Increases in holiday entitlement postponed

The Department of Trade And Industry have announced changes to their original proposals to increase annual leave entitlement for workers in the UK. The working time amendment regulations 2007 will still increase the statutory minimum holiday entitlement in Great Britain to 28 days but the timetable for implementation has been put back.Holiday entitlement will now be increased in two phases: Phase One On 1st October 2007 statutory annual leave to increase from 20 to 24 days (4 to 4.8 weeks). Phase Two On 1st April 2009 statutory leave will increase from 24 days to 28 days (4.8 weeks to 5.6 weeks).

Additional Help For Businesses

As a little extra help to employers, the DTI have allowed companies to pay workers in lieu of holiday for the initial increase:

• Up until April 2009, they will be able to make a payment in lieu of the additional 4 days’ holiday entitlement which will be introduced on 1st October 2007.
• After April 1st 2009, payment in lieu will be limited to on the termination of employment.

However, if you already provide your employees with 28 days’ holiday by October 2007 you will be exempt from the new regulations.

Other Considerations

• Additional holiday can be inclusive of bank holidays. Therefore, if you already offer your staff 20 days’ holiday plus 8 bank holidays you are already meeting the increased statutory minimum holiday entitlement.
• Holiday can be carried over to the following year by written agreement of both the employer and the worker.
• Part-time workers will be entitled the additional leave on a pro-rata basis.