Buddy Says:  Yes, the Government is planning to increase the statutory annual leave entitlement from 20 to 24 days for full-time workers from 1 October 2007. A second increase in the entitlement from 24 to 28 days will follow on 1 April 2009.

Employer info:

On 12 June 2007, the Government published its response to the consultation on ‘Increasing the Holiday Entitlement’ (for a full response see http://www.dti.gov.uk/files/file39592.pdf). 

Draft Regulations on the increase in holiday entitlement were laid in Parliament on the same day, however, they have not yet been published.

In short, employers shall not be bound by the changes coming into effect if they:

• Already give their workers at least 28 days’ leave a year prior to 1 October 2007;
• Only pay workers in lieu of any unused holiday in holiday in excess of 28  days’ leave; and
• Allow any carry over of leave of between 20 and 28 days only into the following year.

Any time off for bank holidays can be included in the additional entitlement (therefore if you already give employees four weeks’ annual leave plus the bank holidays, your employees holiday entitlement will not increase).

Part-time workers will also be entitled to the extra holiday on a pro-rata basis.

The DTI is currently setting up an online calculator to work out holiday entitlement which should be available shortly (www.dti.gov.uk). This will assist greatly in calculating proportionately holiday entitlement during October 2007 and April 2009 depending on when an employee’s annual leave year starts.

For example, if an employee’s leave year started in April 2007, they work a 5 day week and currently receive 20 days including bank and public holidays, the employee will be entitled to 2 additional days from October 2007 to March 2008.