Increasing the statutory holiday entitlement

Relevant to
Employers who do not currently provide all workers employed by them with an annual leave entitlement of at least 5.6 weeks

Takes effect on
1 October 2007

From 1 October 2007, the statutory minimum annual holiday entitlement will rise from 4 weeks (20 days for those working a 5 day week) to 4.8 weeks (24 days).

From 1 April 2009, all workers, including those working part time, will be entitled to 5.6 times their usual working week - capped at a maximum of 28 days.

Employees will not have to work for a qualifying period. They will be entitled to the increased entitlement in full as soon as they start work. You will be able to restrict the rate at which they take leave in their first year of employment.

You can include time off for bank and public holidays in the entitlement.

Part-time workers must receive annual leave equal to 4.8 then 5.6 times their usual working week, regardless of what days of the week they usually work. The changes will not apply to you if by 1 October 2007 you:
  • already pay all your full- and part-time employees for a minimum of 5.6 weeks of annual leave (though this figure can include bank and public holidays)
  • do not allow payment in lieu of taking holiday
  • allow the extra 1.6 weeks to be carried over for only one year - if you normally allow holiday to be carried over
You must calculate the increases proportionally, depending on when your leave year starts. You can round up partial days to the nearest full day or leave them as such. You will not be allowed to round down a partial day.

If both you and an employee agree to the arrangement, you will be allowed to carry over to the following year some or all of the additional holiday.

You must include the additional holiday when you work out average weekly working hours.



For more information visit: www.businesslink.gov.uk


 
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