With the summer bank holidays approaching, employers have a timely opportunity to review how public holidays are managed across their workforce. While bank holidays are a familiar fixture in the working calendar, misunderstandings around entitlement, pay, and fairness remain common sources of employee dissatisfaction.
Contractual provisions
The starting point is contractual clarity. There is no automatic legal right to time off on a bank holiday. Entitlement depends on what the employment contract says. Some contracts provide a set number of days’ annual leave plus bank holidays; others include bank holidays within the statutory minimum. Employers should ensure this is clearly stated and consistently applied to avoid confusion or grievances.
Fair treatment
Fair treatment is particularly important for part time and irregular hours workers. Part timers should not be disadvantaged simply because they do not normally work on a Monday. A pro rated annual leave entitlement, rather than allocating specific days, is often the simplest and fairest solution. For casual or variable hours staff, employers should ensure that holiday pay for bank holidays is calculated using the correct reference period, reflecting average earnings rather than basic pay alone.
Working a bank holiday
Operational needs may also require some employees to work bank holidays. Where this is the case, employers should check whether enhanced pay, time off in lieu, or alternative arrangements apply, and confirm expectations well in advance.
Agricultural workers
Agricultural workers in Wales and also those in England who continue to benefit from enhanced rights under the AWO 2012 must be paid at the overtime rate for hours worked on a bank holiday.
If a bank holiday falls on a day the worker normally works, and they are not required to work, it will count as a day of annual leave and should be deducted from their annual leave entitlement for the year.
Communication
Finally, communication matters. Clear notice and transparent rota planning help reduce resentment and support engagement. Reminding staff how bank holidays are treated, how to request leave around popular periods, and any blackout dates or minimum staffing requirements can prevent last minute issues.
Handled well, bank holidays can boost morale rather than disrupt operations. A simple review now can help employers balance legal compliance, business needs, and employee wellbeing as the summer approaches.
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