The announcement that Prince William and Kate Middleton’s wedding is to be marked by an extra public holiday on 29 April 2011 will be great news for many – but it is likely to lead to questions over whether employers have to give an extra day’s leave. There has always been confusion about the status of bank/public holidays. Public holidays include bank holidays, holidays by Royal Proclamation and ‘common law holidays. It is important to note that employees do not have an automatic right to paid leave on any public holidays, whether they can or not will depend on their contract of employment. Many employers will be happy to give staff the day off with pay regardless of their contracts, but in these times of austerity that will not be an option affordable to all. In addition, some employers will have operational reasons for needing staff to work on that day. The only legal obligation on an employer is to allow their workers the minimum annual leave of 5.6 weeks laid down in the Working Time Regulations (WTR). This means that someone who works five days a week is entitled to a minimum of 28 days leave per year.,So what will happen about 29 April 2011?

The position will depend on the exact wording of an employee’s contract. If, for example, it says that the holiday entitlement is “22 days plus bank holidays” then the employer is likely to have to give the employee a day’s paid leave on 29 April. If, however, it says “28 days including bank holidays” then there will be no extra entitlement. The wording will vary from organisation to organisation.

Most of our clients will have the wording In addition to the above (number of days holiday) you will also receive a paid holiday on or in respect of each of the eight Public Holidays as listed below: In our opinion this means that those clients are only contractually committed to the eight named public holidays not the nine of ‘special years’ therefore the decision whether to give the extra holiday will be discretionary.

There have been suggestions that the Government might come under pressure to increase the minimum entitlement under the Working Time Regulations to 29 days for 2011 only. This is unlikely – not least because not all employees get time off for public holidays bonuses commissions, records and memory may make it hard to uncover and we believe it would be difficult for employees to try and justify custom and practice.

What about pay?

Employers will also be keen to know where they stand in relation to paying staff who do work on the extra public holiday. As with any holiday, an employee’s pay for the day will depend on the wording of their contract, as there is no statutory right to additional pay or time off in lieu. Many organisations do, however, have agreed rates for working on bank holidays, such as double time, and these should be applied as normal.

What about part-timers?

Part-time employees are entitled to be treated no less favourably than full-time employees on a pro-rata basis. As such, if your full-time staff are to be entitled to an additional public holiday in 2011 (either under their contract or because an additional day’s leave is being granted), part-time employees should be given this extra leave on a pro-rata basis.

What notification should we give to staff about their holiday entitlement in 2011?

Employers would be advised to notify employees about their holiday entitlement in 2011 as soon as possible. Many employees will assume that they are entitled to take the additional public holiday (or to have time off in lieu if they have to work that day); if this is not the case, the sooner employees are notified the less potential there is for serious disputes arising. If employees are entitled to the additional public holiday, or the employer decides to grant it anyway, there is likely to be significant demand to take annual leave in the three days between the two consecutive four day weekends in April/May. Employers may wish to consider putting in place specific arrangements for the allocation of annual leave during this period.

Clients may wish to consider designating the 29th April as a compulsory holiday under the WTR from your existing holiday entitlement and this may be the best way around it. You would then communicate with staff that you want them to be able to enjoy the day with family/friends etc but due to economic conditions you are unable to grant an additional day off and so they will need to book the day as holiday. Alternatively if your organisation operates on some or all Public Holidays you could ask employees to work one of the other 8 Public Holidays instead if that is possible.

Whatever employers do they should communicate this clearly and in good time to their employees and ensure that there is consistency of treatment across their workforce.

Conclusion

Even where employees do not have a contractual entitlement to paid time off on the additional public holiday, employers should consider providing this as a gesture of goodwill, where possible, or providing time off in lieu if employees are required to work on that day. Employers that ignore the additional day of holiday should be prepared for a negative reaction from their employees. Many employers are likely to want to find a way to ensure that their employees benefit from this extra holiday given the implications for morale if they fail to do so. However, many workplaces require operations to continue 24/7, 365 days a year and these employers will not be able to automatically grant all staff a day off on 29 April.

The best advice for employers is to be prepared – check your contracts of employment and take advice from your Consultant as appropriate.

The end?

No, there will also be an extra day in 2012 to celebrate the Queen’s Diamond Jubilee which will mean that there will be an additional 4 day weekend for Employers to plan for as well.

Bank holidays in England and Wales (2011 – 2012):

England and Wales – 2011

New Year’s Day – 3 January*,
Good Friday – 22 April
Easter Monday – 25 April
Royal wedding – 29 April,
Early May Bank Holiday – 2 May
Spring Bank Holiday – 30 May
Summer Bank Holiday – 29 August
Christmas Day – 26 December*
Boxing Day – 27 December

England and Wales – 2012

New Year’s Day – 2 January*
Good Friday – 6 April
Easter Monday – 9 April
Early May Bank Holiday – 7 May
Spring Bank Holiday – 4 June*
Queen’s Diamond Jubilee – 5 June
Summer Bank Holiday – 27 August
Christmas Day – 25 December
Boxing Day – 26 December

* Substitute day,