By Jill Lee

EMPLOYEES will soon of entitled to four extra days annual leave following a change in the law. From April 1 next year, the minimum statutory entitlement increases from 4.8 to 5.6 weeks a year and businesses need to be aware of how these changes will affect them.

Business Link has prepared an online guide to implementing increased holiday entitlement, at businesslink.gov.uk/north east The guide identifies what your business needs to do to comply with regulations and provides an interactive tool to calculate increased holiday entitlement.

Individual employees must negotiate with staff if the increased leave will include public holidays, as paid time off does not legally have to be provided for these holidays and can be included in workers’ minimum leave entitlement. In the UK, public holidays include bank holidays, common-law holidays and holidays by royal announcement.

Holiday pay should be based on a normal week’s wage and part-time workers are entitled to the same holidays as full-time workers on a pro-rata basis.

Under the Working Time Regulations Act, employees are entitled to a week’s pay for each week of leave – calculated according to the type of work performed.

Workers on fixed contracts are entitled to receive payment due for a week’s work.

For those on variable pay and hours, payment should equal the average hourly rate multiplied by the normal working hours in a week. For shift workers, payment is calculated on the average weekly hours of work in the preceding 12 weeks at the average hourly rate.

In most cases it is unlawful to provide payment in place of time off, for health and safety reasons.

Payment in lieu is normally only allowed when employment comes to an end. However, payment in lieu of taking remaining holiday at the end of a leave year may be offered.

Currently, this is only allowed for contractual entitlement above the statutory four week minimum. From next April, payment in lieu cannot be provided for anything less than 5.6 weeks.

Employers will need to notify staff in writing of any changes through a letter to staff or by a statement on pay slips.

■ Business Link’s team of expert brokers operate across the region. Visit business link.gov.uk/northeast or call 0845-600-9006.