Small business and tax blog

From today, there is a statutory increase in the amount of paid holiday that employers have to give employees. It has increased from 4 weeks to 4.8 weeks per year, based on each employee’s standard working week. As this is the minimum entitlement set out in law, companies that already offer their employees more generous holiday entitlements are not affected.

A full-time worker, working 5 days per week, will now be entitled to 24 days (5 days x 4.8 weeks) paid holiday per year.

A part-time worker, who might work for 2 days per week, would now be entitled to 9.6 days (2 days x 4.8 weeks) paid holiday per year.

There are special rules for employees with working patterns that do not fit into regular weeks.

The annual entitlement can include bank holidays.

As the increase in holiday is a beneficial change in the terms and conditions of employment for the worker, there is no need to reissue employment contracts. However, employers do need to notify staff know about the increased entitlement in writing.

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