Extra Bank Holiday 2023: An Employers Guide

An extra Bank Holiday has been announced for 8th May 2023 to mark the coronation of King Charles III. What does this mean for employers?

Are employees entitled to the extra bank holiday?

No. There is no statutory right to time off on a bank holiday. Whether they are entitled to the holiday will depend on the wording of your contracts. If the contract lists the 8 normal bank holidays then the right to time off only applies to these days. The same will apply if the contract states the “usual bank holidays”.

If your contracts simply say “entitlement to bank holidays” without defining the days or a number then your employees will be contractually entitled to the additional bank holiday.

Due to the two additional bank holidays in 2022, there may be circumstances where it’s not just the written contract that we’re looking at but also what you did for each of the additional bank holidays in 2022. If these were given, employees are likely to expect that they will also be given this bank holiday. Whether or not there is a contractual entitlement in this situation would be a tribunal decision, the reality is, it’s one day and we’re unlikely to see tribunal claims - the greater risk is the motivation of your employees if they beleive they’ll get the day off and it’s not given.

Normally when there is an entitlement to time off for a bank holiday it is with pay, however, this will also be determined by the contract of employment or holiday policy.

Can we require people to work on the bank holiday?

Yes, provided your contracts don’t say “entitlement to bank holidays” without offering any definition.

Unless the contract states otherwise (e.g. saying that all bank holidays attract time off in lieu or additional payment) then Monday 8th May 2023 will be a normal working day.

We will close on the bank holiday, do we have to pay employees for this?

Normally when there is an entitlement to time off for a bank holiday it is with pay, however, this will also be determined by the contract of employment or holiday policy.

If there is not a contractual entitlement to the extra bank holiday you have the option to make people take the extra bank holiday out of their holiday entitlement. You must give employees a minimum of 2 days notice to require them to take 1 day of holiday.

Alternatively, your employees will appreciate you giving the extra holiday with pay.

Wrap Up

Check your contracts, be clear what your employees are entitled to. Assuming there is no contractual entitlement to the time off, make a decision that’s right for your business.

Review your contracts, now is a good time to make sure the wording suits your business needs, not just around additional bank holidays. For help with drafting contracts that protect your business call us today on 01245 910 500.

Article last updated: 6 November 2022