More holidays for workers

Currently, the Working Time Regulations 1998 specify a minimum of four weeks’ (for most full time workers this equates to 20 days) annual leave for workers (including employees) but this is set to increase from October 2007. In another “family friendly” government policy, Labour’s initial manifesto pledge of upping holiday entitlement has recently been the subject of two DTI consultations.

As a result, the Government plans to raise our annual leave period to 4.8 weeks (for most full time workers this equates to 24 days) from 1 October 2007 and to 5.6 weeks (28 days) but not now until 1 April 2009.

Workers will not need a particular qualifying period of service to benefit from the new rights therefore temps will also be covered. Part-time workers will have their holiday pro-rated.

The current statutory minimum of four weeks is inclusive of the bank holidays, and the additional holiday will also be inclusive of bank holidays making it clear that all workers are entitled to four weeks plus bank holidays (pro-rated accordingly) when the full increase comes into force in April 2009.

In practice, therefore, the additional leave will not make a significant difference to those employers who already offer their workforce four weeks or more annual leave in addition to the normal (paid) bank holidays. Indeed, if an employer meets the following standards, and continues to do so, they will not be bound by the new laws: 

• by 1 October 2007 they offer their full time workers at least 5.6 weeks (28 days) holiday a year;
• they allow workers to carry over holiday of between 20 and 28 days into the following year; and
• if paying workers in lieu of unused holiday, only that which is in excess of 28 days is paid.

From 1 October 2007 until 1 April 2009, it will be possible to pay workers in lieu of the extra four days, designed to assist employers make transitional arrangements.

Helpfully, the DTI website will soon have an electronic calculator to make it easier for a worker’s new holiday entitlement to be correctly calculated.

Regulations setting out the detail of these changes have not yet been made available and we will therefore cover this issue in a separate briefing later in the year. Watch this space!