As the days start to get longer and the temperature rises, many of us eagerly anticipate the arrival of a much-needed break from work: the summer bank holiday. But have you ever wondered whether your employer is required to pay you for this time off?
The answer, as with many employment law questions, is not always straightforward. In this blog post, we’ll explore the ins and outs of bank holiday pay and what it means for you as an employee.
Whether you’re an employer trying to navigate the legal landscape or an employee looking to understand your rights, this post will provide you with the information you need to know.
Here’s the quick and easy answer first though:
Do employers have to pay an employee on bank holidays? The decision of whether to provide paid leave for bank holidays is at the discretion of the employer. However, it’s important to clearly state the terms of paid leave entitlement in the employment contract for employees.
More on employers paying on bank holidays
Bank holidays are UK public holidays when most businesses, schools, and government offices are closed. There are typically eight bank holidays in England and Wales each year, including New Year’s Day, Good Friday, Easter Monday, May Day, Spring Bank Holiday, Late Summer Bank Holiday, Christmas Day, and Boxing Day.
Scotland and Northern Ireland have their own bank holiday schedules.
Bank holidays give employees an opportunity to take time off work and spend time with family and friends, or time to pursue leisure activities. From a business perspective, bank holidays are also important as they help to boost the economy, as many people use bank holidays to travel or engage in recreational activities.
Employer obligations regarding bank holiday pay
Employers have legal obligations when it comes to bank holiday pay in the UK. The rules regarding bank holiday pay are set out in the Employment Rights Act and the Working Time Regulations (1998).
Generally, if an employee works on a bank holiday, they are entitled to be paid their normal rate of pay for the hours worked, plus an additional day’s pay. Alternatively, an employer may choose to give employees a day off in lieu of the bank holiday or can include bank holidays in an employee’s annual leave entitlement.
If an employee is on leave during a bank holiday, they should be paid their usual rate of pay for that day, and the bank holiday should be counted as a day of annual leave.
It’s important for employers to ensure that they are complying with the law when it comes to bank holiday pay. Failure to do so can result in legal action and penalties.
Employee rights regarding bank holiday pay
Employees have certain rights when it comes to bank holiday pay. Generally, if an employee works on a bank holiday, they are entitled to be paid their normal rate of pay for the hours worked, plus an additional day’s pay. If they don’t work on a bank holiday, they should receive their usual rate of pay for that day.
If an employee is on leave during a bank holiday, the bank holiday should be counted as a day of annual leave, and they should be paid their usual rate of pay for that day.
Part-time workers and those on zero-hour contracts are also entitled to bank holiday pay, although the calculation can be more complex. Employers should ensure that they are treating all employees fairly when it comes to bank holiday pay.
Exceptions to bank holiday pay requirements
There are some exceptions to the bank holiday pay requirements. The “reasonable assumption” rule allows employers to assume that an employee will take their bank holiday entitlement as part of their annual leave entitlement and pay them accordingly. This can be useful for employers who want to simplify their payroll processes.
The “rolled up” holiday pay approach allows employers to include bank holiday pay in an employee’s hourly rate, rather than paying them separately. However, this approach is generally discouraged by the government, as it can be difficult to calculate and can result in employees being paid less than they are entitled to.
It’s important for employers to be aware of the exceptions to the bank holiday pay requirements and to ensure that they are not using them to exploit their employees. Employees should also be aware of their rights and seek advice if they believe they are not being paid fairly for bank holidays.
To conclude, employers have legal obligations to ensure that they are paying their employees fairly for bank holidays, while employees have rights to ensure that they are being paid what they are entitled to.
By understanding the rules around bank holiday pay, employers and employees can work together to ensure that everyone is being treated fairly and that bank holidays continue to be an important part of our culture.
Image in header via https://unsplash.com/photos/0yqa0rMCsYk
Jon has been in business since 1999, and in that time worked with more than 300 small business clients. As well as being an accountant, he is also an early adopter of tech, and has helped small businesses to leverage the power of their computer systems by creating software to automate and simplify accounting tasks.
