Holiday Pay and Overtime Update: 4 November 2014
Annual leave entitlements should be agreed when an employee starts work, details of holidays and holiday pay should be found in the employee's written statement or contract of employment.
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Note: This leaflet contains helpful information about holiday entitlement, but it does NOT yet contain information about overtime and holiday pay following the Employment Appeal Tribunal Ruling in Bear Scotland Ltd v Fulton (and other joined cases) on 4 November 2014.
- Most workers are legally entitled to 5.6 weeks paid holiday per year (this is known as statutory entitlement).
- Part time worker are entitled to the same amount of holiday (pro rota) as full time colleagues.
- Employers can set the times when workers can take their leave - for example a Christmas shut down.
- If employment ends workers have the right to be paid for any leave due but not taken.
- There is no legal right to paid public holidays.
Once an employee starts work details of holidays and holiday pay entitlement should be found in the employee's written contract, where there is one, or a written statement of employment particulars given to employees by their employer.
Note: The written statement is required by law and must be given to employees by the employer no later than two months after the start of employment.
Most workers - whether part-time or full-time - are legally entitled to 5.6 weeks of paid annual leave. Additional annual leave may be agreed as part of a worker's contract. A week of leave should allow workers to be away from work for a week - i.e. it should be the same amount of time as the working week. If a worker does a five-day week, he or she is entitled to 28 days leave. However, for a worker who works 6 days a week the statutory entitlement is capped at 28 days. If they work a three-day week, the entitlement is 16.8 days leave. Employers can set the times that workers take their leave, for example for a Christmas shut down. If a worker's employment ends, they have a right to be paid for the leave due and not taken.
There is no legal right to paid leave for public holidays; any right to paid time off for these holidays depends on the terms of a worker's contract. Paid public holidays can be counted as part of the statutory 5.6 weeks of holiday.
Carrying leave over from one leave year to the next
Workers must take at least four weeks statutory leave, they may be able to carry over the remaining leave if their employer agrees. Workers do not have an automatic right to carry leave over to the next holiday year.
Workers who are entitled to more than the statutory leave allowance may be able to carry over leave if the employer agrees, this agreement may be written into the terms and conditions of employment.
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