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We're all going on a summer holiday...
Page 24
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All. UK employees are now entitled to 28 days paid leave. But if weekly pay varies, how should holiday pay be calculated?
Words: Gareth Edward'
Many employers seem confused over the amount of holiday they need to give employees — and this is set to get worse because the law has just changed.
The minimum amount of holiday that an employer must give to employees was initially increased on October 2007 when the Working Time (Amendment) Regulations 2007 came into force. Previously, employees working a five-day working week were entitled to a minimum of 20 days' paid holiday each year. As of 1 October 2007, this increased to 24 days per year. It was further raised on 1 April 2009, to 28 days. Employees now have the benefit of the eight days of public holidays to which there was previously no statutory entitlement.
Implementing the changes
Previously, the additional leave entitlement could be replaced with a payment in lieu. However, since I April 2009, this is now prohibited, except for termination of contract. It is nevertheless possible for employers to agree with employees that the additional leave entitlement may be carried forward into the next holiday year.
Setting out holiday rights
Employers should set out in writing the arrangements relating to holiday when an employee starts work, including: details of the employer's holiday year, the amount of holiday entitlement, and the amount of holiday pay. Enough details should be supplied to enable an employee's entitlement to be precisely calculated, including their entitlement to accrued holiday pay on termination of employment.
The holiday year
An employer can specify the dates of its holiday year. If it does not, then an employee's leave entitlement is calculated either from the date on which they started working for the
www.berr.gov,uk/whatwedol employer, or, for employees already employed employment/holidays on or before October 1998, from 1 October.
Bank holidays
Although the recent statutory changes to holiday entitlement are designed to allow employees to benefit from the eight bank holidays, there is no entitlement for taking holiday on these specific days and an employee can be required to work on bank holidays.
Accumulating leave
In the first year of an employee's employment, employers are entitled to use an accrual system, whereby they total up how much leave an employee will build up during their first year of employment:This is then accrued monthly in advance at the rate of one twelfth of the annual entitlement.
Applying for leave
Employees must give notice to their employers if they wish to take holiday; this must be twice as long as the period of leave requested. The employer can refuse permission by giving counter notice at least as long as the leave requested.
Restrictions on taking leave
Employers can elect to specify particular dates when employees are expected to take annual leave; or they can determine the maximum amounts of leave that can be taken on any one occasion, and when the leave may be taken. Any such restrictions must either be expressly stated in the contract of employment, implied from custom and practice, or incorporated into individual contracts from a collective agreement between the employer and trade unions. •
0 Gareth Edwards is a partner in the Employment Department of Veale Wasbrough Lawyers.