Holiday Entitlement

The minimum statutory leave entitlement can be inclusive of all bank and public holidays, and therefore workers who receive paid leave on these days, plus at least a further 20 days per year, will see no change. However, it is still worth Employers checking that they have no employees whose present entitlement falls below this new threshold.

The WTR also applies to all Agency Workers (more commonly referred to as Temps) that you use, and generally their contracts are written with the minimum legislative entitlement in place. The consequence of this is that most Temporary workers can now look forward to the equivalent of an extra 4 days paid leave p.a. for 4 days less work, pro rata to their actual hours worked.

Because clients pay a combined charge rate that includes a combination of the workers pay, employer's national insurance liability, holiday pay entitlement under the WTR and the Agencies own margin, an increase in the charge out rate can be expected to cover this legislative change. However, the increase should not be more than 2% of the current charge out rate and would of course only apply to chargeable hours actually worked.

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