legal updates
Monday, 09 Jul 2007
more (and then more) paid time off
CCW's Legal Update 9th July 2007
New draft Working Time Regulations have been published, providing that employees (working a normal 5-day week) will be entitled to:
- 24 days’ holiday from October 2007; and
- 28 days’ holiday from April 2009.
The DTI has estimated that 6 million workers (19% of UK employees) will benefit from these increases at a cost of £4bn per year to employers. However, HR specialists suggest that it will reduce absenteeism and increase job satisfaction through a better work-life balance.
Immediate impact
The increase applies immediately, and does not wait until the next holiday year. If your holiday year does not begin in October, the increase will be applied proportionately. If your holiday year begins in January, for example, and you currently have the minimum 20 days’ leave entitlement, you will be entitled to an extra day between October and December.
Remember however that this is only changing the minimum entitlement. If you already have more than 24 days’ holiday (28 in 2008) this doesn’t mean you get any more.
Part-time and atypical workers
The increase is proportionate for part-time and atypical workers. So those working 2.5 days per week are currently entitled to 10 days’ leave per year. Under the new law, they will be entitled to 12 days from October and 14 days from April 2009. Similarly, if you work 6 days per week, your annual entitlement will go up from 24 days to 28 (as the entitlement is capped at 28 days). There are also special rules that deal with those who work irregular hours.
What to do next…
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Check staff contracts to see what impact the changes will have. Some contracts may be worded in a way that gives employees extra holidays even if they are currently on 24 days or more already.
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Inform staff of how the changes will affect them. This will make it easier to schedule the extra days at suitable times in advance.
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Consider introducing a more stringent holiday approval policy to minimise holiday clashes. Bear in mind that any changes you make to cope with the new entitlement must be implemented in a legal way, and you should seek advice if you are unsure what this involves.
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Work out if the impact will require additional staff (or possibly temporary agency staff) to cover for those on annual leave.