24th January 2007

INFORMATION
UPDATE

 Issue No.  2007/03

 Sentient
              

 

INCREASE IN STATUTORY MINIMUM HOLIDAY ENTITLEMENT

Changes to the Statutory Minimum holiday entitlement are on the way and the implications for employers are potentially very costly.

Current Position
The Statutory minimum entitlement is 4 working weeks. For someone working 5 days a week, this equates to 20 days. Bank holidays can be included within this entitlement.

Proposed Increases
1st October 2007, the working weeks holiday entitlement will increase to 4.8 working weeks entitlement
(or 24 days for someone who works 5 days a week)

1st October 2008, the working weeks holiday entitlement will increase to 5.6 working weeks entitlement
(or 28 days for someone who works 5 days a week)

Implications
If you presently offer all your workers 4 working weeks PLUS 8 bank holidays or greater, these Regulations will not affect you.

However, if you offer 4 working weeks holiday INCLUDING bank holidays, (ie for a worker on a 5 day week less than 28 days including bank holidays), you will be affected by these Regulations, and you need to think about the following:

  • Who is affected.
  • Planning the implementation – you will be required to notify the affected workers in writing of the change to their terms and conditions of employment, and at the latest this should be done by the end of August, (i.e. giving one month notice of the change.)
  • The impact on cost/budgeting. The fact that you will be paying for workers to be on additional holidays result in additional costs incurred, e.g. covering the increase in holiday absence by increased cost of temp staff, overtime of existing workers, etc. This will impact on your financial planning during 2007 and 2008.
  • Whether your holiday conditions need changing as a result of the increased entitlement. Are your existing holiday conditions/rules sufficient or do they need reviewing due to the increased entitlement? We will of course be looking at this for all current “employment” clients.
  • Work planning/forecasting: With workers taking more holiday, you may need to plan ahead with regard to work planning and forecasting.

For advice on any of the above, please do call 08456 446 006


 

 

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