Department for Business, Innovation and Skills
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Extra holidays for up to six million workers

Extra holidays for up to six million workers

DEPARTMENT OF TRADE AND INDUSTRY News Release (P/2007/111) issued by The Government News Network on 12 June 2007

Six million workers in Britain were today promised up to eight extra days annual holiday with the first four coming in October this year. The extra holidays will benefit up to 3.5million women and 2.5million men.

The Government has published new regulations to boost the minimum holiday entitlement from 20 days a year to 24 days this October, and to 28 days from April 2009.

Jim Fitzpatrick, DTI Employment Relations Minister said:

"This extra time off will make a real difference in the lives of hard-working people - a proper rest from work and more time to spend with their families and friends.

"Businesses will benefit too - from reduced absenteeism and a workforce who are more motivated and productive.

"We have listened to all parties responding in the latest consultation, and we have agreed a number of changes in the way the new holidays will be brought in."

This means:
* To encourage early implementation and simplify arrangements for good employers who decide to offer their workers the entitlement faster, the regulations state that those companies who offer their workers 28 days leave or more by 1 October 2007 and meet certain other related standards will not be bound by the new legislation, so long as they continue to meet these standards.
* As a transitional measure, companies will be allowed to continue to buy out the additional leave entitlement (the four extra days) introduced from October 2007 until 1st April 2009.
* After 1st April 2009 the buyout of any of the additional leave entitlement will cease.
* All part-time workers will be entitled to the extra holidays pro-rata.
* The DTI will set up an online calculator to make it simpler for everybody to work out their new holiday entitlement

The Government's response to the latest consultation is attached.

Editors Notes

Early Implementation Incentive
Businesses which offer their full time workers, by 1st October 2007:
* at least 28 days leave or more;
* who allow buy out of leave only in excess of 28 days, if at all; and
* where they allow carry over of leave between 20 and 28 days, it is only to the following year
They will not be bound by the new legislation, so long as they continue to meet these standards of leave provision. (These arrangements will operate pro-rata for part timers).

1. Below is a table with the regional breakdown of the number of people that are set to benefit from this announcement:

Region                   Total who stand               To benefit
                          Number of people who     % of workers in that
                              stand to benefit  region who will benefit
      North East                       300,000                       13
      North West                       800,000                       21
      Yorkshire & Humber               500,000                       20
      East Midlands                    500,000                       23
      West Midlands                    500,000                       19
      South West                       400,000                       15
      East of England                  500,000                       17
      London                           800,000                       23
      South East                       900,000                       18
      Wales                            300,000                       20
      Scotland                         400,000                       15
      Total                          5,900,000                       19 


2. 2.6 million part-time staff (31% of part-timers) will benefit, and 3.4 million full-time workers (14% of full-timers)

3. Agegroups

16-24 1 million
25-34 1.4 million
35-44 1.6 million
45-49 0.5 million
50+ 1.5 million

4. Details of previous consultations on extending holiday entitlement can be found on: http://www.dti.gov.uk/employment/holidays/index.html

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