Working Hours – Paid Holiday Entitlement

Last Updated
July 20, 2010
  • An employee is entitled to 5.6 weeks paid annual leave and this begins from day one of employment.
  • Should your business work holiday from a specific date in the year, a new employee is entitled to their annual leave on a pro-rate basis from their start date until the date specified.
  • This entitlement works out as 28 days annual leave for an employee working a five-day week.
  • Employees who work part time are entitled to the same annual leave on a pro-rata basis.
  • This entitlement can include Bank Holidays and public holidays.
  • This entitlement is not in addition to any annual leave given to an employee under an employment contract.

Unused holiday

  • An employee must take a minimum of four weeks’ holiday each year (out of their 5.6 week entitlement).
  • Employees who work part time must take the minimum four weeks on a pro-rata basis.
  • You can’t make payments in lieu for any unused holiday for the 1.6 week’ s above the four week s.
  • You can allow an employee to carry over the 1.6 week’ s holiday entitlement of unu sed holiday from the current leave year until the next. Outstanding statutory paid holiday must be taken by the end of the next leave year.
  • You can make payments in lieu for any leave above the 5.6 weeks if stated in the employee’s contract.
  • Employees must receive their holiday pay at the time the holiday is taken. It must not be paid as an allowance spread over the year.
  • If an employment contract is terminated, you must pay the employee for unused holiday.

Bank Holidays & public holidays

Each year, the UK has eight national holiday days, which are called Bank Holidays and public holidays.
An employee is not entitled to a day off on these days.
You do not have to pay an employee extra money to work on these days. Bank Holidays and public holidays can be included in an employee’s holiday entitlement.

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