According to the Trade Union Congress (TUC), over one million workers in the UK miss out on paid annual leave each year – costing them more than £2 billion in unclaimed holiday pay. This staggering figure not only reflects the risk of employee burnout, but also exposes the systemic gaps in how organisations approach leave management – particularly in sectors where shift work is the norm.
Shift-based industries like retail, hospitality, and healthcare – where workers often make up the majority of the workforce – face a unique set of challenges when it comes to leave management. The variability of hours, unpredictable schedules, and high volumes of casual or zero-hour contracts make it difficult to calculate entitlements and ensure coverage when team members take time off.
Yet leave isn’t a nice-to-have; it’s a business-critical necessity. Mishandled, it disrupts operations, frustrates employees, and puts companies at legal and reputational risk. As the UK gears up for incoming changes under the Employment Rights Bill, which will grant greater protections around working hours and shift cancellations, shift-based businesses can no longer afford to rely on outdated or manual leave management systems.
The complexity of leave in a shift-driven world
Unlike salaried, office-based roles, leave entitlements for shift workers are harder to calculate. Under the Working Time Regulations, holiday entitlement is based on hours worked — but when those hours fluctuate from week to week, as they do for millions of shift workers, calculating accurate leave balances becomes a minefield for both employers and employees.
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For workers on zero-hour contracts or irregular schedules, this confusion is compounded. Without transparent policies and streamlined processes, it becomes unclear how much leave they’ve earned, how to request it, or even whether they’re entitled to it — fuelling dissatisfaction and disengagement.
Using tech to take the guesswork out of leave management
This is where technology plays a critical role. For shift-based businesses, platforms like Deputy are purpose-built to manage the complexity of variable work patterns. By digitising leave requests and automating entitlements, Deputy ensures every team member – regardless of contract type – has clarity on their leave balances and can request time off with ease.
For managers, the ability to approve leave, plan ahead, and automatically adjust schedules ensures operational continuity even during busy periods. AI-driven forecasting tools can help predict staffing needs based on historic trends, making it easier to plan coverage while still allowing employees the rest they deserve.
Crucially, tech also helps businesses stay compliant. With built-in alerts that flag potential breaches of working time rules, employers can ensure staff are scheduled in line with the law – especially as regulations evolve in the lead-up to 2026.
Rethinking leave management as a competitive advantage
Leave management is often seen as an admin headache — but for shift-based businesses, it can become a competitive differentiator. By creating clear, written policies, training managers to handle leave fairly, and adopting digital tools that give staff autonomy and visibility, organisations can build more transparent, trust-based workplaces.
With younger generations increasingly prioritising flexibility, and legal pressure mounting for fairer treatment of shift workers, the way businesses approach leave will become a marker of how seriously they take employee wellbeing.
Ultimately, effective leave management is about balance — meeting the needs of your workforce while keeping operations running smoothly. With the right systems in place, it’s possible to support staff wellbeing, remain compliant, and unlock the performance benefits that come from a more rested, engaged workforce.
Sejal has over 20 years of experience as a human resource and corporate innovation executive in the technology, sustainable energy/clean tech, and healthcare sectors.
She has extensive expertise and insights on building high-performance teams, with her role as Deputy’s Chief People Officer focused on advancing their global people strategy, enhancing the employee experience, and supporting the company’s international expansion.
