February 2007

Minimum Holiday Entitlement Set To Rise

Jim Fitzpatrick, Employment Minister, has announced the government's proposal to increase workers' holiday entitlement from 20 days per year to 28.

Research has shown that up to six million workers would benefit from an extra eight days holiday each year under the plans. Currently some employers include the eight bank holidays as part of workers' 20 day annual leave entitlement. This minimum entitlement is pro-rated for part time workers.

The DTI is planning a second public consultation on the implementation of the changes. The proposal is to increase the statutory annual leave entitlement in two stages, rising from 20 to 24 days on 1 October 2007, and from 24 to 28 days on 1 October 2008.

The DTI has already consulted widely on the increase and has sought the views of business and trade bodies. The cost to business is expected to be around 0.4% of the wages bill.

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