18th March 2009


 Issue No.  2009/05



  Holiday Entitlement Increases – Reminder

Information Updates 2007/03 (24th January 2007) and 2007/18 (9th July 2007) (available on the website www.sentientuk.co.uk) reported on the Increases to the Statutory Minimum Holiday Entitlement. 
To remind you, the first phase, effective on 1st October 2007, increased the Statutory Minimum Holiday Entitlement from 4 working weeks to 4.8 working weeks (20 days increasing to 24 days).
The second phase of the Statutory Minimum Holiday Entitlement increase is due to come into force with effect from 1st April 2009
The Increase
From 1st April, the minimum annual holiday entitlement will increase to 5.6 working weeks (28 days for someone who works 5 days a week). 
Any time off for bank and public holidays can be included in the entitlement (e.g. if you already offer your workers 4 weeks' leave plus time off for 8 bank holidays, your holiday entitlement will not need to increase);
Pay in lieu of Holidays
Prior to 1st October 2007, it was not possible to make a payment in lieu of holidays except when the Employee left part way through a holiday year.  Between the transitional period (1st October 2007 and 31st March 2009), it was possible to make a  payment in lieu of the new additional holiday entitlement.  This was a temporary transitional measure to assist employers with implementation of the increases.  After 1st April 2009, employers will not be able to make payment in lieu of holiday except if an employee leaves part way through the holiday year.
Carry over of Holidays
With effect from 1st April 2009, some or all of the additional (1.6 weeks) holiday entitlement may be carried over to the following leave year with the agreement of both the employer and worker.
A few final reminders…
The increases from April 2009 will be calculated proportionally depending on when the holiday leave year starts.
There will be no qualifying period for the additional holiday entitlement and that partial days’ holiday need not be rounded up to the nearest full day.
The holiday entitlement will be calculated on a pro-rata basis for part-time workers (5.6 times their usual working week), regardless of whether or not they usually work on bank holidays.  E.g. a worker with a  3 day week will get 3 x 5.6 = 16.8 rounded up to 17 days of leave to cover all days of holiday including any that fall on a Bank Holiday.




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