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Industry News

Holiday Entitlement

February 2007


On 12th January 2007 The Government published a response to its Initial Consultation on Increasing the Holiday Entitlement. More information …….

On the same day the Government also published a further consultation document on its proposals to implement the manifesto commitment to make paid time off for bank holidays additional to the current four-week holiday entitlement. Raising the holiday entitlement to 5.6 weeks is equivalent to an increase from 20 days to 28 days for someone working a five day week.

In light of the response to the initial consultation, the Government is now consulting on detailed proposals and draft regulations to increase the holiday entitlement. The Government proposes:

- to phase the additional holiday, introducing 0.8 weeks (taking your holiday entitlement from 20 days to 24 days if you work 5 days a week) from 1 October 2007, and the remaining 0.8 weeks from 1 October 2008/ /

- any time off for work and public holidays is included in the additional entitlement (e.g. if you already get 4 weeks’ leave plus time off for bank holidays, your holiday entitlement will not increase)/ /

- that the holiday will be calculated on a pro-rata basis for part-time workers (4.8 then 5.6 times their usual working week), regardless of whether or not they usually work on bank holidays/ /

- that the increases from October 2007 and 2008 will be awarded proportionally depending on when your leave starts EG if your leave year starts in January, you work a 5 day week and you currently receive 20 days including bank and public holidays, you will be entitled to an additional day from October to December 2007.

- to cap the maximum statutory holiday entitlement at 28 days, although employers may give more contractual holiday than that/ /

- that some or all of the additional holiday may be carried over to the following leave year with the agreement of both the employer and the member of staff/ /

- that payment in lieu of taking holiday will not be permitted except on termination of employment.

If you wish to calculate your new holiday allowance, an easy to read table is included on the back page of the consultation document. We hope to produce an on-line calculator nearer introduction.


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