As a temporary measure, employers will now be able to pay their workers in lieu of holiday for the initial increase. Until 31st March 2009 employers will be able to make a payment in lieu of the additional four days holiday entitlement which is to be introduced on 1st October 2007. From 1st April 2009, however, payment in lieu of holiday will only be permitted on the termination of employment.
If employers currently give their staff fewer than 28 days annual leave, increases will have to be made – the timing depends on the current contractual entitlement and when the employer’s annual leave year begins. Part time workers will be entitled to the additional leave on a pro-rata basis.
Employers who already provide their employees with 28 days holiday by October 2007 (with any payments in lieu applying only 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.
It will still be possible during the first year of service for leave to accrue on a 1/12 basis on the first day of each month, if the employer wishes to allow holiday to accrue in that way. If the calculation of annual leave results in a proportion of a day, the amount of leave is rounded up to the next half day. If a worker ends up with a fraction of a day as a result of the calculations at any other time during the employment, there will be no obligation on an employer to round up the fraction to a half or a full day, although an employer could choose to do so for convenience. |
