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| Industry News |
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Update on Annual Leave Proposals
June 2007
Today the Government published its response to the further consultation on increasing the Holiday Entitlement and also laid the regulations in Parliament.
The Parliamentary process is now on-going and we hope that the regulations will be approved by Parliament by the end of the month, to give three months notice of the changes.
As a result of the last round of consultation, some minor changes have been made to the draft regulations including
- to delay introduction of the second increase from 4.8 to 5.6 weeks until 1st April 2009. The Government’s preferred approached in the January 2007 consultation had been to introduce half of the additional holiday entitlement from October 2007, and the remaining half from October 2008. On further consideration of the cost pressures, in particular for the health and social care sector, the Government propose the later date. The initial increase will come into effect on 1 October 2007, as originally suggested.
- to enable payment in lieu of the additional holiday entitlement (the additional 0.8 weeks) to continue until 1 April 2009. This is a temporary measure to help employers with transitional arrangements, such as recruiting and training any additional staff to cover the increased holiday entitlement.
- to provide an incentive for early compliance with the regulations, whereby employers that already meet the full requirements of the regulations as at 1 October 2007 (giving the equivalent of 20 days’ holiday, without payment in lieu and any carryover for no more than one year) will be taken outside of the regulations, as long as they continue to meet those regulations.
The other main provisions of the draft regulations remain unchanged – and are listed on our website (although there may be a slight delay in updating the website)
We aim to publish detailed guidance for implementation, including an online calculator soon.
Source: www.dti.gove.uk/employmentholidays/index/html 12th June 2007
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