It’s Holiday Time – Issues Faced by Employers
Yes, it’s that time of year again – the holiday season is here! Many of us will be looking forward to that well earned rest from work and a chance to spend time with family. However, arranging and agreeing holidays for workers can often be problematic for many Employers. It is not uncommon for large manufacturing companies to have a 2 week shutdown over the summer months, and to insist that all workers use two weeks of their annual holiday entitlement during this time. It is, however, a totally different situation for smaller businesses who simply could not afford to close down their business for a two week period.
Employers are therefore faced with trying to juggle each individual worker’s request for holidays, as well as ensuring the workplace has adequate cover. Many workers may wish to use a large chunk of their annual holiday entitlement over the summer period either to care for children over the school holidays or simply to enjoy the finer weather.
To alleviate any problems that may arise in respect of the booking of holidays, Employers should always ensure that they have a dedicated holiday policy in their contracts of employment. The policy should set out:-
- how much notice of holiday bookings that the Employer requires
- information about when the holiday year runs from
- what happens if a worker’s employment terminates partway through a holiday year
- how holidays will be allocated, e.g. a first come first served basis.
It is also important that Employers keep up to speed with recent legislative changes in workers entitlement to holidays. From 1st April 2009, the minimum paid holiday entitlement increased to 5.6 weeks. For full-time workers this is basically 28 days - 4 floating weeks plus the 8 annual bank holidays.
One of the most common pitfalls for Employers is when workers leave their employment partway through a holiday year, having used up more holidays than what they have accrued. The Working Time Regulations state that workers are entitled to be paid for any holidays that they have accrued but not taken. However, the reverse is not true, and Employers will need a written term in the contract of employment specifically allowing them to recover excess holiday pay. In the absence of such a clause, a worker who leaves his employment halfway through the holiday year, having used all or most of his annual entitlement will not have to repay any money.
The other troublesome area for Employers relates to the taking of holiday (or payment of holidays) when a worker is absent from work on long term sick leave. The European Court of Justice and the House of Lords have decided this year, much to the dismay of Employers, that workers who are on sick leave for most or all of the holiday leave year are still entitled to paid holidays. Employers that find themselves facing difficulties with the payment or taking of holidays should always take specific legal advice as the law continues to change quite rapidly.
July 2009
This article gives a general overview only and the legal position at the time of writing this article. It cannot be relied upon in any particular case. Specific legal advice must always be considered to include consideration as to whether the legal position contained in this article has changed since going to print. For further information and advice, please contact Paul Archer or Lauren Harkin on 01793 527141 or alternatively by email on Paul.Archer@lemon-co.co.uk or Lauren.Harkin@lemon-co.co.uk.
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<p><strong><a href="http://www.lemon-co.co.uk/article_holiday-time.php">It’s Holiday Time – Issues Faced by Employers</a></strong><br />
Yes, it’s that time of year again – the holiday season is here! Many of us will be looking forward to that well earned rest from work and a chance to spend time with family...</p>
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