Why employees might not be entitled to the 2022 bonus bank holiday (2024)

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Written by Alexandra Farmer on 8 July 2021

Why employees might not be entitled to the 2022 bonus bank holiday (1)

There are few things Brits love more than a summer bank holiday, and next year we will be treated to one more than usual.

2022 will be the Queen’s Platinum Jubilee, marking 70 years on the throne. As the first British monarch to reach this historic milestone, celebrations are set to be big. The Culture Secretary has announced an “extensive programme of public events” in London and other major cities – comprising of street theatre, dance, circus acts and marching bands – as well as traditional nationwide fanfare and local community events.

To mark the occasion, the government has confirmed an additional bank holiday on Friday 3 June. The traditional late May bank holiday will also be pushed back to Thursday 2 June, meaning employees may be able to enjoy an extra-long four-day weekend.

The key word here is ‘may’. As an employer, you might be wondering whether employees can demand this extra day off. The answer is, it depends.

Unfortunately for employees, there is no statutory right to time off for bank/public holidays. However, employers may choose to include these days as part of employees’ annual leave entitlement.

Therefore, before employees rush to buy union jack bunting or book mini-breaks, both parties should refer back to the contract of employment, as whether employees are entitled to time off on 3 June will very much depend on the specific wording of such clauses.

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Within an employee’s contract, holiday entitlement will typically be expressed as either:

  • X days’ holiday, plus bank holidays; or
  • X days’ holiday, which includes bank holidays.

This will be a key factor in whether they can take advantage of any new bank holidays.

For example, if the contract states something along the lines of:

“You are entitled to X days’ paid holiday each year. In addition, you are entitled to take public holidays.”

then as bank holidays are included on top of the employee’s annual leave allowance, and as the contract doesn’t stipulate the exact number they are entitled to, the employee will be contractually entitled to take and be paid for the extra bank holiday on 3 June.

However, the employee’s contract may instead state:

“You are entitled to X days’ holiday during each holiday year. This is inclusive of any of the normal public holidays that you are permitted to take. The business recognises the following public holidays…”

In this situation, because bank holidays form part of the employee’s set holiday entitlement, and because you have expressly provided the public holidays in question, the employee won’t have a contractual right to the extra bank holiday in 2022.

Why employees might not be entitled to the 2022 bonus bank holiday (5)

School support staff on the Green Book will be entitled to the additional bank holiday, with a normal day’s pay for this (pro-rata for part-time employees).

In addition, the Department for Education has laid regulations to reduce the school year from 190 days to 189 days for the academic year 2021-22, as a result of the additional bank holiday. For many staff, this may result in a reduction in their working year. The question is, where does that leave Term-Time Only (TTO) staff’s pay and leave entitlement?

The Green Book Part 4.12 Para 13.2 clearly states that “If the Government announces an additional public holiday(s), a TTO employee’s pay should reflect the additional public holiday or an additional period of paid leave during term-time could be granted”.

For those TTO staff who are contracted to work either 190 or 195 days per year, the NJC has advised that there is no need to adjust pay as they will receive the same pay but for one less day’s work. However, for some TTO employees, if their working pattern is such that they wouldn’t actually be working on that day, so there is no reduction in the working year, you will need to consider adjusting their pay to reflect the additional pro-rata paid holiday entitlement for the bank holiday.

For more information, see the guidance and worked example given by the NJC.

For TTO staff not covered by the Green Book, similar considerations will apply if you are giving comparable full-time staff the bank holiday to avoid claims of less favourable treatment on the basis of their part-time status.

If you intend to shut up shop for the day, and your contracts don’t give employees the right to the extra bank holiday, employers have two options.

First, you can require employees to use a day of their normal annual leave entitlement on 3 June so that they don’t miss out on a day’s pay. Employers have plenty of time to do this, but it would make sense to get the date in the diary well in advance. We recommend confirming this in writing to avoid any issues.

Alternatively, you could choose to permit an extra day’s paid leave as a discretionary gesture. After the events of 2020/21, the nationwide celebrations – which are being described as “something of a reopening ceremony for the United Kingdom” – could provide a much-needed morale boost as well as an opportunity to show your appreciation to your staff. Given the well-documented benefits of reward and recognition, this may pay dividends.

Inadequate or outdated contracts can present real problems for employers, as well as expose your business to legal risk. Our Employment Law specialists know exactly what makes a good employment contract, from the essential legal requirements right down to the subtle nuances in wording that can help to protect your interests.

To ensure that yours are robust, compliant, fit for purpose and offer maximum flexibility for your organisation, call 0345 226 8393 now or request your free consultation using the button below.

Get your FREE consultation

Why employees might not be entitled to the 2022 bonus bank holiday (2024)

FAQs

Can you get paid on a bank holiday? ›

As a result, a bank holiday can wrinkle your payroll processing timeline and desired pay date. If a payday falls on a bank holiday, your employees have to wait until the next business day to access their wages—unless you take action and run payroll one business day earlier. Say you typically pay employees on Friday.

Why do banks take holidays off? ›

Banks are closed on federal holidays because the Federal Reserve, a government agency, is closed. Congress began designating federal holidays in 1870 to grant federal employees paid time off.

Can a company take back a bonus if you quit? ›

Can a Company Withhold Your Bonus If You Quit or Get Fired? With discretionary bonuses, the short answer is yes, a company can withhold those bonuses. Because discretionary bonuses are at the employer's sole discretion and not contract- or performance-based, you will not likely be able to recover them.

How do you calculate holiday bonus? ›

They usually range from 5-10% of your year's earnings. For example, if your salary is $50,000 a year, your holiday bonus can vary from $2,500 to $5,000.

How to work out bank holiday entitlement? ›

For example, if full-time staff work an average 40 hours per week (8 hours per day) and are entitled to 8 paid bank holidays per year, this would be 64 hours per year of bank holiday entitlement (8hrs x 8). 8 bank holiday days x 8 hours per day = 64 hours.

Can you process payroll on a bank holiday? ›

Payrolls and direct deposits do not process on Federal Bank Holidays . If a bank holiday falls on the day you typically run payroll, pay employees, or anytime in between, you must run your payroll on a different schedule.

What is the purpose of a bank holiday? ›

Bank Holidays Act 1871

To promote the study of Science, both in Secondary and Primary Schools. To quicken the repayment of the National Debt. To secure some additional holidays, and to shorten the hours of labour in shops.

Why were bank holidays necessary? ›

The study concludes that the Bank Holiday and the Emergency Banking Act of 1933 reestablished the integrity of the U.S. payments system and demonstrated the power of credible regime-shifting policies.

Does bank holiday delay payments? ›

Generally, when a direct deposit is scheduled to hit your bank account on a bank holiday, you must wait an extra business day for the transaction to process. Some employers anticipate upcoming holidays and adjust their payroll schedule to send out payments before the holiday so you can get paid sooner.

Can a company cut your bonus without notice? ›

Under California law, any bonuses and commissions that an employee receives from their employer are considered earned wages. The law clearly states that employers, for the most part, cannot withhold or deduct wages that the employee already earned.

Can your employer make you pay back a bonus? ›

Most courts consider the signing bonus in exchange for the repayment agreement to be a valid contract. Thus, an employee who accepts a signing bonus and agrees to the terms of the repayment agreement, will be held liable for repayment of the bonus money if he/she violates the terms of the agreement.

Can my employer claw back my bonus? ›

However, if the bonus payment is purely or significantly at the discretion of the employer, there may be scope for an employer to introduce a clawback provision as a new condition before or at the time that the bonus is awarded, but the employee must expressly agree to the clawback clause.

Who gets a Christmas bonus? ›

To be eligible for the Christmas bonus, you will need to be a resident in the UK, Channel Islands, Isle of Man or Gibraltar and be in receipt one of the following benefits during the qualifying week: Adult Disability Payment. Armed Forces Independence. Attendance Allowance.

How do I ask for holiday bonus? ›

Here's a list of steps for writing a bonus request letter:
  1. Draft the structure of your letter. ...
  2. State why you're requesting the bonus. ...
  3. Provide evidence for why you're requesting the bonus. ...
  4. Invite the supervisor to discuss the bonus with you further. ...
  5. Proofread your letter before you deliver it.
Jun 28, 2024

Can I give my employees cash bonuses? ›

Bonuses may be made to employees in a number of different ways from company stock and ownership, through their paychecks, or in cash. Any bonus, whether it's in cash or in kind, is seen as a token of gratitude from the employer for a job well done.

Will I get paid before or after a bank holiday? ›

Generally, when a direct deposit is scheduled to hit your bank account on a bank holiday, you must wait an extra business day for the transaction to process. Some employers anticipate upcoming holidays and adjust their payroll schedule to send out payments before the holiday so you can get paid sooner.

Do banks process payments on bank holidays? ›

Banks can't process standing orders, direct debits, and salary payments over the weekend and bank holidays. These types of payments require processing during standard business hours on working days. If scheduled on a weekend or bank holiday, these payments will be delayed until the next business day.

Can you get paid direct deposit on a holiday? ›

When the Federal Reserve is closed on holidays, money doesn't get transferred, AKA direct deposits won't go through on those days. And while most banks follow suit and close their doors, some remain open but offer minimal services.

Will I get my direct deposit today? ›

Usually, you'll have access to your direct deposit at the opening of business on your payday — by 9 a.m. In many cases, direct deposits hit accounts even earlier, often between midnight and 6 a.m. on payday morning. But there are factors that can affect how long it takes your direct deposit to become available.

References

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