Business groups criticise plans to extend holiday entitlement
January 18, 2007
Business groups have criticised Government plans to increase statutory minimum holiday entitlement for full-time workers from 20 to 28 days.
The proposed legislation would prevent employers from including the current eight bank holidays as part of employees’ 20-day annual leave.
"This is an issue that should be left to the discretion of employers," said Forum of Private Business spokesman Matt Hardman. "If these proposals are implemented, the productivity of some small firms will be hard hit, because each year they will lose eight working days per employee."
Confederation of British Industry deputy director-general John Cridland claimed that the increase in holiday entitlement would cost employers £4 billion a year.
"These changes will be costly, but we welcome the fact that the increase is planned to be phased in over two years to allow businesses time to absorb the expense," said Cridland.
The Government wants to phase in the additional leave in two stages: an increase from 20 to 24 days from 1 October 2007; followed by an increase from 24 to 28 days from 1 October 2008.
According to the Department of Trade and Industry (DTI), six million employees stand to benefit from the proposed increase to holiday entitlement.
"Most companies recognise that good holiday provision makes good business sense. It can be a key factor in recruiting and retaining staff," said Jim Fitzpatrick, Employment Relations Minister.
"Holidays are also important for productivity, because they help minimise sick leave and keep people motivated and refreshed," he continued.
"These proposals would protect vulnerable workers and allow reputable businesses to compete on a more level playing field with those firms that give employees only the minimum holiday entitlement."
The increase would move UK workers’ annual leave entitlement closer to that of workers in some other European countries.
Currently, workers in Ireland are entitled to 29 days, while Austrian employees receive 38 days. The DTI has launched a second consultation on the implementation of the changes. Businesses have until 13 April to participate.
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