The problem
One of your employees wants to know whether she is entitled to take the day off on a bank holiday, and if required to work on a bank holiday, whether she is entitled to extra pay or time off in lieu?
Expert Advice
Although many workers take time off on bank holidays, an employer is not required by law to allow a worker time off work on these days. Nor do UK workers have the right to be paid a special rate for working bank holidays. In addition, employers may include bank holidays and other statutory holidays in the minimum entitlement, currently four weeks.
Any right to time off, a day off in lieu or extra pay on bank holidays depends entirely on the terms of a worker's contract of employment. Often a contract will explicitly lay down how many weeks holiday a worker may take and whether or not this includes bank holidays. Many employers add statutory holidays to the minimum entitlement. The contract of employment may give the worker the right to extra pay or a day in lieu instead of time off work.
Even when entitlements are not explicitly written down, they may sometimes be incorporated into the worker's contract by custom and practice. For example, if the contract of employment does not say in writing that the worker can take bank and public holidays in addition to leave, a worker may still have this right if it is usual practice for other employees to take time off on these days.
If full-time workers at the same place of employment are given paid leave for bank holidays in addition to the statutory leave entitlements under the Working Time Regulations, then part-time workers will be entitled to the same on a pro-rata basis, even if they do not usually work that day. As most bank and public holidays fall on a Monday, those staff who do not normally work that day could be disadvantaged. Best practice suggests that such workers should be given a pro-rata entitlement of days off in lieu according to the number of hours they work.
The law
Public holidays include bank holidays, holidays by Royal Proclamation and "common law holidays". Banks are not allowed to operate on bank holidays. When public holidays in the Christmas and New Year period fall on Saturdays and Sundays, alternative weekdays are declared public holidays.
There is no statutory entitlement to paid leave for public holidays. The Working Time Regulations 1998 specify that workers are entitled to four weeks' paid holiday, which is calculated by the number of days worked. For example, if a worker does a five-day week, he or she is entitled to 20 days' annual leave (four multiplied by five); if he or she does a three-day week, the entitlement is 12 days' annual leave (four multiplied by three). Under these regulations, paid public holidays can be counted as part of the statutory holiday entitlement.
In considering rights available to part-time workers, the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000 provide that such workers should not be treated less favourably than full-timers with regard to their contractual terms.
Check list
- Check your employment contracts to see whether any reference has been made to bank holidays.
- Check your records to ensure that all staff, including part-timers, are getting the same entitlements.
- Check customs of practice both in the industry and your organisation. If it is the norm to give a day off in lieu or pay time-and-a-half for working a bank holiday, then it may be implied into your workers' contracts.
Beware!
Many employment disputes arise from misunderstandings over holiday. Ensure that all your workers have contracts and that holiday entitlement is clearly laid out.
Contacts
Peter Moody or Rachel Kane at Tarlo Lyons
020 7405 2000
More general advice and guidance can be found on the Department of Trade & Industry website, www.dti.gov.uk