If your company is based in England or Wales and you run your holiday entitlement from 1st April to 31st March, 2018-19 is going to present you with a problem. Most companies’ employee holiday entitlement is 20 days plus 8 days paid bank holidays, equalling 28 days paid holiday leave. However, because of the way Easter falls in 2019 there will only be 7 bank holidays between 1st April 2018 and 31st March 2019, leaving a shortfall of one day.
What does this mean for employers?
For employers offering the statutory minimum holiday entitlement of 28 days then technically they will have to give an extra day’s holiday allowance. If the employer provides more that the minimum statutory allowance (i.e. more than 20 days plus 8 bank holidays) they will not need to give any extra days as they will still be over the statutory minimum.
Why is there a change in the number of Bank Holidays?
The problem has arisen because of the way Easter falls in 2018 and 2019. In 2018 Good Friday is on the 30th March and Easter Monday is on 2nd April. In 2019 Good Friday is on the 19th April. Therefore, there is no Good Friday holiday in the 2018-19 holiday year (which covers the period from 1st April 2018 to 31st March 2019). This means an extra day’s holiday needs to be given.
This does not affect employers whose holiday year runs from 1st January to 31st December or for Scotland and Northern Ireland as they have more bank holidays.
What is the Statutory Holiday Entitlement?
The Working Time Regulations 1998 stipulate that all workers (not just employees) should be entitled to 5.6 weeks (28 days) paid holiday per year if they work a 5 day week (part-time workers get a pro rata entitlement). The 8 bank holidays can be included by employers in this entitlement.
If overtime is paid sufficiently regularly to employees, this needs to be paid as part of their holiday entitlement. This means if overtime is worked regularly (i.e. 4 hours a week ) then when holiday is taken overtime that they would normally have worked needs to be added so that it reflects ‘a normal weeks pay’. In summary you must now include guaranteed overtime, commission and work-related travel allowances in ‘a normal weeks pay’ when an employee goes on holiday. This only needs to be paid for the first 20 days holiday allowance as this is classed as the EU statutory holiday entitlement.
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