Employees minimum annual holiday entitlement is increasing from 1 October 2007. The holiday entitlement will increase to 4.8 weeks (24 days if employees work a five day week) from 1 October 2007 and to 5.6 weeks (28 days if employees work a five day week) from 1 April 2009. These entitlements will be pro-rated for those employees who work part time.  The increased entitlements include bank holidays, so if you or your employees already receive 24 days inclusive of bank holidays there will be no additional entitlement.

To help employers calculate their employees’ new entitlement an easy to use tool is available on the Business Link website. An ready reckoner table is also available for more straightforward cases.

Under the rules for the introduction of the new entitlement employers may pay employees for the additional holiday entitlement (the additional 0.8 weeks or 4 days) until 1 April 2009. This is a temporary measure to ease the transition.

These proposals relate to England, Wales and Scotland. The Department for Employment and Learning in Northern Ireland are in the process of making proposals for Northern Ireland.

Internet links:  BERR guidance frequently asked questions
 ready reckoner and Business link calculator