Firms warned over changes to holiday law

LAWYERS from across the region are advising employers to start reviewing their holiday procedures and documentation following a change in the law.

The warning follows an increase in minimum holiday entitlement which come into force early next year.

Leeds Legal, an alliance of the city’s major law firms formed to promote the sector’s expertise in Leeds, says that from April 1, 2009, employees will be entitled to take 5.6 weeks paid annual leave.

This equates to 28 days for full-time workers, with the amount being pro-rated for part-time staff.

The changes follow implementation of the European Working Time Regulations in 1998, entitling staff to four weeks paid leave a year, which for most workers meant 20 days.

The Government moved to install the 28-day minimum after it became clear that millions of workers were being forced to include the eight bank holidays in their 20 day entitlement.

The move is being made in two stages. The first phase increased the entitlement to 4.8 weeks, or 24 days for staff working five days a week, in October last year.

Louise Bland, a specialist in employment law at Lupton Fawcett in Leeds, said: “Employers need to be aware that refusing to allow employees to take 28 days statutory holiday could lead to an employment tribunal, resulting in a compensation payout equalling the employee’s salary for the days refused.

“The regulations also do not allow staff to be paid in lieu for statutory holiday from April 1 unless they are leaving. This is important, as employers are currently allowed to pay in lieu of the extra 0.8 weeks, as a temporary measure to help them make transitional arrangements, such as recruiting extra staff or providing additional training. The changes will therefore have a huge impact on many businesses employing lower paid staff, as many of them don’t offer this amount of leave.

“This is why employers should be reviewing policies, contracts and handbooks now to avoid being caught out next year.”