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The government has announced plans to increase workers statutory holiday entitlement from 20 days per year to 28.
Under the proposals from the DTI, leave will be increased in 2 steps, rising from 20 to 24 on 1st October 2007, and from 24 to 28 on 1st October 2008.
Trade unions have been lobbying for the move, unhappy that employers are not legally required to give workers time off for bank holidays.
Increasing the statutory minimum will, they hope, prevent ungenerous employers exploiting vulnerable, low-paid workers in a bid to undercut reputable rivals.
“Most companies already recognise that good holiday provision makes good business sense,” said Jim Fitzpatrick, employment relations minister at the DTI.
“We've worked closely with business and have wanted to make sure that they have time to prepare for the changes.”
An increase would move UK workers' annual leave entitlement closer to that of workers in other European countries, where holiday allowance is typically more generous.
Workers in Ireland are entitled to 29 days, while the highest minimum entitlement is in Austria, at 38 days.
The DTI expects the cost to business is expected to be around 0.4% of the wages bill.
Whilst there is a monetory cost, employers will need to ensure their employee terms and conditions and HR policies are updated.
David Tewkesbury, Director of Partnered Solutions said, “With so much change going on in the business world, these changes are easily missed.
We work with employers to ensure their employees benefit from these changes and they don’t fall foul of the law by omitting to make these important changes.
Our managed HR Services provide up to the minute reviews of your businesses HR policies, processes and procedures to help you stay within the law.”
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