Understanding Annual Leave Rights - The Easter Bank Holiday Dilemma: A Guide for Employers and Employees

The Core Issue

- 2024 and 2025 Easter Bank Holidays Anomaly: Due to the timing of Easter bank holidays in 2024 and 2025, some employers risk violating employees' annual leave rights. Employers may need to grant an additional day's leave to comply with statutory entitlements.

Affected Employers

- Contractual Wording shortfall: Employers who calculate annual leave based on "20 days' holiday plus bank holidays" may find discrepancies due to the variable Easter dates. This primarily affects businesses with a leave year from April 1 to March 31.

Statutory Annual Leave Entitlement Explained

- Minimum Leave Requirements: Employees are legally entitled to 5.6 weeks of annual leave, equating to 28 days for those working a five-day week. This total can include bank holidays, typically eight per year.

2024 and 2025 Easter Bank Holidays: Why the Concern?

- Holiday Allocation Conflict: The 2024 Easter break placement means that in England and Wales, Easter bank holidays will overlap March and April, leading to a potential loss of one bank holiday in the annual leave calculation for the 2024-2025 leave year.

Potential Legal Implications

- Risk of Legal Breaches:

  - Providing less than 28 days' annual leave breaches the Working Time Regulations 1998.

  - Failing to adhere to "20 days’ holiday plus bank holidays" clauses risks breach of contract.

Advisory for Employers

- Mandatory Leave Top-Up: To avoid legal issues, employers must ensure employees receive a 28-day leave entitlement for the April 1, 2024, to March 31, 2025, leave year. This may require adjusting leave allocations to compensate for the bank holiday discrepancy.

Future Outlook and Permanent Solutions

- Recurring Issues: The anomaly will reoccur in the 2027-2028 period, with variations in the number of bank holidays affecting the annual leave calculation.

- Long-Term Solutions:

  - Contract Adjustments: Employers are advised to consider revising employment contracts to clearly stipulate a 28-day annual leave entitlement, inclusive of bank holidays, to mitigate future discrepancies.

The Solution

Employers must be vigilant about the implications of Easter bank holiday timings on annual leave entitlements. By understanding the potential legal issues and considering proactive adjustments to employment contracts, businesses can ensure compliance with statutory requirements while maintaining fairness and clarity for their employees.