Do Employees Have to Get Bank Holidays Off?
A common question from employers is whether staff are automatically entitled to time off on bank holidays.
The short answer: no, they’re not.
There’s no automatic legal right for employees to have bank holidays off work – or to be paid extra for working them. Everything comes down to what’s written in the employment contract.
What Does UK Law Say?
Under the Working Time Regulations 1998, employees are entitled to 5.6 weeks’ paid annual leave per year.
For a full-time employee working five days a week, that’s:
28 days’ holiday per year
However, the law doesn’t treat bank holidays separately. Employers can choose to:
- Include bank holidays within the 28-day entitlement
- Offer bank holidays on top of the 28 days
Both options are completely lawful.
How This Works in Practice
Two employees can receive the same legal entitlement but have very different arrangements.
Example 1: Bank holidays included
An employee has 28 days’ holiday including bank holidays.
- They’ll typically have around 20 days to book freely
- They may be required to work on bank holidays
- No extra pay is required unless stated in the contract
Example 2: Bank holidays on top
An employee has 25 days’ holiday + 8 bank holidays.
- Bank holidays are additional, guaranteed days off
- The employer can’t require them to work those days unless agreed
- Total entitlement = 33 days
Make It Clear in Your Contracts
To avoid disputes, your contracts should clearly state how bank holidays are handled.
Common approaches include:
- “28 days including bank holidays”
- “20 days plus bank holidays”
- Enhanced leave (e.g. additional days for long service)
A lack of clarity here is one of the most common causes of employee grievances.
Do You Have to Pay Extra for Bank Holidays?
There’s no legal requirement to pay employees more for working a bank holiday.
If the contract doesn’t mention enhanced pay, you only need to pay the normal rate.
That said, many employers choose to offer incentives such as:
- Time and a half
- Double pay
- A day off in lieu
- A combination of pay and time off
If you do offer enhanced terms, make sure they’re applied consistently across your workforce to avoid discrimination risks.
Bank Holiday Entitlement by Worker Type
Full-time employees
- 28 days minimum (5.6 weeks)
- Bank holidays may be included or additional
Part-time employees
- Entitlement is pro rata
- Must not be treated less favourably than full-time staff
- Should still receive a fair allowance for bank holidays
Zero-hours / irregular workers
- Holiday accrues based on hours worked
- Typically calculated at 12.07% of hours worked (from April 2024 leave years)
Agency workers
- After 12 weeks, entitled to the same basic conditions as comparable employees
Common Mistakes Employers Make
Even experienced employers can get caught out with bank holiday rules. Here are some of the big ones:
1. Not updating contracts
If you change your policy, it must be reflected in writing. Verbal agreements won’t protect you.
Also be careful with wording like “8 bank holidays” — this can cause issues in years where extra bank holidays are announced.
2. Overlooking holiday during family leave
Employees on maternity, paternity, or adoption leave continue to accrue full holiday, including bank holidays.
Failing to account for this properly can lead to claims, including discrimination risks.
3. No clear “day in lieu” policy
If employees work a bank holiday, your policy should clearly set out:
- When leave in lieu must be taken
- How it’s booked
- Who approves it
4. Miscalculating irregular hours
Holiday entitlement and holiday pay are not the same.
- Entitlement = accrual (e.g. 12.07%)
- Pay = based on average earnings over 52 weeks
Mixing these up is a common payroll error.
What If a Bank Holiday Falls on a Non-Working Day?
For part-time employees, this often causes confusion.
Best practice is to either:
- Include bank holidays within total entitlement, or
- Offer time off in lieu
The key is ensuring part-time staff are treated fairly and consistently.
Can Employers Refuse Bank Holidays Off?
Yes — as long as the contract allows it.
However, if the contract states that bank holidays are provided as leave, refusing time off could be a breach of contract.
Final Thoughts
Bank holidays aren’t as straightforward as many employers assume. The key points to remember are:
- There’s no automatic right to bank holidays off
- Everything depends on the employment contract
- Clarity and consistency are essential
Getting this right not only keeps you compliant — it also helps avoid unnecessary disputes and improves employee trust. We can provide simple software to help you manage all your holiday calculations with ease.
To avoid confusion, disputes, and potential compliance risks, it’s essential to get your bank holiday policies and contracts right from the outset. That’s where Tower HR can help. We work with SMEs to ensure contracts are clear, legally compliant, and aligned with how your business actually operates. Whether you need a full review of your documentation or ongoing HR support, our retained services give you peace of mind with expert advice whenever you need it. If you’d like to take the hassle out of managing employee entitlements, get in touch with Tower HR today.