REWARD
An extra bank holiday for the King’s Coronation: what are the implications for employers?
Danny Done, managing director of Portfolio Payroll, explains key considerations for employers in relation to the additional bank holiday in 2023
I t’s been confirmed there’ll be an additional bank holiday this year, to mark the Coronation of King Charles III. Monday 8 May 2023 has been designated as a national bank holiday, to give families and communities across the UK the opportunity to come together and celebrate. Employers may have already had to manage the introduction of additional bank holidays in a leave year due to there being two extra days in 2022: one to commemorate the Queen’s Platinum Jubilee and another to mourn her death. However, it’s useful to review the contractual position on bank holidays to assess employer obligations in these situations. The importance of wording in employment contracts First, there’s no statutory right to time off on bank holiday days, but entitlement is usually set out in the contract of employment. There are many different variations of the contractual wording surrounding annual leave, so this should be carefully considered to avoid any unintentional breaches. Contracts which provide staff with ‘20 days’ annual leave plus eight bank holidays’ won’t entitle staff to the additional day. However, if the contract doesn’t set out the specific days which are allocated as bank holidays, for example, ‘Christmas Day’ or ‘early May holiday’, then the employee may choose to use part of their bank holiday entitlement to be off on Monday 8 May 2023 for the King’s Coronation and work one of the other bank holiday days in the leave year. Employers should encourage staff to follow normal annual leave booking rules where this applies. Similarly, should the contract entitle
to allow the additional day, especially if it was given previously, it’s even more important to ensure all employees are aware that they’ll be expected to work as usual on Monday 8 May 2023. An explanation of how the contractual wording sets entitlement can be greatly beneficial at maintaining employee relations and avoiding disputes. Regardless of entitlement to the additional day, employers may wish to close on Monday 8 May 2023. In such situations, employers have the option of requiring employees to take a day of annual leave. To enforce time off, they must provide staff at least double the amount of notice as the duration of the leave. For example, at least two days’ notice is needed to require staff to take one day of leave. On the other hand, some organisations will want to remain open on the additional bank holiday, such as hospitality venues, who may be exceptionally busy. Here, employers should review contractual wording to ensure they can require staff to work – the previously mentioned flexibility clause will help support employers in this situation. Some may want to consider offering an incentive, such as enhanced pay rates, to work the bank holiday. Others could think about allowing a more relaxed dress code, early finishes or free snacks / refreshments. While there’s no obligation to do so, simple measures such as this can go a long way in improving employee relations, as staff feel recognised and valued for their work. In turn, this contributes to improved performance and productivity levels. n
staff to ‘28 days including bank holidays’, there will be no obligation to provide an extra day off, but employees may wish to book Monday 8 May 2023 as part of their available entitlement, subject to normal processes and approval. Alternatively, contracts which state employees receive ‘20 days’ annual leave plus bank holidays’ will be contractually entitled to the additional day off. Employers who don’t allow leave on Monday 8 May 2023 will therefore be breaching the terms of the employment contract. Some contracts will allow for flexibility with the days that are to be taken as a bank holiday, meaning that employers may require the employee to work on the bank holiday listed, but offer an alternative day off instead. This flexibility can be expressed in different ways but may read as, ‘you are entitled to the following bank holidays, or alternative days as decided by us’. Where this flexibility exists, employers can rely on it to designate whatever day they wish as a bank holiday. Where employers have previously provided staff with additional bank holiday days, despite there being no contractual entitlement (e.g., allowing an extra day off for the Queen’s Jubilee in June 2022), this doesn’t necessarily mean they must allow it every time the government announces additional bank holidays. As such, they’re not bound by precedent, nor under any obligation to follow the same arrangements as they have done in the past. Communication is key It’s useful for employees to clearly inform the workforce of their entitlements to remove any potential confusion in this regard. Should the employer not wish
| Professional in Payroll, Pensions and Reward | March 2023 | Issue 88 48
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