Changing holidays

From 1 October 2007, the entitlement will increase from four weeks to 4.8 weeks (24 days a year), or 4.8 times your usual working week. A further increase to 5.6 weeks (28 days) will take place from 1 April 2009. The statutory holiday entitlement will be capped at 28 days, though an employer can give more.

Working a five-day week, 4.8 weeks is 24 working days, though if a part-time worker works four days a week then 4.8 weeks is 19.2 working days. It becomes complicated when you have someone that starts working mid-way through a leave year.

If they began work after 1 October 2007, but prior to 1 April 2009, their holiday entitlement for the first leave year would be calculated by multiplying the proportion of a full year that they worked by 4.8 weeks. So, if a worker joined a company with 32 weeks left in the leave year, their holiday entitlement would be (32 divided by 52) x 4.8 weeks = 3.0 weeks.

If they started working before 1 October 2007 then their entitlement for the first year would be the proportion of a full year that they worked multiplied by four weeks, plus the proportion of a full year that they worked after 1 October 2007, multiplied finally by 0.8 weeks.

Part-timers are also entitled to 4.8 weeks' holiday, based on the hours a week that they work. Furthermore, the additional holiday entitlement covers agency workers and self-employed workers contracted to you to perform a task personally.

Any employee on maternity leave retains her entitlement to annual leave throughout ordinary and additional maternity leave. If the employee is entitled to contractual annual leave then she will continue to accrue this additional, contractual entitlement during ordinary maternity leave.

There is nothing in the changes to the regulations giving employees or workers the right to have bank holidays off, nor are the rules for requesting or ordering leave changed.

There is one small interim rule that allows the additional - i.e. the 'over four weeks' entitlement - number of days to be carried over to the next holiday year or for payment in lieu to be made for the 'over four weeks' entitlement up to the 1 April 2009, but not after that date.

Finally, reissuing contracts of employment is not required, as this is a change in the terms of employment to the benefit of employees. However, you will need to inform your staff in writing of the increased holiday entitlement.

- Peter Done, Managing director, Peninsula Business Services.