With fewer bank holidays in 2024-25, some employers may unknowingly fall short of statutory leave entitlement – potentially putting organisations at risk of legal claims. If your holiday year runs from April to March, some employees may not receive the full 28 days’ leave required under the Working Time Regulations.

Why are there fewer bank holidays in 2024-25?

Most years, England and Wales have eight bank holidays. However, due to Easter falling later in 2025, there are only seven between 1 April 2024 and 31 March 2025.

This could impact employers who provide statutory minimum holiday entitlement, particularly if their holiday year follows the April to March cycle.

The law and Working Time Regulations

Under the Working Time Regulations, employees are entitled to 28 days of annual leave, including bank holidays. This entitlement may be included in employment contracts as part of the overall leave allowance.

The reduction in the number of bank holidays this year could lead to a shortfall in the total leave entitlement if employees’ contracts specify a set number of days off plus bank holidays.

What to check for

To avoid issues, employers need to check how their contracts allocate holiday entitlement:

• If a contract states “28 days, including bank holidays”, the reduced number of bank holidays this year has no effect. Employees still receive their full entitlement.
• If a contract states “20 days plus all bank holidays”, an issue arises. With only seven bank holidays this year, affected employees would receive 27 days, which is below the statutory minimum.

What you can do now: Low-risk versus higher-risk approaches

If you’ve identified that your employees are affected, you have two main options to address the shortfall:

• Low-risk approach: Grant affected employees an extra day’s leave before 31 March 31 2025. This ensures compliance with the Working Time Regulations and avoids any potential claims for underpayment.
• Higher-risk approach: Do nothing. However, this could lead to claims for unlawful deduction from wages due to non-compliance with statutory holiday entitlement.

Steps employers should take now

1. Review your contracts: Ensure you are clear on how holiday entitlement is allocated, particularly in relation to bank holidays.
2. Decide on a course of action: If your employees’ contracts are affected, decide how best to address the shortfall.
3. Communicate changes or clarifications: Once you’ve decided on a course of action, make sure to communicate any changes or clarifications to your employees as soon as possible to ensure transparency.

By acting now, employers can ensure compliance and avoid any risk of underpayment claims.