Barrister Charles Price outlines what the employer should pay now that minimum holiday entitlement has increased from 20 to 24 days a year.
As from 1 October 2007, workers must have had their belief in a benevolent deity confirmed, as the government handed all workers a gift which previously only belonged to senior employees or those with forward thinking employers; namely, more holiday. On this date, the working time regulations boosted the minimum holiday entitlement for most full time workers from 20 days a year to 24 days, and to 28 days from April 2009.
Under law in force before 1 October 2007, almost every worker had the right to four weeks’ paid holiday per year, or pro rata – so, for example, a full-time worker who works five days a week is entitled to a minimum of 20 days’ paid holiday per year; and a worker who works three days a week is entitled to 12 days’ paid holiday per year.
The 2007 increase takes place in two stages: (i) from four weeks to 4.8 weeks from 1 October 2007, and (ii) from 4.8 weeks to 5.6 weeks on 1 April 2009.
A full-time worker who works five days a week will thus be entitled to a minimum of 24 days per year from 1 October 2007 and to 28 days as from 1 April 2009.
The change is phased in on a pro rata basis from 1 October 2007 so, for example, an employee whose leave year begins on 1 April will have a holiday entitlement of:
- 4.4 weeks in the leave year April 2007-March 2008
- 4.8 weeks in the leave year April 2008-March 2009
- 5.6 weeks in the leave year April 2009-March 2010 and thereafter.
So what happens when the contract offers more pay than the working time directive and the new increase? As far as settling claims go, it should be remembered that if the employee’s contract specifies a holiday allowance greater than that offered in the working time regulations, then the contract terms prevail.
Therefore, if the contract terms are less that the amount specified in the ‘regulations’ then the latter take precedence. Note: it will be possible, if employer and worker agree, for the new additional holiday to be carried forward and that part days’ holiday entitlement will not be rounded up.
Bank holidays
In May 2005 the government announced plans to provide that bank holidays would cease to be counted against the entitlement to four weeks’ paid holiday. This proposal was later dropped and replaced by a proposal to increase from 20 working days to 28 working days the current basic statutory annual holiday entitlement for full-timers, and pro rata for part-timers.
This may have had something to do with the fact that different sections of the community have their own religious days and problems may arise if a Christian is entitled to his/her religious days holiday but a Muslim is not entitled to his/hers.
There is no statutory right to holiday, with or without pay, on bank or public holidays. However, many workers are entitled either to paid leave or to overtime rates of pay on bank and public holidays either under customary arrangements, which may be implied in terms of contract, or express contract provisions. If express contract terms are ambiguous, the courts will look to see how the contract has been operated in the past.
For more information, please visit
www.charlesprice.net
