Question

Do I need to take bank holidays into account, when calculating accrued holiday entitlement for someone going on maternity leave?

Answer

If the contract of employment does not give a right to paid time off on bank holidays, generally there is no need to include them in your calculations. However note that all workers are entitled to a statutory minimum of 5.6 weeks’ holiday per year (28 days for a full time employee). Therefore if the employee’s contract gives them less basic holiday than this, you must count as many bank holidays as necessary to bring them up to that minimum.

If the contract does refer to bank holidays, the point relating to the statutory minimum still applies. If the contractual entitlement exceeds the minimum, the question then hinges on the wording of the contract. Depending on the wording used, bank holidays will either be classified as holiday, or simply a day on which there is a right to pay (whether or not the employee attends work).

The way you treat other employees on bank holidays is also a factor. If another employee worked on a bank holiday, would you allow that person to take another day off in lieu? If so, you have treated the bank holiday as part of the annual leave entitlement.

If bank holidays are classified as part of the annual leave, then those days should be counted towards the annual entitlement in your calculations. However if there is merely a right to be paid, there is no need to take missed bank holidays into account, as the right to receive normal remuneration ceases during maternity leave.

If you would like to know more, please contact Tony Hyams-Parish, Head of Employment, in confidence and without obligation by emailing Tony or by calling him on 08450 990045, or speak to your usual contact in the Employment Team.

This answer is provided for information only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this article.

Read some of our previous Employers Questions here.