An employer’s guide to UK bank holidays

Bank holidays are an important part of our nation’s history. With the name referencing the original use of bank holidays, allowing the closure of banks. In the modern day most of the private sector closes on bank holidays, giving workers a day off.

As an employer it’s important to observe bank holidays and to acknowledge the importance of them for your staff. In our guide we explain your responsibilities and explain how a leave management system can support you in managing bank holidays and annual leave for your employees.

What is considered a bank holiday?

A bank holiday is a public holiday. A day which recognises religious festivals or marks the date of traditional celebrations.

For example, May Day (the Early May Bank Holiday) recognises the beginning of summertime in the UK but also has roots in farming and agricultural practices dating back to ancient Pagan festivals.

Regardless of its origins, a bank holiday remains very important to workers, with many wanting the day off to spend time with family and friends.

How many bank holidays are in a year?

In England there are 8 bank holidays per year, these are:

• New Year’s Day

• Good Friday

• Easter Monday

• Early May Bank Holiday

• Spring bank holiday

• Summer bank holiday

• Christmas Day

• Boxing Day

Sometimes there may be additional bank holidays in a year. For example, you may remember the additional bank holidays in 2022 for the King’s coronation or to mark the funeral of Queen Elizabeth II.

The UK government has the ability to announce extra bank holidays for special occasions. However, the usual eight bank holidays remain untouched.

Bank holidays typically fall on a Monday, except for Christmas Day and Boxing Day which are date sensitive.

It’s best practice to include how you handle extra bank holidays in your annual leave policy.

Are employees entitled to bank holidays?

While these are known as public holidays, there is no law requiring employers to offer employees a paid day off—it’s your choice.

However, it’s important to consider that many private sector businesses include bank holidays within their employee’s annual leave entitlement.

You can choose to offer the 8 bank holidays within the 28-day allowance, or you can offer them additionally. It’s important to get this right and to include this as clearly as possible within your employment contracts.

What’s important to consider is your choice of wording. Which is often where businesses trip themselves up.

To ensure that employees are clear on their entitlements, you may wish to speak to a HR or employment law advisor who can support you.

Bank holidays for part-time and irregular hours employees

For part-time employees and those on irregular hours the same rules apply. You can choose whether to include bank holidays within their annual leave entitlement or not.

However, your employee may wish to negotiate with you regarding taking paid or unpaid leave, so they have remaining annual leave for the rest of the year. To avoid disputes or a grievance being raised, it is important to recognise the wishes of the employee and to discuss the best options for both you, your business, and your employee.

Have you considered a leave management system?

To avoid the confusion surrounding bank holidays, a leave management system can do the complicated calculations for you. Ensuring that your employee’s annual leave entitlements are accurately calculated according to your employment contracts.

Inputting bank holidays directly into a shared team calendar and giving staff the option to book time off work in a simple and accessible way.

With the BrightHR staff holiday planner you will be able to:

• See who has time off and when

• Identify which staff members have holiday balance remaining

• Approve or deny holiday requests digitally from desktop or mobile

• Stay updated on holiday entitlement laws

To discover our HR software and its many features book a free demo today.