Increased Holiday Entitlement - September 07
Since October 1998 with the introduction of the Working Time Regulations all workers have been entitled to at least 4 weeks paid holiday each year (which can be inclusive of bank and public holidays).
The Government are now proposing to increase this minimum entitlement up to 5.6 weeks paid holiday for all workers. This increase will become effective in 2 stages.
The first stage will be on 1 October 2007 when the amount of paid leave entitlement will increase from 4 weeks to 4.8 weeks (or 24 days for full time staff).
It is anticipated that the second stage will take place in April 2009 when the entitlement will rise to 5.6 weeks (or 28 days for full time staff).
Any paid time off for bank and public holidays can be included in this entitlement; therefore, employers who currently give staff at least 4 weeks holiday plus time off for bank holidays will not need to increase their entitlement.
However, any employers who have holiday policies which are less generous than these new requirements, will need to increase the amount of paid holiday which their staff is entitled to. This should be done proportionately for the remaining holiday year from 1 October 2007.
As a temporary measure, to help with transition, employers who currently allow their employees to take less than 4.8 weeks holiday will be entitled to make a payment in lieu of the additional holiday entitlement until 1 April 2009. From 1 April 2009 the normal law will apply whereby payment in lieu for untaken leave can only be made on termination of employment.
Alice Reeve, Partner and Emilie Darwin, Assistant solicitor, Employment
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