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Holiday Pay increases from 1 April 2009
07/03/2009
Tyas & Company, Chartered Accountants to businesses in Crawley, Horsham, Gatwick, East Grinstead and Sussex and Surrey generally.
The current statutory holiday entitlement of 24 days (4.8 weeks) for a full time worker meaning generally a five-day week is increasing. From 1 April 2009, full time employees are entitled to 28 days (5.6 weeks). This is a minimum entitlement, so you can offer more.
For part-time workers, holiday entitlement is worked out on a pro-rata basis.
Any days off for public or bank holidays can be counted towards a worker’s statutory holiday entitlement as long as it is paid leave.
You are currently allowed to pay workers in lieu of them taking their full statutory holiday entitlement. However, workers must take a minimum of four weeks’ holiday in each leave year.
From 1 April 2009, payment in lieu of statutory holiday entitlement will not be permitted. The carry forward of statutory holiday entitlement to the next annual leave period is also prohibited. Payment in lieu of any leave above the statutory entitlement or the facility to carry the excess forward is still allowed depending on the employment contract.
As workers are entitled to an extra 0.8 week’s holiday from 1 April 2009, if their next or current leave year begins before 1 April 2009, you will have to recalculate your workers’ statutory holiday entitlement based on the number of months in the leave year falling after 1 April 2009.
As the increase in holiday is a beneficial change in the terms and conditions of employment for the worker, there is no need to reissue contracts. However, you do need to let staff know about the increased entitlement in writing, eg through a staff letter.
The government website www.businesslink.gov.uk includes a template letter, example staff notice and model paragraph for an employment contract that can be edited and used to inform workers. It also includes a helpful calculator.
Tyas & Company, Chartered Accountants, Crawley, West Sussex
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