Statutory holiday entitlement changes no joke for SMEs?

The change to minimum statutory holiday entitlements could cost small businesses dear at a time when most need all hands on deck.

By News Desk
24th March 2009 at 12:52

More time on the beach - changes to statutory holiday allowanceAs from 1 April 2009, the minimum statutory holiday entitlement for all full time employees working five days a week will rise from 24 days to 28 days.

Although most small business owners recognise the productivity and motivational benefits of a generous holiday entitlement, the timing of the increase in the middle of the recession may seem unfortunate.

For each employee on a minimum wage the 4 day increase in time off will cost in the region of £172 per person per annum, plus the loss of four days work.

Nevertheless, with many staff likely to be working harder, with little prospect of a pay rise, the increase in permitted days holiday could also be seen as a timely positive for employee relations.

Holiday entitlement for part-time workers will need to be calculated on a pro-rata basis.

In another change, payment in lieu of statutory holiday will no longer be permitted although any time off allocated above the legal minimum can still be claimed.

Full details and other practical information can be found at the Business Link website.

[Picture credit: jensen_chua licenced from Flickr]

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