieu on termination.

Section 19(3) requires that the times at which annual leave is granted be determined by the employer having regard to work requirements and the need for the employee to reconcile work and family responsibilities. 

3. Decision

The WRC will examine whether the employee has been afforded the correct number of days, calculated under the appropriate methodology in Section 19(1). The applicable methodology depends on the pattern of work, with most full-time employees qualifying under sub-section (a).

Disputes commonly arise about whether time spent on sick leave, maternity leave or other forms of protected leave counts towards the accrual. Section 19 provides for a separate “leave year” basis with specific rules on carry-over.

Compensation under Section 27 of the 1997 Act may extend up to two years’ remuneration where appropriate, with the standard award reflecting the value of the leave and an additional element for breach.

4. Takeaway

Employers should maintain accurate records of annual leave accrued, taken and remaining for each employee. The Section 19 calculation should be applied correctly, particularly for part-time and variable-hours staff.

Employees should retain records of leave taken and review their leave statements at least annually. Where the employer fails to keep accurate records, the burden of proof effectively shifts to the employer under Section 25(4).

5. Further information

This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.

6. About Crushell & Co

Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.

We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.

Connect: @CrushellLaw or www.crushell.ie