During England’s FIFA World Cup campaign, former Prime Minister Sir Keir Starmer suggested that an extra bank holiday could be considered if England won the tournament. England did not go on to win the World Cup, so the proposed holiday never materialised. However, the discussion raised an important and recurring question for employers: what happens to employee holiday entitlement when the government announces an additional bank holiday?
One-off bank holidays are not unprecedented. They may be introduced to mark royal events, national celebrations or other occasions of public significance. When this happens, employees often assume they will automatically receive an extra paid day off. The legal position is more complicated and will usually depend on the wording of the employment contract.
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For employers and HR professionals, preparing in advance can help prevent confusion, maintain consistent treatment across the workforce and reduce the risk of disputes when future additional bank holidays are announced.
Employee Holiday Entitlement: Are Employees Automatically Entitled to an Extra Bank Holiday?
Employees do not have an automatic statutory right to paid leave on a bank holiday. Under the Working Time Regulations 1998, most workers are entitled to a minimum of 5.6 weeks’ paid annual leave each holiday year. For an employee working five days a week, this normally amounts to 28 days. Bank holidays may be included within that statutory entitlement.
Whether an additional bank holiday increases an employee’s holiday entitlement will therefore depend largely on the wording of their contract. Where a contract states that an employee is entitled to “20 days’ annual leave plus bank holidays”, an extra bank holiday will generally form part of the employee’s contractual entitlement. The wording suggests that the employee is entitled to all bank holidays in addition to their ordinary annual leave allowance.
The position may be different where a contract provides for “28 days’ annual leave inclusive of bank holidays”. In that situation, the employee is entitled to a fixed total allowance, and an additional bank holiday may not increase the number of days available.
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Similarly, where a contract lists specific bank holidays by name, an unlisted one-off bank holiday may not automatically be covered. Employers may still decide to grant the day as additional paid leave, but they may not be contractually required to do so. This is why employers should avoid making assumptions and review the precise contractual wording before communicating with employees.
How Could an Extra Bank Holiday Affect Employee Holiday Entitlement?
An additional bank holiday may affect annual leave arrangements in several ways. Some employees may receive an extra paid day off because their contracts provide for annual leave plus all bank holidays. Others may be required to use part of their existing annual leave allowance if the workplace closes and their total employee holiday entitlement already includes bank holidays.
Employers may also decide to remain open, particularly in sectors such as healthcare, retail, hospitality, transport, logistics and emergency services. In those cases, employees may be expected to work if their contracts permit bank holiday working.
Importantly, there is no general statutory right to enhanced pay for working on a bank holiday. Any entitlement to double pay, time off in lieu or another premium will depend on the employee’s contract, collective agreement or established workplace practice. Employers should therefore consider not only whether staff will receive the day off, but also how the day will be treated for employees who are required to work.
What Should Employers Check in Employment Contracts?
The first step should be to review the wording of employment contracts and annual leave policies. Employers should determine whether contracts refer to a fixed number of days, named bank holidays or all bank holidays generally. Small differences in wording can produce significantly different outcomes.
A contract providing “25 days plus the usual bank holidays” may require further interpretation, particularly where the additional holiday is a one-off event rather than part of the usual annual calendar. Employers should consider the wording carefully and obtain legal advice where the position is uncertain.
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Organisations may also find that different groups of employees are subject to different contractual terms. Long-serving staff may have older contracts, while newer employees may have more modern or standardised wording. This can lead to different entitlements within the same workforce.
Different treatment is not necessarily unlawful where it arises from genuine contractual differences. However, employers should ensure that decisions are applied consistently within comparable groups and clearly explained.
Could Employers Require Staff to Take Annual Leave?
Employers can generally require workers to take annual leave on particular dates, provided they give the required notice. The usual notice requirement is at least twice the length of the leave the employee is being required to take. For example, an employer requiring an employee to take one day of annual leave would normally need to provide at least two days’ notice.
However, employment contracts or workplace policies may contain different notice provisions. Employers should therefore check their existing terms before requiring employees to use annual leave for an additional bank holiday.
Short-notice government announcements can create practical difficulties. Where an extra bank holiday is announced close to the proposed date, employers may not have enough time to provide the usual notice. In those circumstances, agreement with employees may be the most practical approach.
Employers should also think carefully before deducting a day from employees’ annual leave without clear contractual authority or adequate notice. Doing so may lead to grievances, unlawful deduction allegations or disputes about employee holiday entitlement.
What About Part-Time Employees?
Part-time employees are entitled to paid annual leave on a pro rata basis and must not be treated less favourably than comparable full-time employees simply because they work part-time. Bank holidays can create difficulties where they fall on a day that a part-time employee does not normally work. If full-time employees receive the benefit of an additional paid holiday, the employer should consider whether part-time employees are receiving an equivalent pro rata benefit.
For example, automatically granting paid leave only to employees who normally work on Mondays may disadvantage part-time employees whose non-working day is Monday. Employers should therefore consider calculating annual leave in hours or providing a pro rata bank holiday allowance. A consistent and transparent approach can help avoid less favourable treatment claims and ensure that all employees receive the correct proportion of leave.
Managing Employees Who Must Work
Not every business can close for a bank holiday. Employers that require employees to work should check whether contracts include an obligation to work on public or bank holidays.
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Where such a requirement exists, employees will normally be expected to attend work unless annual leave has been approved. Where contracts are silent, employers may face greater difficulty imposing bank holiday working at short notice, particularly if employees have historically been given the day off.
Employers should also clarify whether employees who work will receive enhanced pay, time off in lieu or their usual rate of pay. Any established custom and practice should be considered, as regularly providing enhanced benefits may have created an expectation or contractual entitlement.
Fairness will be particularly important where only some employees are required to work. Employers should use clear and objective criteria when allocating shifts and avoid assumptions based on age, caring responsibilities, religion or other protected characteristics.
Equality and Discrimination Considerations
Decisions concerning additional bank holidays should be reviewed for possible discrimination risks. For example, requiring employees to work without considering individual circumstances may disproportionately affect workers with childcare or caring responsibilities. Refusing requests inconsistently may also create concerns about indirect sex discrimination, as women continue to undertake a greater proportion of caring responsibilities in many households.
Employers should also consider disabled employees who may require adjustments to working arrangements, as well as employees whose religious observance may interact with holiday requests around the same period. This does not mean that every request for time off must be approved. Employers can take account of genuine operational requirements. However, decisions should be reasonable, consistent and supported by evidence.
How Employers Should Prepare for Future Extra Bank Holidays
Employers should not wait for the next national announcement before considering their approach. Employment contracts and annual leave policies should clearly explain whether bank holidays are included within statutory holiday entitlement or provided in addition to it. The wording should also address how one-off or newly announced bank holidays will be treated.
Businesses should identify which roles must continue operating during bank holidays and establish how staffing will be managed. Any entitlement to enhanced pay or time off in lieu should be documented clearly.
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Employers should also prepare a communication process so that employees receive accurate information as soon as an additional bank holiday is confirmed. Managers, HR teams and payroll departments should provide a consistent message about whether the organisation will close, whether staff will be paid and whether annual leave will be deducted.
Where employers choose to grant an additional paid day off despite having no contractual obligation to do so, they should make clear that the decision is discretionary and applies to that specific occasion. This may help prevent the arrangement from being treated as a permanent contractual benefit in the future.
Why Advance Planning Matters
Additional bank holidays are often announced to mark significant national occasions, which means employers may have limited time to respond. Without proper planning, organisations may face uncertainty over staffing, payroll, holiday deductions and employee expectations. Different managers may provide conflicting information, leading to complaints and inconsistent treatment.
A clear contractual position allows employers to respond quickly and fairly. It also enables employees to understand what they are entitled to and make appropriate arrangements. Handled well, an extra bank holiday can support employee morale and allow organisations to participate in a national event. Handled poorly, it can result in grievances, operational disruption and disputes over pay or annual leave.
Employee Holiday Entitlement: Our Final Thoughts
The discussion surrounding a possible extra bank holiday following the FIFA World Cup did not result in an additional day off, but it highlighted an issue that employers are likely to encounter again. An extra bank holiday does not automatically increase employee holiday entitlement. The legal position depends primarily on the wording of the employment contract, the organisation’s annual leave policy and any relevant workplace practices.
Employers should review contractual terms, consider the position of part-time staff, plan for employees who may need to work and communicate decisions clearly. They should also ensure that any approach is applied consistently and does not create avoidable discrimination risks.
By preparing before the next one-off bank holiday is announced, employers can protect business continuity while managing employee holiday entitlement fairly and lawfully.
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