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Mac Kotecha & Co.
Lichfield House
2 Lichfield Grove
London N3 2JP
Tel: 020 8346 0391
Fax: 020 8343 4227
E-mail:

mac.kotecha@virgin.net  (Mac)   anil.kotecha@virgin.net (Anil) priya.kotecha@virgin.net (Priya)

 

 

 

 

 

W39 - Payroll Issues – holiday entitlement?

Continuing in our series of questions linked to Payroll, we look at the changes to holiday entitlement.

The Department of Trade and Industry (DTI) announced on 12 June 2007 some changes to their original proposals to increase the annual leave entitlement for workers in Great Britain. The Working Time (Amendment) Regulations 2007 will still increase the statutory minimum holiday entitlement in Great Britain to 28 days but the timetable for implementation has changed.

The entitlement will be increased in two phases. The first phase takes effect on 1 October 2007 when the statutory annual leave (this can include bank holidays) will increase from 20 to 24 days (4 to 4.8 weeks). The second phase will be on 1 April 2009 when the leave will increase from 24 to 28 days (4.8 to 5.6 weeks – not 1 October 2008 as previously suggested by the DTI). The reason given by the DTI for the postponement is the consideration of cost, particularly on the health and social care sectors.

Employers who already provide their employees with 28 days holiday by October 2007 (with any payments in lieu only applying in respect of holiday in excess of 28 days and with any carry-over only being permitted to the following year) will be exempt from the new Regulations.

  • The statutory leave will be capped at 28 days.
  • The additional holiday can be inclusive of bank holidays. Therefore employers who currently offer their workers 20 days’ holiday plus 8 bank holidays will already meet the increased statutory minimum holiday entitlement.
  • Holiday can be carried over to the following holiday year by written agreement of both the employer and the worker.
  • Part-time workers will be entitled to the additional leave on a pro-rata basis.

At the time of going to press, the Department of Employment and Learning in Northern Ireland has announced that the increase in Working Time Regulations minimum holiday entitlement will be the same as England, Scotland and Wales. This will be 28 days maximum and the two dates for increase will be 1 October 2007 and 1 April 2009.

 

We take great pride in our service, and would be delighted to invite you for a free 1 hour, no obligation meeting at our comfortable offices. Simply call us  on 020 8346 0391 to arrange a mutually convenient time.

This web-site was last updated on 13/06/2008

Copyright © 2003-2008 Mac Kotecha & Company. All rights Reserved. The information on this site is for general guidance only. It is essential to take professional advice on specific issues about their impact on any individual or entity. No liability can be accepted for any errors or omission or for any person acting or refraining from acting on the information provided on this site.