How do Bank Holidays affect your business?

With two bank holidays in May, do you know what your employees are entitled to in terms of leave and additional pay? Find out what your business is legally obliged to deliver to your staff in my latest blog.

What are workers entitled to?

All full time staff are entitled to a minimum of 28 days holiday a year. The eight bank holidays can be included in this, but not specifically on the bank holiday days. This is to reflect roles in industries such as catering, tourism and leisure, and emergency services personnel, where people have to work on bank holidays.

This means is that everyone who works full time get four weeks plus either bank holidays or time off in lieu for bank holidays they have to work. Of course, many people get better than the legal minimum, and it is common for people to be guaranteed all bank holidays off work in their contracts of employment

What does this mean for me as an employer?

As an employer, you can include bank holidays within the minimum annual leave entitlement of 5.6 weeks a year (28 days for a full time worker). Workers have a total holiday entitlement of four weeks (to meet the European minimum) plus eight days, the number of bank holidays enjoyed in most of the UK. There are 10 bank holidays in Northern Ireland.

Are employees entitled to additional pay if they work bank holidays?

Unless you have specified this in their employment contract, employees have no statuary right to additional pay for working on a bank holiday.

What does this mean for part time employees?

Part time employees are entitled to paid bank holidays if they normally work on those days. However, they are also have fewer statutory holiday days each year because they work fewer hours.

If you give your workers additional time off for bank holidays, in additional to their minimum 28 days, this should also be given pro rate to part time staff, even if they do not usually work on bank holiday days.

Most of the UK’s bank holidays fall on a Monday or Friday. Part-time employees who don’t usually work on these days may receive proportionately fewer days leave than their full-time colleagues, so to prevent this inequality you may want to consider pro-rata bank holiday allowance. This is calculated based on the number of days worked, regardless of which day of the week is worked and irrespective the bank holidays.

If you are finding bank holiday entitlements confusing, contact me today to find out how HR That Helps can help you




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