Every company must prepare and communicate the annual vacation schedule during the first quarter of the year. This is not just a formality – the purpose of the schedule is to ensure smooth work organisation and conscious, mutually considerate planning of employees’ vacation needs.
On one hand, the obligation to prepare the schedule arises from the Employment Contracts Act (Section 69 (2)); on the other hand, it helps avoid situations where several employees wish to take vacation at the same time, placing the company in organisational difficulties.
Sections 55 and 68 of the Act provide that every employee is entitled to at least 28 calendar days of annual paid leave per year, of which at least one part must last a minimum of 14 consecutive days. Annual leave must be used within the calendar year and can be divided only by mutual agreement. The employer has the right to refuse dividing the leave into parts shorter than seven days.
If an employee joins the company mid-year, they are entitled to annual leave in proportion to the time worked, and may start requesting leave after six months of employment. At the same time, nothing prevents the employer from granting leave earlier if work organisation allows it.
In addition to annual leave, employees are entitled to various additional types of leave (study leave, childcare days, adoptive parent’s leave, maternity leave, paternity leave, parental leave, care leave, etc.). Although employers are not required to include these in the schedule, doing so helps create a clearer overview for planning.
By 31 March, the vacation schedule must be completed, taking into account employees’ wishes that are reasonably compatible with the employer’s interests. It is important to emphasise that the right to determine the time of annual leave ultimately lies with the employer.
A rested employee doesn’t just do more – they work smarter.
Employee groups entitled to choose their vacation time
The law specifies that certain employees have the right under Section 69 (7) of the Act to choose their vacation period themselves. For these employees, the employer cannot determine the vacation time based on its own interests.
Employees entitled to take leave at a time of their choice:
- a woman immediately before and after maternity leave;
- a parent immediately after parental leave;
- a parent raising a child up to seven years of age;
- a parent raising a seven- to ten-year-old child – during the school holidays;
- a school-age minor – also during the school holidays.
These exceptions must be taken into account when preparing the vacation schedule. For example, if two employees with a statutory preferential right wish to take leave at the same time but are supposed to substitute for each other, and no compromise is reached, both must still be granted vacation at the time that suits them.
A wise leader knows vacation is not a cost, but an investment in a happy employee.
How to prepare and use the vacation schedule
The schedule must be completed no later than 31 March, taking into account employees’ wishes that are reasonably compatible with the employer’s interests.
The schedule should include:
- annual leave for all employees, including those on probation;
- unused leave carried over from the previous year;
- if possible, employees’ known requests for additional types of leave.
The schedule helps the employer avoid situations where employees performing the same tasks are absent simultaneously, and allows planning substitutes where needed.
Changing the schedule and exceptions
Life brings unexpected situations, and sometimes an employee cannot take leave at the time specified in the schedule. Likewise, an employer may occasionally be unable to grant leave at the planned time due to, for example, a major order. In such cases, the schedule can be changed only by mutual agreement.
The schedule can be supplemented as new employees join the company. If the employer does not wish to adjust the schedule every time a new employee arrives, new hires may submit a vacation request at least 14 calendar days before the start of leave.
The 14-day advance notice requirement does not apply during the first quarter, when the schedule is still being prepared. During this time, leave can be taken only with the employer’s consent (except for the employee groups mentioned above who may choose their time independently).
When is it most beneficial to take vacation?
Employer perspective:
The best outcome is achieved when vacations are evenly distributed throughout the year. This prevents workflow disruptions and avoids a large vacation balance at year-end. Well-rested employees ensure higher work quality and a more motivated team.
Employee perspective:
Vacation planning has both a timing and a financial dimension.
- Those wishing to take a longer vacation may benefit from choosing periods that include public holidays – these extend the vacation without reducing the number of vacation days.
- For employees with variable pay, it is financially advantageous to plan leave in full weeks (Mon–Sun) and choose a period when bonuses are included in the calculation of average earnings.
- In general, it is most beneficial to take vacation during months with more working days – the value of one working day is lower.
In 2026, for employees with variable pay, July (23 working days) is the most favourable month for taking vacation, while February (19 working days) is the least favourable, assuming that bonuses earned from January to June are included in the average pay calculation. For employees with a fixed monthly salary, vacation pay remains unchanged – they receive the same amount as if they were working.
Timely rest is the best tool for preventing stress.
Vacation is not a luxury or a reward
Preparing a vacation schedule is not just a routine task but a conscious effort to value people and maintain a healthy company culture. A well-planned schedule creates confidence for employees and stability for the organisation.
A vacation schedule is more than a table – it is a sign that employee wellbeing truly matters. A rested person is more creative, attentive and cheerful. And a cheerful person builds a stronger team.
Although coordinating vacations requires reasonableness, flexibility and mutual consideration, it always pays off for the company. Vacation is not a luxury or a reward, but a necessary investment in quality work and a balanced life.
