From 1 October 2007, the statutory holiday entitlement will increase from 4 weeks to 4.8 weeks (24 days, if you work a five-day week). From 1 April 2009, a further increase to 5.6 weeks (28 days, if you work a five-day week) will take effect.

If you are an employer, you will need to notify your staff in writing of any increase in holiday entitlement. You could do this through a letter to staff or by a statement on pay slips, for example.

Bank holidays

Paid time off does not legally have to be given for public holidays, and if it is it can be included in your workers' minimum leave entitlement.

Do I already comply?

If you already offer your employees at least 28 days of annual leave, you already comply. For part-time employees, holiday entitlement is calculated on a pro rata basis and cannot be replaced by a payment in lieu. Any unused holiday above four weeks (the first four weeks cannot be carried over) may only be carried over into the following leave year.

If you already meet the requirements, you need take no further action at this time.

Calculating holiday entitlement

Staff will be entitled to the additional holiday from 1 October 2007. Depending on the employer's leave year, staff will be entitled to 0.8 weeks of additional holiday, multiplied by the proportion of their leave year left to run after 1 October 2007. So, if an employer's leave year runs from 1 January to 31 December, staff will be entitled to three months' worth of the additional annual entitlement, which equates to an additional 0.2 weeks.

As the entitlement to statutory annual leave is capped at 28 days, staff working six days a week will be entitled to 28 days from 1 October 2007. See the ‘Ready Reckoner' [link to RR on a separate page on the website].

Part-time workers

For those working part time, regardless of what days they work, the increase should be calculated pro rata. So, if a member of staff works four days a week in a leave year beginning on or after 1 October 2007, s/he will be entitled to (4 x 4.8) 19.2 days. If s/he works three days a week, s/he will be entitled to (3 x 4.8) 14.4 days.

Part days

Although part days cannot be rounded down to the nearest full day, they do not need to be rounded up to the nearest full day.

Staff may want to carry over unused holiday from the current leave year to the next. This is only allowed for any entitlement above the four week minimum. Outstanding holiday above four weeks can be carried over if you and the worker agree.

You may offer payment in lieu of taking any remaining holiday at the end of a leave year. Currently, this is only allowed for contractual entitlement above the statutory four-week minimum. As a temporary measure, payment can be given in lieu of the additional days introduced on 1 October 2007 (four days for those working a five-day week). From 1 April 2009, payment in lieu cannot be provided for anything less than 5.6 weeks (28 days for those working full time).