May 2007

Minimum Holiday Entitlement to Rise

A few months ago we reported on the proposal by the Department for Trade and Industry (DTI) to increase the minimum statutory holiday entitlement from the current 20 days (including bank holidays) to 28 days (bank holidays inclusive). The DTI have been consulting with interested parties and should shortly publish the findings of their consultation.

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.

If, as expected, the proposal becomes law employers will have to increase holiday entitlements from 1 October 2007 for the four days increase from 20 days to 24 days. This may not coincide with the employer’s holiday year and it will have to be awarded proportionally from 1 October.

To give an example an employee currently entitled to the statutory minimum entitlement of 20 days (including bank holidays) with a holiday year to December 2007 would be entitled to one additional day for the three months covered by the increased minimum entitlement from 1 October 2007 to 31 December 2007. (four day annual increase from 1 October 2007 pro rated for three months).

Internet Link:

DTI press release