Holiday pay has changed a lot on the last few years. .
Minimum holiday entitlement is covered by the Working Time Regulations (“WTR”). Since 1 April 2009, annual entitlement for a five day a week worker is 28 days (5.6 working weeks) including bank and public holidays.
Even woman on a year’s maternity leave are still accruing holiday pay – since statutory holiday is accruing as long as a contract of employment exists – not just when work is being done. Anyone on long term sick leave may be in a similar..
Some employers pay holiday than the statutory minimum. The “extra” can be made subject to any non-discriminatory rules or conditions the employer wants to impose, but the ‘statutory’ element comes with some conditions that cannot be altered.
Part time workers
Part timers now get an allowance (pro rata) for bank holidays as part of their “5.6 working weeks”, even if they wouldn’t be working on that day anyway.
Temps and trainees
Temporary workers and trainees accrue WTR holiday (unless the trainee is on work experience placement from a college or on a sandwich course).
School age workers
Children below school leaving age (who have jobs such as paperboys) do not accrue WTR holiday – up to that point their ‘time off’ rights are covered by the Children and Young Persons Act 1933.
It is the employer’s job to ensure the worker takes their leave entitlement during the year. The general rule is that statutory leave is used during the holiday year and may not be carried forward (or substituted for by money except when leaving during a holiday year).
So by early summer, the smart employer is having a look at who has booked which holiday – so we don’t end up with everyone wanting the last few weeks of the holiday year.