Holiday pay

Without intending to teach anyone to suck eggs, thought this might be helpful for anyone in England or Wales, operating an April – March holiday year, as 2018/19 might need action from you

As you know, all workers are legally entitled to 5.6 weeks minimum paid annual leave. For an employee working a five-day week, this = 28 days’ holiday. Contractually, we usually state either 20 days plus bank holiday or 28 days including bank holidays

(If you already give more to employees (for example 25 days plus bank holidays) you don’t need to do anything)

In 2018 Easter is split between March and April; Good Friday is on 30 Mar and Easter Monday on 2 Apr. If you have a holiday year running 1 Apr 2018 – 31 Mar 2019 this means you will not have a Good Friday BH because it falls in the 2017/18 holiday year

So, staff with a holiday entitlement of ‘20 days’ plus bank holidays’ will only be CONTRACTUALLY entitled to 27 days’ holiday in 2018/19—crucially, this is of course one day short of the legal minimum

If this is you, what do you need to do? As a minimum, you MUST give 5.6 weeks’ holiday. To avoid breaching your employee’s rights, you must top up your staff holiday entitlement for the 2018/2019 holiday year

And what about the 2017/18 holiday year? For the same reasons, folk with Apr-Mar holiday years might receive an extra day’s holiday in March 2018, giving 9 bank holidays in total for this holiday year – but it hangs on what your contracts say.

Option 1: Where your contract states the employee is entitled to ‘20 days’ plus eight bank holidays’ and LISTS the specific eight bank holidays, there will be no right to take the second Good Friday bank holiday

Option 2: Where your contract states ‘20 days’ plus bank holidays’ but doesn’t list or give a number to the bank holidays, your employees will be entitled to 29 days’ holiday in the 2017/18 holiday year

Option 3: Where your contract has an absolute contractual holiday cap of 28 days, holiday will be unaffected

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