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We are all going on our summer holiday

The Issue



The summer holiday season is fast approaching and many will have more leave from this autumn since the statutory minimum entitlement to annual leave is due to increase by a total of 8 days in two stages from 1 October 2007 resulting from October 2008 in a statutory right to paid holiday of 5.6 weeks per year. This adds as paid statutory leave the 8 permanent bank and public holidays in Great Britain.

 The Consequences



From 1 October 2007 the statutory entitlement to paid holiday will increase in two stages:

  • from 4 weeks to 4.8 weeks on 1 October 2007; and
  • from 4.8 weeks to 5.6 weeks from 1 October 2008.
  • The changes will add cost for those businesses where the current practice is to give employees 4 weeks’ annual leave inclusive of bank and public holidays;
  • The entitlement only applies from this autumn and so holiday entitlement prior to 1 October 2007 is unaffected;
  • There will still be no statutory right for the time off to be taken on a public holiday - that will remain to be decided between a business and its staff. Where staff already receive four weeks’ leave in addition to paid bank and public holiday there will be minimal impact;
  • Statutory leave carry forward has been prohibited up to now. The Government is now considering allowing a carry forward but a minimum of 4 weeks’ holiday would need to be taken in every leave year. This is not yet implemented.


The Solution

Businesses should be proactive in implementing these changes and ensure that annual leave is managed properly.

  • Employment contracts should be reviewed and updated to take into account the increase to statutory holiday entitlement for both full and part timers and managers dealing with holiday
  • requests must be trained in the new rules and their transitional effect.
  • In businesses where the holiday year begins prior to 1 October, additional holiday entitlement will need to be calculated pro rata
  • e.g. in the period 1 October to December 2007: 1 extra day will be accrued
  • in the period January 2008 to December 2008: 5 extra days will accrue

    (3 days from January 2008 to September 2008 and (with the second stage of the increase) 2 days from October to December 2008).



Information in this e-alert is a guide only. We recommend that you seek professional advice before taking or refraining from any action. No liability accepted by the firm for any action taken or not taken as a result of this publication.