SOURCE: Vacation Tracker TITLE: Year-End PTO: Handling Unused Leave and Holiday Requests URL: https://vacationtracker.io/blog/year-end-pto/ LANG: en PUBLISHED: 2026-11-12 UPDATED: 2026-11-12 AUTHOR: Lav READING: 12 min TAGS: how-to-guides SUMMARY: December holds about 1 in 7 of the year's vacation days. How to handle unused PTO, holiday requests, Christmas cover and the January reset in every office. # Year-End PTO: Handling Unused Leave and Holiday Requests Year-end PTO looks like one job: reset the balances on January 1. Here's the catch: it takes six weeks of decisions, with different rules in each office. In our data, December holds about 1 in 7 of the year's vacation days; December 21 to 31 alone holds about 1 in 10. Leave those decisions late and unused days become disputes, three colleagues request December 27 off, and HR spends the month answering balance questions. Decide the rules in November, and employees can book around them. Start with unused PTO by location, work through December requests and Christmas coverage, then prepare the January reset. There's a checklist at the end. ## Why year-end PTO gets harder with every office you add Each office adds another holiday calendar, leave allowance or busy period to coordinate. A company-wide December deadline can help managers plan, but employees still need the unused-leave rules for their own location. Our Leave Trends report (/tools/leave-trends/) found that 88% of multi-location companies run two or more holiday calendars, and 64% give locations different allowances. December's share of the year's vacation days by country, 2025Horizontal bar chart. Australia 22.0%; Ireland 18.6%; Sweden 18.0%; Germany 17.8%; France 17.8%; India 17.1%; United States 15.9%; Spain 15.9%; Netherlands 15.5%; All companies 15.4%; United Kingdom 14.9%; Switzerland 14.6%; Canada 14.4%; Poland 13.9%.December's share of the year's vacation days, 2025Australia22.0%Ireland18.6%Sweden18.0%Germany17.8%France17.8%India17.1%United States15.9%Spain15.9%Netherlands15.5%All companies15.4%United Kingdom14.9%Switzerland14.6%Canada14.4%Poland13.9%Source: Vacation Tracker leave data, approved vacation days by company country. An average month holds about 8%.December's share of the year's vacation days, 2025Australia 22.0%; Ireland 18.6%; Sweden 18.0%; Germany 17.8%; France 17.8%; India 17.1%; United States 15.9%; Spain 15.9%; Netherlands 15.5%; All companies 15.4%; United Kingdom 14.9%; Switzerland 14.6%; Canada 14.4%; Poland 13.9%December's share of the year'svacation days, 2025Australia22.0%Ireland18.6%Sweden18.0%Germany17.8%France17.8%India17.1%United States15.9%Spain15.9%Netherlands15.5%All companies15.4%United Kingdom14.9%Switzerland14.6%Canada14.4%Poland13.9%Source: Vacation Tracker leave data, approved vacationdays by company country. An average month holds about 8%. In our data, December accounts for about 22% of the year's vacation in Australia, where it's summer, versus 18% in Germany, 16% in the US and 14% in Canada and Poland, so one December coverage plan won't fit every office. The table shows the share of each year's vacation days that fell in December, by the country of the company, with the three-year average in the last column. December's share of the year's vacation days, by country (2023–2025)Country202320242025Average All companies14.6%15.3%15.4%15.1% United States15.5%15.5%15.9%15.6% Canada14.2%15.0%14.4%14.5% United Kingdom13.9%14.5%14.9%14.4% Ireland16.3%18.9%18.6%17.9% Germany13.7%18.4%17.8%16.6% Netherlands13.8%16.8%15.5%15.4% France13.6%14.4%17.8%15.3% Spain18.1%18.0%15.9%17.3% Poland14.2%14.5%13.9%14.2% Switzerland15.6%17.6%14.6%15.9% Sweden13.5%13.1%18.0%14.9% India16.2%17.3%17.1%16.9% Australia16.6%19.5%22.0%19.4% Assign an owner in each office. Have that person resolve local policy questions while department managers handle coverage. For the wider setup, see how to manage leave across multiple countries (/blog/manage-leave-across-multiple-countries/). ## Does PTO reset every year? Not automatically. PTO resets on the date your policy sets: January 1, another leave year or each employee's work anniversary. A new allowance doesn't wipe out the old balance either. What happens to unused days depends on your policy and on the law where each employee works. Reset typeHow it worksCommon where Calendar yearNew allowance starts January 1Policies organized around January to December Fiscal or leave yearNew allowance starts on another fixed dateLeave and budgeting years match Work anniversaryEach employee has a separate reset dateEntitlement follows the hire date The US Department of Labor (https://www.dol.gov/general/topic/workhours/vacation_leave) says the FLSA does not require paid vacation. In the UK, employers should communicate the statutory leave year's dates (https://www.gov.uk/holiday-entitlement-rights/calculate-leave-entitlement) when employees start. Record each office's fiscal year start date (/blog/fiscal-year-start-date/) separately from its carryover deadline. They answer different questions: when new entitlement starts, and how long old days remain available. ## What happens to unused PTO at the end of the year? Unused PTO can carry over, expire under a use-it-or-lose-it rule, or be paid out. Which of those you can use depends on the law where each employee works. Separate statutory leave from extra company days first, then set caps and expiry dates for each. OptionHow it worksWhat to decide CarryoverMoves unused days into the next leave yearPermitted cap and expiry date Use it or lose itExpires eligible unused daysWhether expiry is lawful and notice requirements are met PayoutPays for eligible unused daysEligibility, rate and payroll date; estimate with the PTO payout calculator (/tools/pto-payout-calculator/) A mixTreats statutory and extra days separatelyWhich rules apply to each balance Carryover (/glossary/carryover/) needs its own balance record so employees can see which days to use first. Year-end rules by location (examples) LocationCan unused leave be lost?Notes California, US (/leave-laws/usa/)Earned vacation cannot be forfeitedIt is wages; reasonable accrual caps are allowed. California DLSE (https://www.dir.ca.gov/dlse/FAQ_Vacation.htm) UK (/leave-laws/europe/united-kingdom/)Yes, with exceptions5.6 weeks a year. Carryover is allowed if the contract says so, and protected in set cases such as sickness, family leave or an employer that didn't let the worker take it. Acas (https://www.acas.org.uk/checking-holiday-entitlement/carrying-over-holiday) Germany (/leave-laws/europe/germany/)Only if the employer prompted and warned the employee (see reminders below)Leave generally belongs in the calendar year; urgent operational or personal reasons permit carryover through March 31 of the next year. BUrlG §7(3) (https://www.gesetze-im-internet.de/burlg/__7.html) Netherlands (/leave-laws/europe/netherlands/)Statutory days normally expire six months after the earning year endsExceptions apply if the employee could not take leave; a longer period can be agreed. Dutch government (https://www.rijksoverheid.nl/documenten/vraag-en-antwoord/vakantiedagen-en-vakantiegeld/hoe-kan-ik-mijn-vakantiedagen-opnemen) Ontario, Canada (/leave-laws/canada/)No, it has to be scheduledVacation normally must be taken within 10 months after the entitlement year ends. Ontario ESA guide (https://www.ontario.ca/document/your-guide-employment-standards-act-0/vacation) Australia (/leave-laws/oceania/australia/)Unused annual leave rolls overAnnual leave accumulates from year to year. Fair Work Ombudsman (https://www.fairwork.gov.au/leave/annual-leave) Use the PTO rollover guide (/blog/a-guide-to-pto-rollovers/) for US state rules and the guide to use-it-or-lose-it vacation policies in Canada (/blog/use-it-or-lose-it-vacation-policy-in-canada/) for provincial differences. ## Can an employer make employees use PTO before the end of the year? Often, yes, as long as you follow local notice rules. In California, employers can control when vacation is taken (https://www.dir.ca.gov/dlse/FAQ_Vacation.htm). In the UK, employers can set holiday dates with notice (https://www.gov.uk/holiday-entitlement-rights/booking-time-off). In the EU, employers must give people a real chance to take their leave (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62016CJ0684_SUM) before it can expire. The most common use is a Christmas shutdown. In the UK, the default notice is at least twice the length of the required leave; contractual notice rules can differ. For Australian offices, directions depend on the applicable award or agreement (https://www.fairwork.gov.au/leave/annual-leave/directing-an-employee-to-take-annual-leave). Announce a Christmas shutdown early. Calculate deductions using each office's working days and holiday calendar, and resolve insufficient balances before employees book travel. ## Remind people about unused days before they expire Send personal balance reminders in November, again in early December, and once before the relevant expiry date. Leave enough time between the final reminder and expiry for someone to book and actually take the days. In the EU, CJEU case C-684/16 (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:62016CJ0684_SUM) establishes that statutory leave cannot automatically lapse unless the employer enabled and encouraged its use and warned, in good time, that it would be lost. Reminders belong in that process. Include: - Days remaining after approved bookings. - Days eligible to carry over and any expiry date. - How to book, including the request deadline. Ask managers to help people find available dates. An expiry warning is little use when every request comes back denied. Keep a record of notices and the alternatives offered. ## How to handle too many time-off requests in December Set minimum cover for each team, publish a request deadline, and decide how competing requests will be ranked before approving them. Review coverage by skill and shift as well as headcount: two people available is not enough if neither can handle the work that must continue. Share of the year's vacation days by weekBar chart of the share of the year's vacation days taken in each week. Week 52 is the highest at 6.3%, followed by week 51 (3.4%) and week 1 (3.3%); an average week holds about 1.9%.Share of the year's vacation days, by week - 0% - 2% - 4% - 6%Week 1: 3.3%Week 2: 1.1%Week 3: 1.0%Week 4: 1.0%Week 5: 1.1%Week 6: 1.2%Week 7: 1.4%Week 8: 1.5%Week 9: 1.3%Week 10: 1.3%Week 11: 1.4%Week 12: 1.6%Week 13: 1.6%Week 14: 1.7%Week 15: 1.6%Week 16: 1.7%Week 17: 1.6%Week 18: 1.6%Week 19: 1.5%Week 20: 1.6%Week 21: 1.7%Week 22: 1.8%Week 23: 1.8%Week 24: 1.8%Week 25: 2.1%Week 26: 2.2%Week 27: 2.6%Week 28: 2.5%Week 29: 2.5%Week 30: 2.6%Week 31: 2.6%Week 32: 2.8%Week 33: 2.5%Week 34: 2.4%Week 35: 2.2%Week 36: 2.0%Week 37: 1.7%Week 38: 1.7%Week 39: 1.6%Week 40: 1.7%Week 41: 2.0%Week 42: 2.1%Week 43: 2.1%Week 44: 2.1%Week 45: 1.3%Week 46: 1.4%Week 47: 1.4%Week 48: 1.9%Week 49: 1.5%Week 50: 1.8%Week 51: 3.4%Week 52: 6.3%JanMarMayJulSepNovDecWeek 52: 6.3%Source: Vacation Tracker Leave Trends report. An average week holds about 1.9%.Share of the year's vacation days, by weekWeek 52: 6.3%Share of the year's vacation days,by week - 0% - 2% - 4% - 6%JanAprJulOctDecWeek 52: 6.3%Source: Vacation Tracker Leave Trends report. An averageweek holds about 1.9%. Our Leave Trends report shows week 52 is the busiest week, accounting for 6.3% of the year's vacation days, more than three times an average week. How far ahead vacation is bookedGrouped bar chart of median booking lead time. December dates: 2022 17 days, 2023 18 days, 2024 21 days, 2025 20 days. Other months: 2022 11 days, 2023 12 days, 2024 12 days, 2025 12 days.How far ahead vacation is booked (median days)December datesOther months - 0 - 5 - 10 - 15 - 20 - 2517112022181220232112202420122025Source: Vacation Tracker leave data, median days between request and first day of leave.How far ahead vacation is booked (median days)How far ahead vacation is booked(median days)December datesOther months - 0 - 10 - 2017112022181220232112202420122025Source: Vacation Tracker leave data, median days betweenrequest and first day of leave. In our data, December vacation is booked a median of about 20 days ahead versus 12 for other months, so publish deadlines and coverage rules by early November. - Set minimum cover per team. Name the duties that must stay covered, including any handover between offices. - Set a request deadline. Give managers a decision date too, so employees can make arrangements. - Publish a priority rule. Use the Christmas allocation methods below (#who-gets-christmas-off-how-to-decide-fairly) for competing requests. - Cap simultaneous absences. Apply the cap to the department or sub-department that shares the work. - Block dates that cannot move. Limit a holiday blackout period (/glossary/blackout-periods/) to the team that needs it, such as Customer Support in the run-up to Christmas. - Allow swaps. Recheck skills and coverage before approving the replacement dates. - Explain denials in writing. State the coverage gap and suggest dates the employee can take instead. If you're already in mid-November, publish the remaining availability now rather than retroactively changing the rules for approved leave. A shared calendar helps managers avoid scheduling conflicts (/blog/avoid-scheduling-conflicts/) before approving another request. ## Who gets Christmas off? How to decide fairly Publish one priority rule before Christmas requests open, then apply it consistently across offices while respecting local requirements. Volunteers first, then a yearly rotation for the dates everyone wants, works best: the same people don't miss out every year because someone else booked first. MethodHow it worksBest when Volunteers firstAsk who prefers to workEmployees want different days off Yearly rotationGive this year's Christmas workers priority next yearThe same dates fill up annually First come, first servedOrder requests by submission time within a published windowTiming is an agreed priority Seniority as a tie-breakerUse tenure only after the main criteriaAn agreed policy uses service to resolve ties LotteryDraw between genuinely tied requestsCoverage and priority are otherwise equal Split shiftsShare Christmas Eve or Christmas Day, and New Year's Eve or New Year's DayShorter shifts still meet coverage needs Rotate around each office's own peak days. Offices in different countries may place different importance on Christmas Eve, Christmas Day or New Year. Keep last year's allocation for next year's rotation. Give employees visibility into who's out, not the personal reasons behind an absence, and avoid asking managers to judge whose holiday plans matter more. ## The January reset, office by office Load next year's holidays before January 1, apply the correct carryover and expiry rules, and show each employee their new balance. Only reset locations whose leave year actually starts then. Start with the 2027 US holiday calendar (/holidays/united-states/2027/) and 2027 Canadian holiday calendar (/holidays/canada/2027/), then select the holidays each office observes. Review local working weeks before counting days for requests that cross into January. Reconcile December approvals, cancellations and taken leave before carrying balances forward. Show carried days separately from new entitlement, with their own expiry dates, so employees know what they can book. For the setup, follow how brought forward leave works across locations (/blog/brought-forward-vacation-tracker/). If January 1 is also your switch date, use the guide to switching leave-tracking systems (/blog/switch-leave-tracking-system/) to move the records you'll need and avoid duplicate deductions. Ask each location owner to review the opening balances before payroll uses the report. ## Year-end PTO checklist Download as PDF (/static/documents/blog/year-end-pto-checklist.pdf) November - Record each location's reset date. - Separate statutory and extra company leave. - Review local carryover and expiry rules. - Send personal balance reminders. - Set minimum cover by team and skill. - Publish the holiday request deadline. - Agree on Christmas priority rules. - Announce any shutdown dates. December - Resend balances after approved bookings. - Resolve competing holiday requests. - Explain denials and offer alternative dates. - Review swaps against coverage needs. - Remind employees before applicable expiry dates. - Assign holiday handovers. - Load next year's local holidays. - Reconcile taken leave and cancellations. January - Apply each location's carryover rules. - Display opening balances and expiry dates. - Export balances for payroll. - Save Christmas allocations for next year's rotation. ## How to handle year-end PTO in Vacation Tracker Vacation Tracker lets you request, approve and track leave with policies and holidays set by location. Use it on its own or alongside an HR or payroll system: the year-end gap is often applying advanced leave rules consistently, even when balances already have a home. Apply your year-end rules automatically Set the rules for the locations and departments they belong to: Blackout Period (/automations/blackout-period/): a Pre-Christmas Blackout Period stops Customer Support in your US offices from booking PTO between December 14 and 24, every year. Anyone who tries gets an automatic reply that explains why. ![Pre-Christmas Blackout Period in Vacation Tracker blocking Paid Time Off for Customer Support in the USA location from December 14 to 24, recurring every year, with an auto-reject response](/static/img/blog/year-end-pto/blackout-period-pre-christmas-customer-support.webp) Maximum Users Away (/automations/maximum-users-away/): a January Rush rule keeps at least half of US Customer Support at work from January 1 to 31. Once 50% of the team is off, new requests are declined with your message. ![January Rush Maximum Users Away rule in Vacation Tracker limiting leave to 50% of Customer Support in the USA location from January 1 to 31, 2027](/static/img/blog/year-end-pto/maximum-users-away-january-rush-customer-support.webp) Leave Request Notice Period: require two weeks' notice for December requests. Brought Forward with expiry dates (/knowledge-base/guide-brought-forward-rollover-policy/): carry eligible unused days into the new leave year using each location's cap and deadline. ![London PTO policy in Vacation Tracker with Brought Forward set to Limited, 5 days, expiring March 31, 2027](/static/img/blog/brought-forward-vacation-tracker/brought-forward-settings-london-2027.webp) Every office automatically applies the rules assigned to it. Employees check their own balances in Microsoft Teams (/integrations/microsoft-teams/) or Slack (/integrations/slack/), instead of asking HR to look them up. ![Vacation Tracker My Status summary in Slack showing remaining, used and total days for each leave type](/static/img/blog/year-end-pto/slack-my-status-leave-balance.webp) Daily and weekly who's-out summaries go to a Microsoft Teams or Slack channel, or by email for Google Workspace (/integrations/google-workspace/) and email teams. Approved leave syncs to Google Calendar and Outlook. ![Vacation Tracker leave calendar in Microsoft Teams showing who is out each day, names redacted](/static/img/blog/year-end-pto/vt-microsoft-teams-calendar-redacted.webp) Approvals move faster there too: our Leave Trends report found a median of 32 minutes for requests approved in chat, against 152 minutes outside chat. For a balance review, ask Claude, ChatGPT or Copilot Studio who still has unused days in the Berlin office through the Vacation Tracker MCP connector (/integrations/mcp/). Access follows your role and visibility permissions. Export the leave balance report by location for year-end payroll. ![Leave Balance Report filtered to the London location with brought forward, yearly quota and used days, ready to download as Excel or CSV](/static/img/blog/brought-forward-vacation-tracker/leave-balance-report-by-location-2027.webp) Set the rules once per location, then handle December requests where your team already works. Start with a 14-day free trial. Manage leave across all your locations Leave policies and public holidays for every office, state or country, in Microsoft Teams, Slack or Google Workspace. Start free trial (https://app.vacationtracker.io/signup) Book a demo → (/request-a-demo/) ![Vacation Tracker locations, each with its own leave policies and public holidays](/static/img/blog/blog-cta-locations.webp) ## Frequently asked questions Q: Does PTO expire at the end of the year? PTO expires only where the applicable law and policy allow it. California prohibits forfeiting earned vacation, while other locations have different rules; an annual reset date alone does not tell you whether unused days disappear. Q: Is it better to use PTO or get paid out? For most employers, time off comes first: rested people, and no payout cost. Budget for payouts where they're allowed or required. Review eligibility before offering cash: California permits an annual payout of unused earned vacation, but that is not a universal rule. Compare the eligible payout cost with the staffing needed to cover leave. Q: Can an employer deny PTO during the holidays? An employer's ability to deny holiday PTO depends on local rules and the applicable policy. In the UK, employers can restrict holiday timing, subject to notice rules, but cannot prevent workers from taking their leave altogether. Explain the coverage problem and offer another date. Q: What is a holiday blackout period? A holiday blackout period is a defined window when an employer restricts vacation requests to maintain coverage. It can apply to one location or department, such as Customer Support in the two weeks before Christmas, rather than the whole company. Q: How far in advance should employees request holiday time off? Collect December requests in November, with a published deadline and a date by which managers decide. In our data, December leave is booked about 20 days ahead, so a deadline in mid-November works for most teams. Set the notice requirement early enough to arrange cover, taking account of the applicable local and contractual rules. Tell employees how later requests will be handled. Q: What's the best software to handle December leave requests across locations? Vacation Tracker is built for this: per-location holidays and leave policies, coverage rules, blackout dates and balances in Microsoft Teams or Slack. Look for department-level limits on simultaneous absences, carryover expiry settings and approvals in chat. Those are the controls that turn a holiday policy into a working December schedule.