More Time Off and Higher Pay for Workers!

Statutory Annual Leave

Following a consultation in early 2007, it was found that 22% of the British workforce did not receive 20 days holiday in addition to the 8 public holidays or the pro-rata equivalent.  So the government has introduced new legislation to increase statutory annual leave.  The right to statutory annual leave was extended on 1 October 2007 to 4.8 weeks (24 days) and is due to be increased again to 5.6 weeks (28 days) by 1 April 2009 for someone working a 5-day week. For someone working part-time, the right will need to be adjusted on a pro-rata basis.

In relation to this new entitlement, points to note are:

• There is no new right to take time off on the public holidays themselves.  Workers not contractually entitled to take leave on such days must, if they wish to do so, make holiday requests in the normal way.

• If an employer already provides all their workers with 20 days plus public holidays then they do not need to provide any extra annual leave entitlement.

• If your annual leave year does not begin on 1 October, the increased entitlement is calculated on a pro-rata basis.

• Employers may make payments in lieu of the additional entitlement only until 1 April 2009, after which the extended leave may not be replaced by a payment in lieu except on termination. 

• The entitlement to additional leave can be carried over to the next leave year by agreement, however, workers will not be able to insist on this.

• If you do have to increase annual leave for employees, then you need to write to them letting them know of this change to their employment particulars by 1 November 2007 (not later than a month from the change).

National Minimum Wage

From 1 October 2007, the National Minimum Wage was increased as follows:-

• Young workers rate            £3.40 per hour

• Age 18 – 21                        £4.60 per hour

• Age 22 +                             £5.52 per hour

Philomena Price
Solicitor
Employment Department