Would You Like An Extra Bank Holiday?

Ex-attorney general Lord Goldsmith is proposing a new public holiday to celebrate ‘Britishness’ as part of a campaign to promote British citizenship. It’s not the first time a new bank holiday has been suggested.

Tour company Thomas Cook’s survey last year found that over 50% of MPs supported the introduction of a new holiday. The TUC and other leading voluntary organisations argue Britain has fewer public holidays than most other European countries. Britain currently has 8 public holidays compared with 16 in Italy, 14 in Spain and 11 in France.

However, despite the popularity of such proposals, the CBI does not agree. They estimate a new public holiday would cost the economy up to £6 billion pounds and commented, “The idea of celebrating national heroes is a positive one, but there is no reason why this could not be done on an existing bank holiday.”

The proposals for a new public holiday follow the relatively recent increase in the statutory holiday entitlement from 20 days up to a maximum of 28 days (for an individual working full time). This increase, part of the Working Time (Amendment) Regulations 2007, is compulsory by 1 April 2009 and offers a big improvement for many workers, but comes at a substantial cost to employers.

The regulations implemented in 2 phases started on 1 October 2007 giving employees an entitlement of 4.8 weeks statutory holiday. From 1 April 2009 this entitlement increases to 5.6 weeks. Understandably suggestions for a new public holiday are not particularly popular with employers.

If a new public holiday is declared employers may face a large bill, and it will depend on the contract of employment. At present, any time off for bank holidays may be included in the basic holiday entitlement, providing this is stated in the contract. Accordingly, a new bank holiday could form part of the employee’s existing holiday entitlement, leaving fewer days to take at their own discretion.

However, if the contract of employment entitles the employee to the statutory entitlement plus bank holidays the employer could find that they are faced with a large bill. So it seems likely that holidays will become more expensive for many employers in the future, especially if a new public holiday is declared.

Foot Anstey offers employment law training on a range of issues. 

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Published 27/03/2008. The author of this article is Karen Plumbley-Jones