UK Holiday Entitlement
Most employers and employees know that the statutory holiday entitlement is 28 days or 5.6 weeks per year.
The holiday year can be decided by the Company and may run in line with the calendar year, financial year or some other arrangement.
The 5.6 weeks is split into 20 days normal leave inherited from the European Working Time Directive and 8 days of additional UK leave, these being the 8 bank / public holidays. The term bank holiday and public holiday are often used interchangeably.
The statutory holiday entitlement applies to all workers covered by the Working Time Regulations. This means a person who has entered into or works under a contract of employment or any other contract, whether expressed or implied, verbally or in writing where the individual undertakes or performs work or services for another party who is not a client.
It is the employer’s responsibility to ensure that all statutory leave is taken within a 12-month / 1 year period. New joiners to a Company accrue holiday from day one and are entitled to a pro-rata amount of the 28 days statutory holiday.
In the UK the 8 bank /public holidays days are: Good Friday, Easter Monday, Spring Bank Holiday, May Day, Late Summer Holiday, Christmas Day, Boxing Day and New Year’s Day. If Christmas Day, Boxing Day or New Year's Day fall on a weekend then a substitute day is awarded.
Whilst the employee has a statutory right to 28 days holiday, they do not have a right to time off on a bank or public holiday so long as these days are scheduled to be taken at some other point within the holiday year.
There are sanctions for the employer if they provide or allow less than the statutory minimum holiday and these include:
From a tribunal, compensation awarded to the employee at an employment tribunal and declarations that workers’ rights have been in fringed.
From the Health and Safety Executive (HSE) enforcement measures to include improvement notices, unlimited fines and imprisonment.
Civil claims for breach of contract or negligence.
Calculating holiday and holiday pay can be complex. Employers are legally allowed to pay holiday at different rates; however, any employer varying rates are advised to do so with caution and ensure that this is an explicit term written into the contract of employment.
The two different rates are paying a normal rate of pay for the 20 days of normal leave and a basic rate of pay for the 8 days of UK additional leave. Normal pay would include such like as overtime and bonus.
From April 2024, all part year workers or irregular, zero-hour workers holiday pay is calculated at 12.07% of actual hours worked in any pay period and either paid when the individual takes holiday or rolled-up and paid at the time of normal salary payment.
If you would like assistance with holiday calculations, writing a policy or require any HR advice or guidance please contact SOS-HR 01473 276170 or email us at soshr@sos-hr.co.uk