Easter Bank Holidays
How To Manage Easter Bank Holidays
In England and Wales, there are eight recognised bank holidays in every calendar year. Of the eight recognised days, most fall on fixed dates each year, but the two Easter Bank Holidays are flexible because the timing of the Easter weekend changes each year. As the Easter Bank Holidays can fall early in one holiday year and late in the following holiday year it can affect the total number of bank holidays in any one holiday year.
This movement of the Easter Bank Holidays can have an impact on holiday years running from 1 April to 31 March and where the entitlement is limited to the statutory minimum holiday entitlement.
Note: In Scotland, Easter Monday is not an official national bank holiday, though Good Friday is observed across the whole of the UK. Special or additional bank holidays are unusual but we have had a few in recent years for the late Queen’s Platinum Jubilee and funeral and then the Coronation of King Charles.
Why Easter Bank Holidays Can Create A Compliance Risk
The Working Time Regulations provide a statutory minimum holiday entitlement of 5.6 weeks which equates to 28 days for employees who work five days per week. Statutory entitlement can include the eight recognised bank holidays. The entitlement is a statutory minimum which cannot be negotiated out of.
In one calendar year, the Easter weekend can fall in April, and in the following calendar year, it can fall in March; when this happens, there are 10 bank holidays between April and March. In the following holiday year there may be no easter bank holidays, reducing the 8 recognised days to 6. Also Good Friday might fall in one holiday year and Easter Monday in the following holiday year. So it is rarely straight forward.
What Are The Implications Of The Moving Easter Bank Holidays?
When there are no easter bank holidays in one holiday year you risk breaching the Working Time Regulation by given less than the statutory minimum entitlement for that holiday year.
But surely the ten bank holidays in on holiday year balance out the six in the next holiday year? Unfortunately no they don’t, you cannot rely on an increase in holiday entitlement from one holiday year been ‘evened up’ by having less than the statutory minimum in the next year.
- Does your holiday year run from 1 April to 31 March?
- Are your employees entitled to the statutory holiday entitlement of 5.6 weeks?
If you answered YES to both those questions you might need to adjust the annual entitlement each year to take account of the movement of the Easter Bank Holidays.
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Risk Of Getting It Wrong
Statutory holiday entitlement is part of the Working Time Regulations. Employees can raise an employment tribunal claim where their employer has:
- refused to permit them to exercise their right to statutory leave under the WTR;
- failed to pay the employee for all or part of any holiday pay due under the WTR; and
- failed to pay the employee all or part of any pay in lieu of untaken holiday due on termination under the WTR.
The Deduction from Wages (Limitation) Regulations 2014 prevents employment tribunals considering claims going back in more than 2 years from the date of the complaint relating to those deductions. But the Government are considering amending that legislation so claims could potentially go back further in the future.
Easter Bank Holiday Impact On The Next Few Years
The impact of Easter varies from year to year because Good Friday and Easter Monday move depending on the date of Easter. If your holiday year runs from 1 April to 31 March, the number of bank holidays falling within each holiday year can vary significantly.
- 2026-27: Ten bank holidays.
- 2027-28: Six bank holidays.
- 2028-29: Nine bank holidays.
- 2029-30: Seven bank holidays.
- 2030-31: Eight bank holidays.
This variation highlights why employers should review holiday entitlement calculations regularly, particularly where contracts provide a fixed number of days plus bank holidays.
My Recommendations For Managing Easter Bank Holidays
How you deal with the Easter Bank Holidays will depend on the wording in your contract of employment. Here are the common phrases with my recommendations for each one:
28 Days Including Bank Holidays
Where the contract provides 28 days’ holiday including bank holidays, the employee’s total annual entitlement remains 28 days regardless of how many bank holidays fall within the holiday year. Employers should therefore adjust the number of days the employee can take at a time of their choosing to reflect the number of bank holidays in that holiday year.
20 Days Plus Bank Holidays
This wording is often interpreted as giving employees a contractual right to all bank holidays that occur during the holiday year. Where more bank holidays fall within a particular holiday year, the employee’s overall holiday entitlement may increase accordingly.
20 Days Plus 8 Bank Holidays
This clause stipulates that a specific number of Bank Holidays are part of the annual leave entitlement and therefore there is no contractual right to the second Good Friday and Easter Monday in the 2026-27 holiday year. But as in the previous situations caution should be applied with the entitlement for the 2024-25 and 2027-28 holiday years.
20 Days Plus The Following Bank Holidays …..
This clause stipulates that specifically named Bank Holidays are part of the annual leave entitlement and therefore there is a contractual entitlement to the Easter Bank Holidays whenever they fall. As in the previous situations caution should be applied with the entitlement for the 2024-25 and 2027-28 holiday years.
Worked Example
If an employee is entitled to 20 days’ holiday plus bank holidays and ten bank holidays fall within the holiday year, their total entitlement would be 30 days. If only six bank holidays fall within the holiday year, their entitlement would be 26 days.
What If You Have Already Underpaid Holiday Entitlement?
If you discover that employees have received less holiday than they were contractually entitled to in a particular holiday year, you should take steps to correct the position as soon as possible. This may involve granting additional leave, agreeing a short carry-over period or making an appropriate payment.
The best approach will depend on the wording of the contract, the size of the shortfall and how recently it occurred. Taking prompt action can help reduce employee relations issues and minimise the risk of legal claims.
Changing Your Holiday Year
If you do not want to adjust the holiday entitlement each holiday year you can change your holiday year from April to March so you always get one Easter in a holiday year regardless of the exact date it falls on. January to December is a popular alternative.
Changing employees’ contracts is a delicate process that should be planned and navigated very carefully; something I can help you with.
Clear communication is often the most effective way to maintain good employee relations and reduce the risks associated with potential tribunal claims should something go wrong.
Common Mistakes Employers Make
The movement of the Easter Bank Holidays catches many employers by surprise. Common mistakes include:
- Assuming there will always be eight bank holidays in every holiday year.
- Not checking how annual leave clauses are worded in employment contracts.
- Failing to review holiday entitlement when Easter falls outside the holiday year.
- Assuming additional bank holidays in one year compensate for fewer bank holidays in another.
- Applying different holiday calculations to employees without a clear contractual basis.
- Waiting until employees raise concerns before investigating the issue.
A simple annual review of holiday entitlement calculations can help employers identify and correct potential issues before they become employee relations or compliance problems.
Consistency Matters
Holiday entitlement should be calculated and applied consistently across the workforce. Where different contractual wording exists, particularly following acquisitions, TUPE transfers or historic changes to terms and conditions, employers should ensure that entitlement is calculated correctly for each group of employees.
Clear communication and a consistent approach to holiday calculations will help reduce confusion, maintain employee trust and minimise the risk of disputes regarding annual leave entitlement.
How Kea HR Can Help
Annual leave entitlement can be surprisingly complex, particularly where employment contracts refer to bank holidays, holiday years do not run from January to December, or contractual wording has evolved over time.
Many SMEs assume their holiday arrangements are compliant until an employee raises a query or a discrepancy is identified. By then, correcting the issue can be time-consuming and may affect employee relations.
Kea HR can help you review your annual leave arrangements and ensure they are both legally compliant and practical to administer.
- Annual leave entitlement audits
- Review of employment contract wording
- Holiday policy drafting and updates
- Bank holiday entitlement calculations
- Holiday year changes and implementation
- Employee handbook reviews
- Manager guidance and support
Whether you need a quick sense check or a full review of your annual leave arrangements, we can help you identify potential risks and implement practical solutions before they become costly problems.
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