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Legal Matters: Paid holiday entitlement to increase from April

Employees’ spirits look likely to lift when new holiday laws come into play on 1 April. Those who work five days a week will be entitled to a minimum of 28 days’ paid leave. Fergal Dowling, head of employment law at Irwin Mitchell, reports.
Legal Matters: Paid holiday entitlement to increase from April
A NUMBER of businesses have shed staff in response to economic conditions. This has a tendency to increase pressure on the remaining workers who may find it harder to juggle their work-life balance.

They will no doubt welcome the news that statutory paid holiday entitlement will increase from 4.8 weeks to 5.6 weeks as of April 1, equating to 28 days for those who work a five-day week.

The entitlement can include public and bank holidays, is worked out on a pro-rata footing for those who work part-time and capped at 28 days. It also applies not only to direct employees but to agency and casual staff.

Some employers allow employees to carry unused holiday over into the next year. However, it should be remembered when engaging in such arrangements that workers must take a minimum of four weeks' leave in any one working year and that the holiday which was carried forward cannot then be moved again into the following year.

The regulations relating to payment in lieu will change from April 1 too, prohibiting the practice in relation to the statutory entitlement, although any holidays above and beyond that level may be exchanged for payment if the worker's contract allows. While there may be no need to change employees' contracts with regards to holiday entitlement, employers have a duty to inform workers in writing of the holiday changes.

Employers can determine a blanket date upon which their leave year begins or they can choose different start dates for individual workers. Employees are required to advise bosses in advance of when they intend to have a holiday. The length of advance warning demanded of employees should be agreed with employees and available in writing, possibly as part of their contract of employment.

However, in instances where there is no such written undertaking, the employee should give notice of intention to take leave of at least double the length of the length of their holiday.

Bosses may, of course, turn down the request for holiday but it must be reasonable to so do. It could be that there are restrictions in place such as contractual terms of employment, specified times when holiday may not be taken or shut-downs for pre-agreed times, for example at Christmas.

Employers can enhance performance and productivity by creating a working environment that is sensitive to the work-life balance needs of workers. Those organisations that have developed practices allowing for work-life considerations enjoy benefits including improved staff retention, lower levels of absenteeism and enhanced reputation.

Employers often declare the people are the most important asset of the business. I therefore hope that they regard the changes in April as a legislation which goes some way to addressing the work-life pressures of employees.

Call 0870 1500 100 or e-mail fergal.dowling@irwinmitchell.com
1 February 2009

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