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July '06
Government announces consultation on the increase of paid holiday entitlement under the Working Time Regulations to include public and bank holidays.
The DTI has announced a consultation on extending the current right for all workers to 20 days' paid leave each year by a further 8 days to reflect bank and public holidays “UK Holidays”).
If after the consultation the government decides to proceed with legislation to extend leave entitlement, the result would be that all workers will be entitled to 28 days paid holidays instead of 20 days.
Some issues
Most employers already absorb UK Holidays as paid, since most employees are not paid on an hours worked basis.
However an extension of leave entitlement would particularly affect employment businesses supplying paye temps, who are paid on an hours worked basis only.
The net result of any extension would be to push the amount attributable to holiday pay up from the existing 8.33% of normal rate to 12.07% resulting in a higher pay out by the employment business or employer. However, the calculation changes if the rate is not charged over a full year.
The consultation details can be found at http://www.dti.gov.uk/consultations/page30026.html
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