Holiday entitlement increases from 1st April 2009
From 1st April 2009, the statutory minimum holiday entitlement increase from 4.8 weeks to 5.6 weeks. This is capped at a maximum statutory entitlement of 28 days. This minimum entitlement can include time off for bank and public holidays.
Payment in lieu of the statutory minimum holiday entitlement will no longer be allowed. However, depending on the employment contract, payment in lieu can be made for any additional leave above this.
Employers don’t need to reissue employee contracts, but if it affects them, you should let your staff know about the increased entitlement in writing, for example through a Statement of Employment or a letter.
As this new legislation only comes into effect from 1st April, you don’t need to make any changes just yet.
If your holiday year does not run from April, you’ll need to manually calculate the pro rata increase for the remainder of their holiday year. Sage will provide further information closer to the time about how to make the necessary changes within Sage 50 Payroll.
For further information about the new legislation, and a tool to help calculate the increase in entitlement, visit the Business Link website at http://www.businesslink.gov.uk
