Currently, almost all workers are entitled to 28 days holiday including bank holidays each year. However, most of this entitlement cannot be carried between leave years, meaning workers lose their holiday if they do not take it.

There is also an obligation on employers to ensure their workers take their statutory entitlement in any one year – failure to do so could result in a financial penalty.

The changes to the regulations will allow up to four weeks of unused leave to be carried into the next two  leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.