SMALL businesses are being urged to get up to speed with new holiday entitlement regulations that will be phased in from October 1.

The rules increase the minimum holiday entitlement from 20 days a year to 24 days from next month, and to 28 days from April 2009.

There will also be an "early implementation incentive" for employers who already have the holiday entitlements in place.

The regulations will also give employers the option to "buy back" extra holiday, if staff agree, and increase wages instead.

Durham Business Club yesterday welcomed the gradual implementation of the regulations to give employers the chance to adapt.

Christine Yule, the club's development director, said: "The new rules are good for employees and should be good for business.

"It's been shown that employees with a decent length of annual leave are generally more motivated and productive.

"The only worry we had was if the regulations were going to be introduced all at once, which would have had a detrimental effect on businesses.

"Now small firms can prepare for the changes over the two years, which should mean that the cost impact is minimal."

For information, visit the Department of Trade and Industry website at www.dti.gov.uk/empl oyment/holidays/index.html