King's Coronation: Is there an automatic right to the additional Bank Holiday? Don’t bank on it!

The King’s coronation is set for 6th May 2023.  Whether or not it is the pared-down event being reported that it might be, or a regal extravaganza like no other, remains to be seen. What appears to have undeniably generated the most excitement, however, is the prospect of an additional bank holiday on 8 May in honour of the occasion. 

In a climate where businesses are under increasing pressure to deliver results with fewer financial and personnel resources, one question employers are asking is: do my workers have an automatic right to take paid time off on a bank holiday? 

The quick answer is no, there is no automatic right to take time off on a public holiday. 

The statutory minimum holiday allowance in the UK is 28 days, comprising 20 days required by the EU Working Time Directive and a further 8 additional days (to correspond with the usual 8 bank/public holidays in England and Wales) under the UK’s Working Time Regulations.  The starting point, therefore, is that only eight paid bank holidays are accommodated by the legislation. 

Ultimately, however, the issue will boil down to the contract.  The way holiday and bank holidays are expressed in the worker’s contract will be key to determining whether or not they are entitled to take the extra bank holiday. 

For example, if the wording of the contract provides that a worker is entitled to: “… X days’ holiday including bank and public holidays”, they will be entitled to take the additional bank holiday as paid holiday, but this will ultimately be deducted from the worker’s overall holiday entitlement. 

If the contract's wording provides that the worker is entitled to: “…X days’ holiday plus bank holidays”, this does not limit the number of bank holidays to which the worker is entitled and so they can benefit from the extra paid bank holiday.

Conversely, if the wording of the contract refers to the worker being entitled to the “usual” bank holidays in England and Wales (or expressly names each bank/public holiday) then the worker will not be automatically entitled to the additional paid bank holiday (because there are usually only eight bank/public holidays a year). They would need to take a day from their other annual leave entitlement if they wanted the time off.

The following summarises the position:

Contract Wording

  1. “X days including bank holidays in England and Wales”
  2. “X days in addition to bank/public holidays in England and Wales”
  3. "X days in addition to the usual bank/ holidays in England and Wales”
  4. X days in addition to New Year’s Day, Good Friday, Easter Monday, May bank holidays (x2), August Bank Holiday, Christmas Day and Boxing Day

Entitlement to an additional bank holiday?

  1. Yes – but this will be deducted from the overall holiday entitlement.
  2. Yes – as the number of bank holidays is not specified
  3. No – only the usual 8 bank/public holidays are included.
  4. No – the bank holidays that can be taken are specified. 

Furthermore, if the contract allows the employer to ask the worker to work on a bank holiday then, again, there is no automatic right for the employee to receive paid time off on the bank holiday itself. Whether or not they are then entitled to a day off in lieu at a later date will depend on how the contract refers to the bank holidays as explained above. 

Clearly, regardless of the contractual position, employers may wish to close their businesses for the day anyway.  If this means that staff will need to book a day’s annual leave to do so, employers will need to ensure that they have a contractual right to require workers to take holiday upon request or otherwise ensure that sufficient statutory notice to take holiday is served (i.e. at least two clear working days). 

Whilst the above represents the strict legal position, when deciding whether or not to give workers the day off, employers should also consider the effect that not doing so may have on employee relations.  A disgruntled workforce can have as much of a detrimental impact on business productivity (possibly, over a longer period of time) than a one-off, additional day’s closure.   Employers should never underestimate the goodwill that flexibility on such issues can generate.  You never know, you may end up being crowned (pun intended!) Employer of the Year!

Expert
Sheilah Cummins
Senior Associate