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Update on Increased Holiday Entitlement

The Department of Trade and Industry (DTI) has launched a further consultation on the increasing of holiday entitlement. This follows the initial consultation that concluded in September last year and includes further details on how the Government proposes to make paid time off for bank holidays additional to the four weeks’ holiday entitlement.

The increase in holiday entitlement was a manifesto commitment and that there is limited scope for changing the Government’s objectives on this highly political topic. We will, however, continue to take forward the legitimate concerns of REC members – particularly with regards to the potential cost implications. Temporary workers in the main receive 20 days holiday a year (equivalent to 8.33% on top of their hourly rate). The extension of holidays to 28 days a year will add a further 3% on top of their hourly wages. The REC has emphasised the fact that this is a cost that will be difficult to bear in a competitive market where margins are already tight. It has also been argued that a 13 week qualifying period should be considered to help mitigate against this expense.

The current consultation confirms that the statutory entitlement to paid holiday will be increased from four weeks to 4.8 weeks from 1 October 2007, and from 4.8 weeks to 5.6 weeks on 1 October 2008. Views are being sought on the implementation of the new holiday provisions and on the guidance that will be needed to help employers and agencies introduce the new entitlement.
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Published: 23 January 2007      Ref: REC News

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