Changes To The Minimum Entitlement For Holidays

On 1 October 2007 the Government brought in the first of a two stage change in the rules relating to holiday entitlement. 

From 1 October 2007 onwards a full-time worker will be entitled to a minimum of 24 days holiday, including Bank holidays.  A part-time worker will be entitled to pro-rata leave entitlement.  The Department for Business Enterprise and Regulatory Reform (DBERR) has published a ready reckoner for calculating holiday entitlement in respect of part of a holiday year. Broadly when calculating untaken holiday leave for the purpose of payment in lieu, the minimum entitlement will be calculated at the rate of 2 days per complete month of service.  When actually calculating such entitlement the rules should be considered in order to take into account the holiday year, the commencement date and transitional provisions or advice should be taken.  

The second stage to the changes will occur on 1 April 2009 when the minimum entitlement will increase to 28 days including Bank holidays.

Originally the second stage was to take effect from 1 October 2008, but it has been delayed to 1 April 2009 following consultations. 

Unless a holiday year happens to commence on 1 October then increases in entitlement from 1 October 2007 will be calculated by reference to the proportion of the holiday year which post dates 1 October 2007.  The on-line calculator which DBERR provides will assist in calculating entitlement and DBERR have published an example of how the increased entitlement will apply in these circumstances as follows:

“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”.

Happy calculating!

For further advice call Nigel Pepper or Patrick Nelson on 01785 211411.

Hand Morgan & Owen – Employment

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Telephone: 01785 211411  

This article is for the purpose of general awareness only and the law may have changed since it was originally published.  It does not constitute legal or professional advice and readers should not act on the basis of the information included.  Readers should take appropriate advice upon their own particular circumstances.