Date: 2007-01-12
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New research has shown that up to six million workers would benefit from an extra eight days holiday each year under the plans. Some employers currently include the eight bank holidays as part of workers' 20-day annual leave entitlement (pro-rata for part-timers).
(Media-Newswire.com) - Jim Fitzpatrick, Employment Minister, today announced the Government's proposals to increase workers' holiday entitlement from 20 days per year to 28.
New research has shown that up to six million workers would benefit from an extra eight days holiday each year under the plans. Some employers currently include the eight bank holidays as part of workers' 20-day annual leave entitlement (pro-rata for part-timers).
The Department of Trade and Industry (DTI) is launching a second public consultation on the implementation of the changes. Statutory annual leave entitlement would be increased in two stages, rising from 20 to 24 days on 1st October 2007, and from 24 to 28 days on 1st October 2008.
Research by the DTI found that groups standing to benefit most from the changes include women, part-time workers, low-paid workers and workers from minority ethnic communities.
The move would protect vulnerable workers and allow reputable companies to compete on a more level playing field with those companies that give employees only the minimum of holiday entitlement.
Jim Fitzpatrick, DTI Minister for Employment Relations, said:
"Most companies already recognise that good holiday provision makes good business sense. Holiday entitlement can be a key factor in recruiting and retaining staff. Holidays are also important for productivity as they help minimise sick leave and keep people motivated and refreshed.
"We've worked closely with business and have wanted to make sure that they have time to prepare for the changes.
"People work hard and they deserve a decent break. We want to make sure everyone gets the holiday they are entitled to."
An increase would move UK workers' annual leave entitlement closer to that of workers in other European countries, where holiday allowance is typically more generous. Compared with the current minimum allowance of 20 days in the UK, for example, workers in Ireland are entitled to 29 days; the highest minimum entitlement is in Austria at 38 days.
The DTI has already consulted widely on the increase and has sought the views of business and trade bodies. The cost to business is expected to be around 0.4% of the wages bill.
Notes to Editors
1. Increasing the holiday entitlement - a further consultation, can be found at http://www.dti.gov.uk/employment/holidays/index.html;
2. The cost to businesses is expected to be around £4 billion per year, while the cost of absenteeism in the workplace is estimated to be about £11.6 billion a year;
3. Below is a table with the regional breakdown of the number of people that are set to benefit from this announcement:
Total who stand to benefit
Region Number of people % of workers in that region
who stand to that will benefit
benefit
North East 300,000 13%
North West 800,000 21%
Yorkshire and 500,000 20%
Humber
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%
4. The right to 20 days paid holiday was introduced by the government in 1998. The government held an initial consultation that closed on 22 September 2006 and received over 300 responses. Details of the initial consultation, including the Government response, can be found at the above website; and
5. The consultation closes on 13 April 2007.
Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET
Public Enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740
(for those with hearing impairment)
http://www.dti.gov.uk
Client ref Reference P/2007/8