Managing employee holidays and sickness absence can be surprisingly tricky. One person’s last-minute illness or overlapping holidays can throw a whole week off course – especially in a small business where every team member counts.
That’s why keeping clear, up-to-date records isn’t just good practice – it’s essential. With accurate tracking in place, you’re better equipped to plan workloads, manage resources and stay compliant with employment law. Without it, things can get messy, fast.
Why It Matters
Let’s face it: no one wants to dig through old emails or notebooks to figure out if someone has holiday left, or whether they were paid correctly while off sick. When records are accurate and accessible, decisions are quicker and fairer.
Keeping track of leave balances also helps prevent burnout. If an employee hasn’t taken their holidays, it may be a sign they’re overwhelmed. Likewise, noticing a pattern in sickness absences can be the first step in providing meaningful support.
It’s also a legal must. In the UK, workers are entitled to a minimum of 5.6 weeks’ paid holiday, and sick pay rules are subject to specific conditions. Failing to track or pay these entitlements correctly could land you in hot water.
What Can Go Wrong?
Many small businesses start out using spreadsheets or paper records. That can work for a while – but as your team grows or starts working remotely, these systems can start to crack.
Errors creep in. Leave overlaps are missed. Managers approve time off without checking balances. Or worse – someone comes back from sickness only to find their holiday hasn’t been updated properly.
Add in part-time hours, hybrid working, or staff carrying over unused leave, and things can quickly spiral. Without a clear picture, planning cover or approving time off becomes a guessing game.
Creating a Clear Policy
A good absence policy is your safety net. It helps everyone – employers and employees – understand their rights, responsibilities, and the steps to follow when requesting leave or calling in sick.
Your policy should explain:
- How holiday requests should be made (and how much notice is needed)
- What happens if more than one person wants the same days off
- Whether holiday can be carried over, and under what circumstances
- What to do in the event of sickness (including when a fit note is required)
- How sickness affects holiday entitlement
Importantly, your policy should be fair and consistent – taking into account the needs of the business, while supporting the wellbeing of your people.
According to ACAS guidance, employees continue to accrue holiday while off sick, and may even take paid holiday during a period of sickness, if agreed. Being clear on this upfront avoids confusion and makes things simpler for everyone.
Building a Better System
You don’t need to invest in complicated systems to get absence tracking right. But you do need a consistent, centralised approach. Whether that’s through a shared calendar, internal process, or basic digital tool, the aim is to ensure all leave and sickness is logged and visible.
For instance, when someone calls in sick, make sure there’s a quick process for recording it – ideally on the same day. Similarly, when someone requests holiday, ensure it goes through a clear approval process and is recorded straight away.
It’s also helpful to review your records regularly. Are people using their leave? Are there any trends in absence? Spotting patterns early can help you address problems before they escalate.
Talk to Your Team
Absence management shouldn’t feel like surveillance. When done well, it supports staff wellbeing and shows that the business values fairness and transparency.
Make sure your team knows what they’re entitled to and how to request leave. Encourage them to take their full holiday allowance. And if someone’s absence record changes suddenly, don’t jump to conclusions – check in and see how they’re doing.
When people understand the system, they’re more likely to use it properly. And when managers are consistent, the whole business benefits.
How The HR Dept Can Help
Keeping on top of time off might feel like just another admin task – but the impact it has on compliance, morale and efficiency is huge.
At The HR Dept, we work with SMEs to put the right systems and policies in place. Whether you need help drafting a sickness policy, calculating entitlements, or making sure your approach is legally sound, we’re here to support you.
We’ll also help you make sure your process is fair, respectful, and tailored to your business. No jargon, no one-size-fits-all – just practical advice, from people who understand the pressures of running a small business.
If you’re unsure whether your current approach is working – or want to improve your system – talk to The HR Dept. We’re here to help you stay compliant, stay organised, and keep your people supported.
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