Minimum statutory entitlement to paid holiday increases

Employers are reminded that as of today the statutory entitlement to paid leave will rise from 24 days (for those working a five-day week) to 28 days.  Bank and public holidays can be included in the entitlement. 

This means that all workers will be entitled to annual leave at 5.6 times their usual working week – capped at a maximum of 28 days. As a guide, Business Link gives the following examples. A worker working a:

• three-day week will be entitled to 16.8 days’ paid annual leave; and
• 5.5-day week will be entitled to 28 days’ paid annual leave (not 30.8 days).

Existing workers will not have to work for a qualifying period to benefit from this increase. New workers will be entitled to the increased entitlement in full as soon as they start work, although employers are allowed to restrict the rate at which they take leave in their first year of employment.

Also, from today, in most cases, employers can no longer replace leave with a payment in lieu, even if a worker requests it.

Businesses must calculate the increases proportionally, depending on when the leave year starts. Partial days can be rounded up to the nearest full day or left as they are. However, they cannot be rounded down.

If this change affects your employees it’s not necessary to consult about the changes or to update existing employees’ contracts of employment.  However, employees should be informed in writing of their increased holiday entitlement.