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Employment Law update - Increase in holiday entitlement
- With effect from 1 October 2007 the statutory annual leave will increase for most full time workers from 20 days a year to 24 days a year (or technically 4.8 weeks statutory annual leave). There will be a further increase to 28 days per annum (5.6 weeks per annum) from 1 April 2009.
- All part time workers will be entitled to statutory minimum holiday on a pro rata basis (reflecting the existing position).
- Payment in lieu of the additional days will only be possible until 1 April 2009. After 1 April 2009, it will not be possible to make a payment in lieu of accrued untaken holiday, except on termination.
- Although it is not currently permissible under the Working Time Regulations to carry over unused statutory holiday entitlement into the next holiday year, employers and workers will be able to agree that the additional holiday entitlement can be carried over into the next annual leave year.
- The increase from October 2007 will be calculated proportionately depending on when the leave year starts. The Department for Business Enterprise and Regulatory Reform (formally the DTI) has published an online calculator to enable employers to calculate the increased holiday entitlement for existing workers. This is available on the DBERR website (www.berr.gov.uk).
Employers who already provide 28 days' leave or more
Employers who already provide their workers with at least 28 days paid annual leave each year (e.g. 20 days plus bank holidays) will be exempt from the new provisions if, as at 1 October 2007, they already comply with the other rules about the extra entitlement, i.e. not paying in lieu in relation to the 28 days leave (except on termination) and not allowing workers to carry over the period of leave between 20 and 28 days after 1 April 2009.
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