In March, the government announced plans to allow employees who have not taken all of their statutory annual leave entitlement due to COVID-19, to carry it over into the next 2 holiday years. 

These new regulations will allow up to 4 weeks of unused leave to be carried into the next 2 holiday years, easing the requirements on businesses to ensure that employees take their statutory amount of annual leave in any one holiday year.

In e-days you can create a two-year ‘waterfall’ carryover policy that will expire at the end of the 2nd holiday year. This setup uses two entitlement elements with the first ‘flowing’ into the second which will then expire. 

To be able to set this up, your system will need to be in the Advanced Entitlement mode, to enable this please contact the Support Team by emailing support@e-days.com  or phoning 03333003403.

Please find the step-by-step guide on creating a two-year waterfall carryover policy:

  • Navigate to Admin tools > Admin panel > Global > Entitlement setup
  • Click Advanced to show all entitlement pots
  • Search for the entitlement pot e.g. Holiday and click Elements
  • Click the + Add new button

The first element to create will be the element that expires

  • Name the element e.g. Expires This Year
  • Click the Advanced button and complete the fields as required ensuring that Accrue on rollover is set to No



  • In the Carryover/transfer and expiry section, leave manual and automatic carryover fields blank
  • In the Carryover/transfer expires field, select Specific Date and enter the required expiry date below


  • Click the Save button

The next element to create is the one to carryover into the Expires This Year’ element

  • Navigate to Admin tools > Admin panel > Global > Entitlement setup
  • Click Advanced to show all entitlement pots
  • Search for the entitlement pot e.g. Holiday and click Elements
  • Click the + Add new button

The first element to create will be the element that expires

  • Name the element e.g. Expires Next Year
  • Click the Advanced button and complete the fields as required


  • In the Carryover/transfer and expiry section, leave the manual carryover field blank
  • In the automatic carryover field, select the element Expires This Year
  • In the Carryover/transfer expires field, select Never


  • Click Save

The final step is to allow manual carryover/transfer into the Expires Next Year pot from the annual entitlement pot.

  • Navigate to Admin tools > Admin panel > Global > Entitlement setup
  • Click Advanced to show all entitlement pots
  • Search for the entitlement pot e.g. Holiday and click Elements
  • Click Edit button next to Annual Entitlement
  • In the Allow manual carryover/transfer field, select Expires Next Year
  • Set the maximum days as required
  • Click the Save button