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Offering the bonus bank holiday? Check your contracts
If you’re thinking you might not offer time off over the additional bank holiday or might pay in lieu instead, you’ll need to consult your employment contracts. Here’s what you need to know…
Some employees will be entitled contractually to the bank holiday (taking the decision out of your hands unless they’re willing to agree to something different). In summary, if the employee’s employment contract says their holiday entitlement is:
plus bank holidays – they’re entitled to the day off;
plus eight or usual bank holidays – they’re not entitled to the day off;
inclusive of bank holidays – they’re not entitled to the day off because the holiday entitlement already includes bank holidays in the calculation.
Of course, irrespective of what the contract says you can agree to a variation with your employees – so you could give them the extra day even if they’re not entitled to it or you could offer to pay them in lieu if they are. Make sure to confirm any variation in writing.
This update is accurate on the date it was published (29 March 2022), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.