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What if my business is closed on a bank holiday?
If your business is not open on a bank holiday, there is no requirement to give employees paid leave. Instead, you can take this from their holiday entitlement.
Importantly, you will need to outline this in their contract of employment.
Do I need to give employees extra pay for working bank holidays?
It’s a common myth that working a bank holiday means that employees who are paid on an hourly basis are entitled to extra pay. This is false.
Whilst some businesses do choose to give employees extra money on these days, you as the employer have no legal obligation to do so. Again, any notion of extra rates for working bank holidays should be stipulated in an employee’s contract of employment.
If the contract fails to mention anything on pay rates, an employee’s rights will depend on what they verbally agreed with you prior. For example, if you offered employees extra pay for working bank holidays in the past, this may become a contractual right.
As with most employment matters, what can constitute as a contractual right will differ on a case-to-case basis. You should always get an expert’s opinion to know your legal standpoint.
What happens if a part-time employee doesn’t work on a bank holiday?
Employees that don’t work on days that bank holidays fall on (usually Mondays) may potentially have fewer days off per year than other workers.
To ensure you as the employer stay in line with the law, you need to make sure that all employees have at least the statutory minimum annual leave entitlement. To avoid complaints, many businesses simply offer part-time employees enhanced rates on bank holidays.
How can I calculate the amount of holiday an employee is entitled to?
Currently, the statutory rate for full-time workers is 28 days holiday including bank holidays. However, when bank holidays come into the mix, it can get confusing.
For part-time workers, you should use the calculation below to work out their pro-rata holiday allowance including bank holidays:
For example, an employee that works three 8-hour shifts per week would be entitled to:
(24/40) x (8×8) = 0.6 x 64 = 38.4
Rounded up, this would become 39 hours holiday per year.