Terms & Conditions • October 5, 2018
Employees To Benefit From Queen’s Death!
Written by Jennifer Ormond
It is with deep sadness that we commemorate and celebrate the life of dedication and service of Her Late Majesty Queen Elizabeth II.
It is expected that the government will shortly announce two Bank Holidays to allow for national mourning. We anticipate most employers will grant these additional days to their staff, effectively increasing annual leave entitlements. For some employers it may not be feasible, either due to financial constraints in these difficult times or because of the work they undertake.
We advise all employers to review the contracts of employment that they use. If the contract states that employees are entitled to “20 days annual leave plus the usual 8 bank holidays (or the pro-rata equivalent).” This means that those 2 extra bank holidays can be taken either by being granted as additional paid leave or by as part of the usual holiday entitlement.
If the contract of employment states “20 days annual leave plus the bank holidays” and fails to stipulate which bank holidays are included, an employer will have to fund those days for its staff.
The Queen’s death has fallen in a year where most employees have already benefited from two additional paid bank holidays this year. With the additional two bank holidays which will follow the Queen’s death, employees will now have FOUR BANK HOLIDAYS THIS YEAR (if Charles is crowned this year). The question of whether or not to pay for these additional bank holidays is a huge one for employers and depends on the wording in the contract of employment
The cost for a small business of 10 employees who each work 8 hours a day on National Minimum Wage is £760 per bank holiday. That totals £3040 on additional staff wages for FOUR BANK HOLIDAYS THIS YEAR.
This cost increase for larger businesses could be huge.
If the contract of employment gives a choice to pay for the bank holidays, many businesses will decide to do so however it might not be compulsory. Let us help you figure it out.
If the sad news has caused any confusion for employers we remain on hand to help clarify any uncertainty. Please also see our Platinum Jubilee Bank Holiday blog here.
*Blog predicting bank holiday changes is below*
“London Bridge is down” are the words which will be uttered when Queen Elizabeth II passes away to start the ball rolling on communicating the news to the world. It is widely known that news channels practice broadcasts and have pre-recorded news pieces ready for the Queen’s death and there is no reason why businesses should not be equally prepared. If the Queen dies, all employees could ahve an additional 2 days paid bank holidays… businesses should be careful!
The Queen is 92 years old and although she is not suffering with any reported health concerns, now is as good a time as any to check the wording of holiday clauses in contracts of employment.
The day of the Queen’s funeral and the subsequent coronation of the next Monarch will be national holidays. Employers do not have to pay their employees for these extra public holidays if the contract is worded correctly.
Employers should ensure that their contract of employment states that employees are entitled to “20 days annual leave plus the usual 8 bank holidays (or the pro rata equivalent).” This means that those 2 extra bank holidays can be ordered to be part of their usual holiday entitlement and it will not cost the business any additional money.
If the contract of employment states “20 days annual leave plus the bank holidays” and fails to stipulate which bank holidays are included, during any year where there are extra bank holidays, an employer will have to fund those days for its staff. 2 days extra in a year, for each employee could soon mount up!
We want our clients to avoid “London Bridge is down” resulting in “Holiday Costings Are Up!” Feel free to send your holiday clause over to us to review as a courtesy: enquiries@elslegal.co.uk
To read more about the impact of an incorrectly worded clause and how it could give all employees up to 4 days extra leave this year, read our Platinum Jubilee Bank Holiday blog here – the same rules apply to the two bank holidays which will follow after the Queen passes away.
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