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BizHelp24 Edition No. 189
Thursday 14th June
2007

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June 2007 - Small Business News

 

Annual Leave – Be Ready for New Rules

If employees in your business receive less than 28 days holiday then you need to be aware of changes that are coming into force soon.

Six million workers in Britain will soon be entitled to up to eight extra days annual holiday with the first four coming in October this year. The extra holidays will benefit up to 3.5million women and 2.5million men.

The Government has published new regulations to boost the minimum holiday entitlement from 20 days a year to 24 days in October 2007, and to 28 days from April 2009.

Jim Fitzpatrick, DTI Employment Relations Minister said: "This extra time off will make a real difference in the lives of hard-working people - a proper rest from work and more time to spend with their families and friends.

"Businesses will benefit too - from reduced absenteeism and a workforce who are more motivated and productive.

"We have listened to all parties responding in the latest consultation, and we have agreed a number of changes in the way the new holidays will be brought in."

This means:

* To encourage early implementation and simplify arrangements for good employers who decide to offer their workers the entitlement faster, the regulations state that those companies who offer their workers 28 days leave or more by 1 October 2007 and meet certain other related standards will not be bound by the new legislation, so long as they continue to meet these standards.

* As a transitional measure, companies will be allowed to continue to buy out the additional leave entitlement (the four extra days) introduced from October 2007 until 1st April 2009.

* After 1st April 2009 the buyout of any of the additional leave entitlement will cease.

* All part-time workers will be entitled to the extra holidays pro-rata.

* The DTI will set up an online calculator to make it simpler for everybody to work out their new holiday entitlement

The law has been brought in to ensure that employees who do not get bank holidays off will get the same number of paid holidays as those who do. If you already let employees have bank holidays off as paid holidays on top of their 20 days (or equivalent for part time employees) entitlement, then you may not need to take much action..

More information on employment issues is available in our You and Work portal.

 

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BizHelp24 – UK business and finance information, news, help and services for small businesses BizHelp24 is a UK business and finance resource providing Small Business Help, Start up Information, news and services; for individuals and Sole Traders. Comprehensively covering a wide range of key business, finance, and service topics. Employment and personal information includes Work Times and Break Entitlement, Body Language, employee Holiday Entitlement and Employment Contracts. Credit Policy information includes Letter of Credit, useful Credit Notes, Business Loans. and Cash Flow Control. Other information areas include Bankruptcy, Homeworking, Business Failure, Company House and Company Names,

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