Government right to phase increase of annual leave - CBI

The CBI today (Tuesday) welcomed improved regulations ushering in two phased increases to statutory paid annual leave, to 24 days from this October and 28 days from April 2009.

Commenting on the new regulations, the CBI's Deputy Director-General John Cridland said: The Government is right to introduce the extension of statutory annual leave gradually over the next two years, a 'big bang' approach would have been more painful for employers.

Many businesses - particularly retailers and health and social care providers - will welcome the Government's decision to extend the phasing in period as it will help them change shift patterns and absorb transition costs. Others may also want to take advantage of the option to buy back extra holiday, with the agreement of staff, and pay them more wages instead - giving them more time to update pay structures.

The majority of companies, which already offer 28 days' leave, will be pleased that the Government has taken a risk-based approach and ensured that these regulations will not add to the costs of those who already comply.