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Paying staff on bank holidays.

When it comes to paying employees 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.

This blog was prepared by Alexander JLO’s senior partner Peter Johnson on the 25th August 2024 and is correct at the time of publication. Peter has over 40 years’ experience in the areas of Family Law, Company & Commercial, IT & Intellectual Property, Employment Law and Litigation working as a Solicitor.

Peter’s profile on the independent Review Solicitor website can be viewed here.