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Business Newsletters - Autumn 2007
28 days holiday on the horizon
Earlier this year the government proposed to increase the minimum statutory holiday entitlement from the current 20 days (including bank holidays) to 28 days (bank holidays inclusive). The 28 days equates to 5.6 weeks for an employee working a normal five day week.
Following consultation with interested parties some amendments have been made to the original proposals. The main change is delaying when employees will be entitled to the full amount of additional leave.
The initial increase from 4 to 4.8 weeks, or 20 to 24 days for an employee who works a five day week, will come into effect on 1 October 2007, as originally suggested.
The second part of the increase, which was due to take effect from 1 October 2008, is delayed to 1 April 2009. This increase will be from 4.8 to 5.6 weeks. This will increase the holiday entitlement of an employee who works a five day week, from 24 days to 28 days leave.
The government has also amended the proposals to enable employers to pay employees for the additional holiday entitlement (the additional 0.8 weeks or 4 days) until 1 April 2009. This is a temporary measure to ease the transition.
The increased leave entitlement includes bank holidays, so employees who already receive four weeks leave plus bank holidays will not be automatically entitled to an increase.
Increases from October 2007 and April 2009 will be calculated proportionally depending on when the employee’s leave year starts. The Department for Business, Enterprise and Regulatory Reform (DBERR) propose to make an online calculator available to assist employers in calculating entitlement.
In the meantime an example of how the increase in entitlement should be calculated has already been issued by the DBERR:
‘If your leave year started in April, you work a 5 day week and you currently receive 20 days including bank and public holidays, you will be entitled to 2 additional days from October 2007 to March 2008.’
These proposals relate to England, Wales and Scotland. The Department for Employment and Learning in Northern Ireland is in the process of making proposals for Northern Ireland.
