Weíre all going on a summer holiday...

The UK Government proposes to increase statutory holiday entitlement to 28 days per year. This will bring the UK more into line with other European countries; although even with the increase UK workers will remain some distance behind their Austrian counterparts who are entitled to 38 days annual leave.

Peter-Jon Chalmers, Director, of Empire HR provides information and advice to employers on statutory holiday entitlement.

Q I employ several people in my small business. Full time employees currently get 20 days annual leave. I seem to remember seeing something in the press about having to increase this to 28 days ñ can you advise when this has to be implemented by?

A The government is consulting on increasing the current statutory minimum holiday entitlement from 4 weeks to 5.6 weeks, equivalent to an increase from 20 to 28 days for someone working a five-day week. It is proposed that any change will be phased in over a period of time with statutory holidays increasing to 4.8 weeks (24 days) from 1 October 2007. The maximum statutory entitlement will increase again on 1 October 2008 to 5.6 weeks (28 days).

Q I currently give my staff 28 days annual leave including the eight public holidays. In light of the proposal to make paid time off for public holidays additional to the current four week holiday entitlement will I have increase the amount of annual leave I give my employees?

A No, the new proposals will only really affect those employers who currently provide less than 28 days leave. In fact, this year the proposals only affect those employers not providing 24 days or more.

Q As the proposed changes to statutory holiday entitlement will increase amount of annual leave that my staff are allowed to take will I need to reissue their employment contracts to reflect the change?

A You do not need to reissue contracts but you should issue a written amendment to the contract to ensure the changes are properly recorded. This should be issued within one month of the changes taking effect. Of course, this is a statutory change, which will become effective regardless of what you, as an employer, issue in writing.

Q I only employ two members of staff but at the moment I donít have employment contracts in place. In light of the proposed changes to holiday entitlement I think that this would be a good time to implement employment contracts ñ can you advise how to go about this?

A You are under a legal duty to provide your employees with a written statement of terms and conditions within two months of their start date, regardless of the number of staff you employ. Failure to provide a written statement can result in an employee being awarded an extra four weeksí pay if they win an employment tribunal claim. I would strongly urge you to seek professional assistance in drawing up proper, legally compliant employment contracts as soon as possible and not wait until the new holiday laws are implemented.

Empire HR provides commercially focused employment law and HR support service including a telephone advice line, HR Consultancy, employment tribunal insurance and health and safety support for businesses across Scotland. Empire HR can be contacted on 01224 701383 or at www.empirehr.com.