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Extension to holiday entitlement comes into force
Changes to minimum holiday entitlement, which came into force on 1 October 2007, will have a major impact on retailers.
The new rules will bring the UK closer to its European counterparts and will extend workers' rights to a minimum holiday entitlement under the Working Time Regulation 1998 from 20 days to 28 days per annum.The change in holiday entitlement is, according to the Department for Business Enterprise and R
egulatory Reform (formerly the DTI), set to benefit up to six million workers. For employers, the expected benefits are set to be reduced absenteeism and a more motivated and productive workforce.Audrey Williams, employment law partner at Eversheds, comments “The majority of employers do allow workers to take their bank holidays, or days in lieu, in addition to the four weeks annual leave provided by European law under the Working Time Regulation. However, there are still a significant number of workers who don't have this right as some employers include the eight bank holidays as part of their workers' 20-day annual leave entitlement. Compared to our European neighbours, the UK is lagging behind in terms of holiday provision and it was inevitable that the playing field would be levelled at some point.
“The increase will take place in two stages, 1 October 2007 the statutory annual leave entitlement will rise from 20 to 24 days and then on 1 April 2009 from 24 to 28 days. For retailers, this could have a major impact, particularly where workers are often required to work on traditional bank holidays. Workers who ordinarily work on bank or public holidays will continue to do so, provided they are offered days in lieu and get 28 days, or pro rata, in a holiday year.”
For five-day-a-week workers, the proposal will eventually mean eight extra days leave a year, but it will be up to the employer to decide whether those days are the bank holidays or not. For retailers, it will mean extra planning of work rotas and retail employers should communicate precisely what these new rules mean to their staff i.e. it does not give staff the automatic right to the actual bank holiday dates, just to the extra eight days at times to be agreed and governed by the contract of employment or holiday policy.
“There is no doubt there will be an impact on those sectors, such as retail, where wage costs are already tight, but the plans to phase in the additional holiday gradually in October this year and then 1 April 2009 should help retailers to plan ahead and to adjust over time.”
Tagged as: employment law | retail | retailing |
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