August 2007

PUBLIC HOLIDAY INCLUSION IN ANNUAL LEAVE ENTITLEMENT

Public holidays as annual leave entitlement, in addition to a minimum statutory 20 days annual leave, the Regulations surrounding this have now been laid before Parliament.

As a result of the last round of consultation, some changes have been made to the draft regulations, including:

1. To delay introduction of the second increase from 24 to 28 days for a full time employee until 1 April 2009. The Government’s preferred approach in the January 2007 consultation had been to introduce half of the additional holiday entitlement from October 2007, and the remaining half from October 2008. On further consideration of the cost pressures, in particular for the health and social care sector, the Government proposes the later date. The initial increase will come into effect on 1 October 2007, as originally suggested;
2. To enable payment in lieu of the additional holiday entitlement the additional 4 days to continue until 1 April 2009. This is a temporary measure to help employers with transitional arrangements, such as recruiting and training any additional staff to cover the increased holiday entitlement; and
3. To provide an incentive for early compliance with the regulations, whereby employers that already meet the full requirements of the regulations as at 1 October 2007 (giving the equivalent of 28 days’ holiday, without payment in lieu and any carryover for no more than one year) will be taken outside of the regulations, as long as they continue to meet those requirements.