Paying staff on bank holidays.

When it comes to paying staff on bank holidays in England and Wales, there are key points to consider under employment law.

Firstly, there is no statutory requirement for employers to provide paid time off on bank holidays. This means that employers are not legally obligated to pay employees who do not work on these days. However, many companies choose to offer this benefit as part of their employment contracts or company policy.

Employers that do provide paid time off on bank holidays typically include it as part of the employee’s overall holiday entitlement. For example, if an employee is entitled to 28 days of holiday per year, this may encompass both their annual leave and bank holidays.

If an employee is required to work on a bank holiday, employers have the discretion to decide how they will compensate them. Common practices include:

1. Standard Pay: Some employers pay the employee their normal wage for working on a bank holiday.
2. Enhanced Pay: Others may offer a higher rate of pay, such as time and a half or double time, as an incentive for working during these periods due to the inconvenience or demand.

3. Time Off in Lieu: Employers may offer additional leave days as compensation for working on bank holidays.

It’s essential for employers to clearly communicate their policies on bank holiday pay and outline these terms in the employee handbook or contracts to avoid confusion. Employees should be aware that their entitlement to pay on bank holidays may vary based on their specific terms of employment.

In summary, while there is no legal requirement for pay on bank holidays in England and Wales, many employers choose to offer various forms of compensation. Clear communication of the company policy is crucial for both employers and employees.

At Alexander JLO we have decades of experience of dealing with all aspects of employment and business law and will be happy to discuss your case in a free no obligation consultation. Why not call us on +44 (0)20 7537 7000, email us at info@london-law.co.uk or get in touch via the contact us button  and see what we can do for you?

This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on 15th January 2025 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. He is widely regarded as one of London’s leading employment lawyers and is a member of The Employment Lawyers Association. His profile on the independent Review Solicitor website can be found Here