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CM’s legal guide in association with XpertHR Small Business
How much paid holiday are workers entitled to take?
Under the Working Time Regulations 1998, workers are entitled to a minimum of 5.6 weeks’ paid annual holiday. Employees may be entitled to contractual holiday entitlement in excess of this statutory minimum.
Can unused statutory annual holiday be replaced by a payment in lieu?
No, statutory holiday entitlement under the Working Time Regulations 1998 may not be replaced by a payment in lieu, except when the employment is terminated.
Can bank holidays be included in a worker’s statutory leave entitlement?
Yes, the minimum 5.6 weeks’ annual leave may include bank and public holidays. But there is no statutory right for workers to have bank holidays off work.
What are part-time workers’ rights to paid holiday?
Like full-time workers, part-time workers are entitled to 5.6 weeks’ paid annual holiday.
The number of days or hours that this 5.6 weeks’ statutory holiday entitlement constitutes will vary depending on the number of days or hours that a part-timer works. For example, a worker who ordinarily works only three hours a day on Monday and Tuesday will be entitled not to come to work for those six hours a week for 5.6 weeks, whereas a worker who works from 9am to 5pm four days a week will be entitled not to come to work for those four days for 5.6 weeks.
Can workers take holiday whenever they like?
No. In the absence of any arrangement or agreement to the contrary, a worker must give notice equal to twice the length of the holiday that he or she wishes to take. The employer can give counter notice requiring that the leave not be taken, so long as this counter notice is equivalent to the length of the holiday requested, and the worker is not prevented from taking the leave to which he or she is entitled in that holiday year. Employers can also require workers to take leave at particular times, such as over the Christmas period or during an annual workplace shutdown. The employer must give notice equal to twice the length of holiday that it wishes the workers to take.
During their first year of employment, the employer can require that workers take only that portion of their full 5.6-week entitlement to minimum paid annual holiday that has accrued due to them at the relevant time, calculated monthly in advance.
Does an employer have to pay holiday pay to its casual workers? Yes. Every worker (whether an employee or otherwise) is entitled to 5.6 weeks’ paid annual holiday, and (as is more likely, given the shortterm nature of casual workers’ engagements) accrued holiday pay on termination, calculated from day one of their contract.
Will an employee who has resigned or been dismissed accrue holiday during his or her notice period?
Yes, workers should be paid for any outstanding part of the statutory entitlement to annual leave on termination of employment. A period during which an employee is working out his or her notice is a normal period of employment for this purpose. In other words, holiday entitlement for the employee’s final part-year of employment should be calculated up to the end of the period of notice that he or she works.
For the purpose of any contractual holiday pay granted by the employer that is in excess of the 5.6 weeks’ holiday required by the Working Time Regulations 1998, payment for any outstanding holiday on termination will depend on the employee’s contract of employment and any policy or rule that is incorporated into the contract. In the absence of a policy or rule to the contrary, contractual holiday pay should be calculated in the same way as statutory holiday pay – based on the total period of employment through to the end of the employee’s notice period.
● For answers to more questions on holiday entitlement, visit www.xperthr.co.uk/faqs