A couple of months ago we reported
on the government’s proposal 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 five day week.
The government has recently published its
response to the further consultation and the
regulations are making their way through parliament.
Parliamentary approval should be forthcoming
by the end of June which will give employers
three months notice to implement the changes.
Following the consultation some amendments
have been made. The main change is delaying
when employees will be entitled to the full
amount of additional leave.
The government will delay introducing the
second increase from 4.8 to 5.6 weeks until
1 April 2009. This will increase the holiday
entitlement of an employee, who works a five
day week, from 24 days to 28 days leave. Apparently
there has been pressure from the health and
social care sector, which has led to the government
proposing the later date. The original proposal
had been to introduce the change from 1 October
2008.
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 government have 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 get four
weeks leave plus bank holidays will not be
entitled to an increased entitlement.
Part time workers minimum entitlement will
be calculated on a pro-rata basis (4.8 then
5.6 times their usual working week), regardless
of whether or not they usually work on bank
holidays.
Increases from October 2007 and April 2009
will be calculated proportionally depending
on when the leave year starts. The DTI’s
announcement includes the following example.
‘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.’
The government also state that they plan to
cap the maximum statutory holiday entitlement
at 28 days, but that employers may give more
contractual holiday than that if they choose.
Also some or all of the additional holiday
may be carried forward to the following leave
year with the agreement of both the employer
and employee. Payment in lieu of additional
holiday will not be permitted from 1 April
2009 unless paid on termination of employment.
The DTI will make an online calculator available
shortly and we will let you have the link for
this as soon as it is available.
These proposals relate to England, Wales and
Scotland. The Department for Employment and
Learning in Northern Ireland are in the process
of making proposals for Northern Ireland.
Internet links:
DTI
annual leave press release and to be kept informed of developments email
annual.leave@dti.gsi.gov.uk
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