Increase in Statutory Leave Entitlement

From 01 October 2007 an employee's annual holiday entitlement is increased from 20 days to 24 days (for those working a 5 day week).  Part-time workers must receive annual leave equal to 4.8 times their usual working week, regardless of what days of the week they usually work.

Employers should note that this can include time off given to employees in respect of bank and public holidays.  All clients signed up to our Employment Year Service will be contacted with details of any amendments to their employment documentation that are required in light of the upcoming changes.

Annual leave may not be replaced by a payment in lieu, save where the worker's employment is terminated or in respect of any holiday entitlement over and above the minimum entitlement required by law.  Therefore an employee has no right to be paid in lieu of unused holiday entitlement, except on termination of employment.  Likewise, an employer that seeks to pay an employee in lieu, rather than allow them to take their holiday in a given leave year, will breach the Regulations.

Please note that special arrangements apply to agricultural workers (under the latest Agricultural Wages Order).

Holiday entitlement and holiday pay remain complex areas that change regularly.  For further information please feel free to contact Alistair Latham or Mark Daubney.

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