Additional Holiday Entitlement for Workers - Employment Law News Autumn 2007

01 October 2007

The Working Time (Amendment) Regulations 2007 are to be implemented on 1 October 2007.

The aim of the new regulations is to increase the minimum annual leave entitlement from four weeks to 5.6 weeks and the increase is set to take effect in two stages; the first additional 0.8 weeks (four days a week for full time workers) from 1 October 2007 and the second 0.8 weeks from 1 April 2009.

The current statutory minimum does not include the eight permanent bank and public holidays in England. The aim of the new regulations is to make sure that these days are included. This was a manifesto commitment of the Government during the 2005 General Election.

We’ve set out some of the most frequently asked questions by employers about this legislation and holiday entitlement in general:

What if I already allow my workers bank holidays in addition to the normal four weeks, does anything change?

No, it does not. The regulations, which provide for additional days holiday will not apply where workers are already entitled to at least 5.6 weeks’ holiday prior to 1 October 2007. It is useful to know this in case any workers request additional holiday when their employer already meets the requirements of the amended regulations.

Do employers have to introduce changes immediately on 1 October 2007?

The changes must take effect as of 1 October 2007. However, the Government has put in place a temporary, transitional measure to help employers, making it possible to make a payment in lieu of the additional holiday entitlement until 1 April 2009.

Are employers usually allowed to make a payment in lieu of holidays?

Annual leave entitlement may not be replaced by payment in lieu. The transitional measures are an exception and will cease to operate in April 2009. In any event, workers’ current entitlement of four weeks’ annual leave cannot be replaced, except on termination of employment when a payment can be made in lieu of outstanding accrued holiday.

Are the extra days to apply on the actual bank holidays?

While the additional eight days are designed to ensure that workers receive paid time off from public holidays in addition to their right to four weeks’ holiday, there is no obligation to allow workers to take these extra days off on an actual public holiday. What is important is to allow them the extra time off during the course of the year.

What about workers who work six day weeks, presumably they would be entitled to 33.6 days annual leave?

Even though the draft regulations refer to the right to 5.6 weeks’ holiday, they cap the total amount of statutory holiday at 28 days. Therefore, those working for six days a week who are currently entitled to 24 days’ holiday under the regulations will only be entitled to a total of 28 days’ holiday after 1 April 2009.

How will it be calculated?

The increases that take place in October 2007 and April 2009 will be calculated proportionally depending on when the employer’s leave year starts.

And finally… if this all seems a little confusing, the Government has stated that it will provide an online calculator to make it simpler for everyone to work out their new holiday.

For more information please contact Amanda Okill, Solicitor.
 

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