Bank Holidays and Employment: Employer's Guide

Bank holidays are often misunderstood. There's no automatic right to them off or to enhanced pay for working them. Here's what the law actually requires.

UK Bank Holidays

England and Wales (8 days)

• New Year's Day
• Good Friday
• Easter Monday
• Early May Bank Holiday
• Spring Bank Holiday
• Summer Bank Holiday
• Christmas Day
• Boxing Day

Scotland (9 days)

Same as England and Wales, plus:

• 2nd January
• St Andrew's Day (30 November)

Northern Ireland (10 days)

Same as England and Wales, plus:

• St Patrick's Day (17 March)
• Battle of the Boyne (12 July)

The Legal Position

No Automatic Right to Bank Holidays Off

Key point: Workers have a statutory right to 28 days' paid annual leave (5.6 weeks for full-time workers). But there's no separate right to bank holidays.

The 28 days can:

• Include bank holidays, OR
• Be in addition to bank holidays

It depends on the contract.

What the Contract Might Say

Option 1: Bank holidays included

"You are entitled to 28 days' annual leave including bank holidays"

The 8 bank holidays count towards the 28 days, leaving 20 days to take at other times.

Option 2: Bank holidays additional

"You are entitled to 20 days' annual leave plus bank holidays"

Total of 28 days (20 + 8), with bank holidays as specific days off.

Option 3: No mention of bank holidays If the contract is silent, you decide your policy. But be consistent.

Can You Require Staff to Work Bank Holidays?

If Contract Allows

Yes, if the contract:

• Says bank holidays are normal working days, OR
• Requires flexibility on working days, OR
• Doesn't guarantee bank holidays off

If Contract Guarantees Bank Holidays Off

You'd need to:

• Get agreement to change, OR
• Follow proper process to vary terms

Practical Considerations

• Essential services need cover
• Retail, hospitality often busiest on bank holidays
• Some workers prefer to work (premium pay, avoid crowds)

Pay for Working Bank Holidays

No Statutory Right to Enhanced Pay

The law doesn't require extra pay for bank holiday work. Any premium (time-and-a-half, double time) is contractual.

Check Your Contract

Common arrangements:

• Normal pay rate
• Time-and-a-half
• Double time
• Day off in lieu (TOIL)
• Combination (enhanced pay + TOIL)

What If Contract Is Silent?

You decide the policy. But:

• Be consistent
• Consider recruitment/retention impact
• Check industry norms

Part-Time Workers

The Pro-Rata Principle

Part-time workers must not be treated less favourably than full-time colleagues. This includes bank holidays.

The Problem

If full-timers get 20 days leave + 8 bank holidays = 28 days

A part-timer working 3 days might only get:

• 12 days leave (pro-rata of 20)
• Plus bank holidays that fall on their days

If few bank holidays fall on their working days, they get fewer total days.

The Solution

Calculate total entitlement including bank holidays, then pro-rata:

Full-time entitlement: 28 days Part-timer (3 days/week): 28 × 0.6 = 16.8 days

They can take these 16.8 days whenever they choose, regardless of when bank holidays fall.

Example Calculation

Emma works Monday, Tuesday, Wednesday

Full-time equivalent: 28 days (20 + 8 bank holidays)

Emma's pro-rata: 28 × (3/5) = 16.8 days

In 2025:

• 3 bank holidays fall on Mon/Tue/Wed (her working days)
• These use 3 of her 16.8 days
• She has 13.8 days left to book

Not:

• 12 days leave (pro-rata of 20)
• Plus only the 3 bank holidays on her days
• = 15 days (less than pro-rata of 28)

Religious Holidays

No Automatic Right

Workers don't have an automatic right to time off for religious holidays not recognised as UK bank holidays.

Reasonable Accommodation

Consider:

• Allowing leave requests for religious days
• Swapping bank holidays for alternative days
• Flexible working arrangements

Avoiding Discrimination

Refusing time off for religious observance could be indirect discrimination if you can't objectively justify it.

Best practice:

• Consider requests sympathetically
• Be consistent across religions
• Have a clear policy

Substitution and Extra Bank Holidays

When Bank Holidays Are Substituted

If Christmas Day falls on Saturday:

• The bank holiday moves to the following Monday
• Your policy should cover this

Extra Bank Holidays

Occasionally, extra bank holidays are declared (coronations, jubilees).

Questions to consider:

• Does the contract include "all" bank holidays?
• Will you grant the extra day?
• If requiring work, what's the pay rate?

Contractual Wording Matters

"8 bank holidays" - Just the 8, no extra ones

"All UK bank holidays" - Includes any extras declared

"Bank holidays as designated" - Arguably includes extras

Closing Over Christmas/New Year

Requiring Staff to Take Leave

You can require employees to take holiday on specific days if:

• Contract allows it, OR
• You give adequate notice (twice the leave length)

Notice Requirements

To require 3 days' leave over Christmas:

• Give at least 6 days' notice
• Put it in writing
• Apply consistently

Contractual Shutdown

Many contracts include:

"The company closes between Christmas and New Year. You must reserve X days of your annual leave for this period."

This is valid if clearly stated.

Policy Best Practices

Clear Communication

Your policy should state:

• Whether bank holidays are included in or additional to leave
• Pay rate for working bank holidays
• How part-time entitlement is calculated
• Process for requesting alternatives (religious days)
• Christmas/New Year arrangements

Fair Treatment

• Rotate bank holiday working fairly
• Don't always give same people the desirable days off
• Consider caring responsibilities
• Be consistent across similar roles

Record Keeping

Track:

• Bank holidays taken/worked
• TOIL owed
• Enhanced pay paid
• Part-time calculations

Common Questions

Can I give extra leave instead of bank holidays?

Yes. You can offer 36 days' leave (28 + 8) and let staff choose when to take them all, including working bank holidays if they prefer.

What about staff who want to work all bank holidays?

If your business is open, you can allow this. They'd have all 28+ days to take at other times.

Do bank holidays count towards notice periods?

Yes, unless the contract says otherwise. A week's notice includes any bank holidays falling within it.

What if someone is sick on a bank holiday?

If the bank holiday was a day off, they don't get an extra day. If they were scheduled to work, treat as normal sickness.

Do zero-hours workers get bank holiday pay?

They're entitled to paid leave (5.6 weeks), but not specifically bank holidays. Use the accrual method (12.07% of hours worked).