Changes to the Holidays Act 2003 at a glance

Calculation of payments for public holidays, alternative holidays, sick and bereavement leave

• Changes have been made to simplify the calculation of pay for public holidays, alternative holidays, sick and bereavement leave
• A new calculation, ‘Average Daily Pay’, is based on earnings over the last 52 weeks, rather than the current 4 week formula

Cash up of annual holidays

• Employees can now request that up to one week of annual holidays be cashed up
• Employers can accept or decline requests and can even have a blanket policy that they will not cash up

Transferring the observance of public holidays

•  Employers and employees can agree to transfer the observance of a public holiday to another working day, giving people more flexibility

Alternative holidays

• Alternative holidays must not be taken on a public holiday
• If employer and employee cannot agree when an alternative holiday is to be taken, the date will be decided on a reasonable basis by the employer
• 14 days’ notice must be given to the employee of the requirement to take that alternative holiday

Proof of sickness or injury

• Employers can now request proof of an employee’s or dependant’s sickness or injury within 3 days. However employers  must pay the costs of such proof, e.g. a doctor’s visit

The outlined changes will be applicable as of 1 April 2011