Parents are allowed to take their children on holiday during term-time, Education Minister Huw Lewis has said.
Mr Lewis has written to education bosses across Wales clarifying the existing rules.
Current regulations in Wales give all headteachers statutory powers to authorise leave for family holidays during term-time.
Mr Lewis has advised bosses that blanket bans on term-time holidays are contrary to the Welsh regulations.
He has also stated that he will be writing to headteachers to make the position clear.
The Minister was responding to a letter written by the Chair of the Welsh Assembly Petitions Committee, following a Petitions Committee meeting in the Senedd to discuss two petitions on the issue of term time leave that have received over 1,800 signatures between them.
Up until now, many local authorities in Wales were advising their schools against authorising term-time leave, and some had imposed blanket bans on approval of requests for term time leave regardless of family circumstances.
In his letter, Mr Lewis said: “The Regulations in Wales provide for headteachers to exercise their discretion in relation to authorising absence for up to ten days per year.
“The term ‘exceptional circumstances’ relates only to requests for absences of more than ten school days.”
The Minister has also reiterated parents’ right to challenge where unlawful penalties have been issued.
Craig Langman, is the Chairman of campaign group Parents Want a Say.
He said: “This is a terrific result for parents in Wales and we thank the Petitions Committee for their foresight and courage in confronting this issue. We hope this will encourage Westminster to reconsider its position on the policy in England.
“This is a victory for parents who believe they should have the right to enjoy quality family time with their children on an affordable annual family holiday or are able to take their children out of school for important events such as weddings, funerals etc.
“However, there is a very troubling issue that needs to be addressed – the fact that parents have been unlawfully fined for the past two years. This needs to be looked at urgently.”