With two bank holidays on the way in May, many businesses will be considering their staffing arrangements during this time. Below, we set out what employers need to know about bank holidays.
No automatic right to time off
There is no statutory right to time off on a bank holiday. All workers must receive at least 5.6 weeks’ paid annual leave each year, but it is up to an employer as to when they are allowed to take those days off.
Many businesses will close on bank holidays and, where that’s the case, it is relatively easy to deal with; it can be specified in the employment contract which bank holidays must be taken as annual leave. There are various ways to do this, such as specifying the days (i.e. early May bank holiday etc) to be taken as bank holidays or saying that the bank holidays are part of the employee’s overall holiday entitlement, amongst others.
Where the business is not closed, then it may be that only some of the staff have to work. Setting out a rota early, naming those who are expected to work, or asking employees to volunteer to work on bank holidays, perhaps by requiring them to do a minimum of two a year, are good ways to manage this issue to avoid any confusion.
Employers can set their own rules on pay for bank holiday working
Employers may reward staff for working on bank holidays by paying them extra, but there is no rule that this must happen; it will depend on the employment contract. Many businesses offer extra pay for bank holidays as an incentive to encourage staff to work those days.
Any bonuses, including extra pay for bank holidays, should be stated in staff contracts. Where extra pay has been paid in the past, but it is not set out in the contract, it may be that an implied term has developed that it will be given. Withdrawing additional pay on bank holidays in these circumstances may therefore be a breach of contract and result in an employment tribunal claim. It is important to be consistent in applying these rules and the best way to ensure this is to put it in writing in the employment contract.
Employees can be forced to take annual leave over bank holidays
If an organisation closes over bank holidays, such as on Christmas Day, employees can be required to use annual leave while the organisation is shut. Where there are plans to do this, as much notice as possible should be given, usually at the beginning of the annual leave year. The minimum notice that must be given is twice as much notice as the period that the employee is required to be off work. For example, to require employees to take one week off, they would need to be given two weeks’ notice.
Holiday requests from particular groups of employees should not be prioritised
Questions often arise as to whether annual leave requests from staff with religious beliefs or those who have school-age children should be prioritised where they coincide with school holidays or special religious occasions, but this could result in issues with childless/childfree or non-religious workers. Instead, it is advisable to adopt a first-come, first-served approach. Some organisations will set rules around when leave for certain times of the year will be accepted, so everyone has a fair chance to submit their request.
When it comes to bank holidays, advance planning, clear documentation and communication are key to keeping operations running smoothly.
