Do You Get Paid for Bank Holidays? A UK Employer’s Guide to Compliance

On 1st April 2024, a business owner in Birmingham discovered that a small oversight in their part-time contracts had led to a potential £1,200 liability in back-dated holiday pay. It’s a common source of anxiety for many UK directors who worry that their current payroll setup might be inadvertently discriminatory or unnecessarily expensive. You likely feel that managing staff leave should be straightforward, yet the question “do you get paid for bank holidays” often leads to a maze of complex legal terminology and conflicting advice. We understand that you want to do right by your team while protecting your business from the risk of an expensive employment tribunal.

In this guide, we’ll provide the clarity you need to master your legal obligations regarding bank holiday pay and contractual wording. You’ll gain a bespoke understanding of the differences between statutory and contractual rights, ensuring your holiday policies remain fully compliant and strategically sound. We’ll walk you through the essential steps to manage staff leave accurately, giving you the peace of mind that your payroll is both fair and legally robust.

Do You Get Paid for Bank Holidays? Understanding the Legal Baseline

A common misconception among both staff and business owners is that there is an automatic legal right to time off with pay on bank holidays. In reality, the answer to the question “do you get paid for bank holidays?” depends entirely on the specific terms set out in your staff’s employment contracts. There is no statutory requirement for employers to grant paid leave on these days. You also aren’t legally obliged to pay a premium rate, such as “time and a half,” unless you have specifically agreed to do so in writing.

We often see businesses face internal friction because their documentation is vague. From our perspective as an expert partner, clear HR policies and contracts are the most effective way to prevent future disputes and maintain a positive culture. While people often use the terms “public holidays” and “bank holidays” interchangeably, they have different historical origins. You can find a detailed breakdown of public holidays in the United Kingdom which explains how these dates vary across England, Wales, Scotland, and Northern Ireland. Regardless of the label, your primary obligation is to ensure your approach aligns with the Working Time Regulations 1998.

The 5.6-Week Statutory Minimum

The vast majority of the 33 million people in the UK workforce are entitled to a minimum of 5.6 weeks of paid annual leave. For a standard employee working a 5-day week, this equates to 28 days. You have the discretion to include the 8 standard bank holidays as part of this 28-day entitlement. If your contract offers 20 days plus bank holidays, you are meeting the legal floor. Any leave granted beyond this 28-day threshold is classified as contractual leave, giving you more flexibility in how it is managed.

When Extra Bank Holidays Occur

One-off events, such as the Coronation of King Charles III on 8 May 2023, often catch employers off guard. Whether your team is entitled to pay for these extra days depends on your contract wording. If a contract states “20 days plus 8 bank holidays,” there is no legal requirement to pay for a 9th day. However, if it says “20 days plus bank holidays,” you might be contractually bound to provide the extra day. We recommend a consistent, fair approach to handle these exceptions to maintain high levels of engagement and avoid potential grievance procedures later on.

Contractual Wording: The Difference Between “Inclusive” and “In addition”

Your business’s first line of defence against expensive legal disputes is the specific phrasing found within your HR policies and contracts. Precision here isn’t just about semantics; it’s a financial strategy. When business owners ask “do you get paid for bank holidays”, the answer usually depends on whether the contract specifies a total leave figure or a split one. Ambiguity in these documents often leads to breach of contract claims, which can cost an SME upwards of £5,000 in legal fees before even reaching a tribunal. Clear, bespoke wording ensures both parties understand their obligations from day one.

Inclusive of Bank Holidays

This phrasing means the 28-day statutory minimum includes any bank holidays the employee takes. For a budget-conscious SME with 15 employees, this approach keeps holiday liabilities predictable. You’re effectively capping the paid time off at the legal floor. However, if your business closes on these days, you must ensure staff are actually allowed to take the time off as part of that 28-day pot. According to official UK government guidance, every worker is entitled to this minimum, regardless of whether you label the days as “bank holidays” or “annual leave.”

In Addition to Bank and Public Holidays

Choosing “plus bank holidays” means staff receive their base entitlement, usually 28 days, followed by the 8 standard bank holidays. This brings the total to 36 days. While more expensive, it’s a potent tool for recruitment. Data from 2023 recruitment trends suggests that 40% of candidates value enhanced leave over a 2% salary bump. You must be careful with your wording here. If you simply say “plus bank holidays” without specifying “the eight standard days,” you might be forced to pay for “extra” bank holidays, such as the one-off days granted for the 2023 Coronation or the 2022 Platinum Jubilee.

To provide peace of mind and limit your liability, a “safe” clause for a standard UK contract might look like this:

Getting this right from the start prevents the “accidental” extra week of leave that can disrupt your summer productivity. If you’re unsure if your current documents protect your bottom line, our team can provide a bespoke contract review to ensure your wording is watertight. Using clear language ensures that when staff ask “do you get paid for bank holidays”, your managers can give a confident, compliant answer.

Calculating Bank Holiday Pay for Part-Time and Irregular Staff

Managing holiday pay for part-time staff is the most common query our consultants receive. It’s a significant administrative hurdle that requires precision to ensure every member of your team is treated fairly. Under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000, you must ensure part-time employees receive the same pro-rata benefits as their full-time counterparts. This prevents legal friction and maintains a culture of equity within your business.

The Pro-Rata Entitlement Rule

Most workers in the UK are entitled to 5.6 weeks of statutory annual leave. For a full-time employee working five days a week, this equates to 28 days. To calculate the entitlement for a part-time staff member, we multiply the full-time equivalent by the fraction of the week they work. If an employee works 22.5 hours a week compared to a 37.5-hour full-time contract, they are entitled to 60% of the leave, or 16.8 days. We then deduct any bank holidays that fall on their scheduled working days from this total or provide time in lieu if they are required to work.

Avoiding Indirect Discrimination

A common pitfall occurs when employers only grant paid leave for bank holidays that fall on an employee’s usual working day. Because six of the eight annual bank holidays in England and Wales typically fall on a Monday, staff who work Tuesday to Thursday could miss out on significant rest time. This creates a risk of indirect discrimination. A bespoke absence management strategy ensures that even if a bank holiday falls on a day a worker doesn’t usually work, they still receive a pro-rata credit to their holiday balance.

Consider a staff member working three days a week. Even if they never work a Monday, they are still entitled to 3/5ths of the bank holiday allowance. This keeps your business compliant and your team engaged. For those managing irregular hours or “zero-hours” staff, new rules introduced for holiday years starting on or after 1 April 2024 allow for a 12.07% accrual method. This change simplifies the question: do you get paid for bank holidays? For these workers, the pay is effectively rolled into their total accrued leave based on the actual hours they work each pay period. We recommend updating your contracts to reflect these 2024/2025 legislative shifts to maintain total compliance.

Managing Business Closures and Mandatory Bank Holiday Leave

Employers often face the question, “do you get paid for bank holidays” when the physical workplace is scheduled to close. Under the Working Time Regulations 1998, you possess the legal right to dictate when your staff take their annual leave. This authority allows you to mandate that employees use their holiday entitlement for specific dates, such as the eight standard bank holidays or a full Christmas shutdown. By taking a strategic approach to these closures, we help you ensure operational consistency while fulfilling your statutory obligations to provide rest.

Giving Proper Notice

To legally require staff to take a bank holiday off, you must follow the “double notice” rule. This means providing notice that is at least twice as long as the period of leave you’re enforcing. For a single Monday bank holiday, you’d need to give at least two days’ notice. We recommend outlining these requirements clearly within a bespoke employee handbook to avoid any last-minute friction or confusion. Since the 5.6-week statutory entitlement typically includes these days, early communication ensures your team can plan their personal lives around your business needs, which maintains high levels of engagement and morale.

Working on a Bank Holiday

There’s a persistent myth that staff are entitled to “time and a half” or “double pay” for working on a public holiday. Legally, there’s no requirement to pay any premium rate unless it’s explicitly stated in the employment contract. If your business remains open and a staff member refuses to work their contracted shift, you may need to initiate disciplinary procedures for unauthorised absence. Handling these situations requires a balanced touch; you must protect the business while supporting your people. Clear, well-drafted contracts are your best defence against these disputes, ensuring everyone understands their responsibilities from day one.

We see many business owners struggle with the nuances of holiday pay and mandatory leave. Taking the time to audit your current agreements can prevent a costly employment tribunal claim further down the line. Our team acts as a safe pair of hands, helping you navigate these compliance hurdles with confidence.

Mitigating Risk: How Outsourced HR Protects Your Business

Getting holiday pay wrong isn’t just a minor administrative slip. It’s a significant risk that can lead to costly employment tribunals. In 2023, the average award for unfair dismissal in the UK reached £11,914, but the hidden costs of legal fees and management time often double that figure. When staff ask “do you get paid for bank holidays”, an incorrect answer or a flawed contract clause can trigger formal grievances that erode trust. We’ve seen businesses face substantial back-pay claims because they failed to calculate pro-rata entitlements for part-time staff correctly over several years.

A professional HR audit identifies these non-compliant clauses before they escalate. By partnering with experts, you ensure your payroll processes align with the latest UK legislation. This proactive approach doesn’t just protect your bank balance; it builds a positive workplace culture. Employees who feel their entitlements are managed fairly and transparently are 15% more likely to stay with their employer, reducing your recruitment costs in the long run. Just as precision matters with holiday calculations, the same attention to detail is crucial when managing other statutory payments like maternity pay, where a single error can trigger costly HMRC audits. With the upcoming changes to employers national insurance contributions set to increase payroll costs significantly from April 2026, ensuring your holiday pay calculations are accurate becomes even more critical to maintaining budget control. The new statutory sick pay 2025 rules will also add complexity to your payroll management, making professional oversight essential for compliance. Choosing fractional outsourced HR services provides the strategic oversight you need to stay compliant without the overhead of a full-time department.

Why “Bespoke” Matters in Employment Law

Generic contract templates from the internet often fail to protect UK employers. These “off-the-shelf” documents frequently miss the nuances of the 12.07% holiday accrual rules or the specific wording required to offset bank holidays against statutory minimums. We act as a safe pair of hands for SMEs, providing tailored documentation that reflects your specific industry and working patterns. Whether you’re managing complex pro-rata calculations or shifting holiday years, bespoke advice ensures your business stays on the right side of the law. We simplify the question of “do you get paid for bank holidays” by creating clear, legally sound policies that leave no room for ambiguity.

Next Steps for Employers

Taking action now prevents the stress of a future legal challenge. We recommend prioritising these three steps to ensure your business is fully compliant:

• Review current contracts: Check the specific wording regarding bank holiday entitlements to ensure it meets current legal standards.
• Audit part-time balances: Verify that your part-time staff are receiving a fair pro-rata share of all public holidays to avoid discrimination claims.
• Request a compliance check: Contact the Altum HR team today for a thorough review of your holiday policies to gain total peace of mind.

Effective HR management is about protecting your business by supporting your people. Don’t let a simple calculation error turn into a tribunal claim. Reach out to us to ensure your holiday pay processes are robust, fair, and fully compliant.

Secure Your Compliance and Protect Your People

Navigating holiday entitlement doesn’t have to be a source of stress for your leadership team. Under the Working Time Regulations 1998, most UK workers are entitled to a statutory minimum of 28 days of paid leave, but the specific answer to do you get paid for bank holidays depends entirely on the wording within your employment contracts. Whether you use “inclusive of” or “in addition to” phrasing, precision is your best defence against potential grievances. You must also ensure part-time staff receive a fair pro-rata entitlement to remain compliant with the Part-time Workers Regulations 2000.

We help UK SMEs move beyond guesswork by providing bespoke contract drafting that secures your legal position while supporting your team’s well-being. Our “Expert Partner” approach means you get tailored employment law advice that fits your unique culture. You can stop worrying about administrative hurdles and focus on growing your organisation with confidence.

Protect your business with expert HR support from Altum HR

We’re here to help you build a stronger, more resilient workplace today.

Frequently Asked Questions

Is it a legal requirement to pay double time on bank holidays?

No, you aren’t legally required to pay double time or any premium rate for bank holidays in the UK. Any enhanced pay is entirely at your discretion as an employer and must be specified in the written employment contract. If your contracts don’t mention a higher rate, staff are only entitled to their standard pay. We recommend reviewing your terms to ensure they align with your specific business needs and budget.

Can I force my employees to work on a bank holiday?

You can require employees to work on bank holidays if their employment contract identifies these as normal working days. This is standard practice in sectors like retail or hospitality where trade peaks during public holidays. You must still ensure every worker receives their full 5.6 weeks of statutory annual leave. For a full-time employee, this equates to at least 28 days of holiday across the leave year.

What happens if a bank holiday falls on an employee’s day off?

Employees don’t have a statutory right to an extra day off in lieu if a bank holiday falls on a Saturday or a day they don’t usually work. This right only exists if your specific employment contract grants it. However, to maintain a fair culture and avoid indirect discrimination against part-time staff, we advise providing a pro-rata allowance. This ensures every team member receives a fair share of the 8 annual public holidays.

Do part-time workers get bank holidays?

Part-time workers are entitled to the same pro-rata holiday benefits as their full-time colleagues, including bank holidays. If a full-time member of staff receives 8 bank holidays, a worker on a 50% contract must receive 4 days of entitlement. This applies even if the bank holiday falls on a day they don’t work. This ensures you stay compliant with the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000.

Can an employer deduct bank holidays from my 28 days?

Yes, you can legally include the 8 UK bank holidays as part of an employee’s 5.6 weeks of statutory annual leave. For most full-time staff, this means they have 20 days of bookable leave and 8 fixed bank holidays to meet the 28-day minimum. When considering do you get paid for bank holidays, remember that these days are simply a portion of their total paid leave entitlement under current UK law.

What if an employee is on sick leave during a bank holiday?

If an employee is genuinely ill on a bank holiday they were meant to work, they can often claim that day back as holiday and receive Statutory Sick Pay (SSP) instead. SSP is currently set at £116.75 per week as of April 2024. The employee must follow your standard sickness reporting procedures to qualify. Because this is a nuanced area of compliance, we suggest seeking bespoke HR advice to handle specific cases.

Do zero-hours contract workers get bank holiday pay?

Workers on zero-hours contracts are entitled to statutory holiday pay for every hour they complete. Under the April 2024 rules, this is calculated at 12.07% of the total hours worked. If they work on a bank holiday, they receive their usual hourly rate unless their contract offers a premium. This calculation ensures that even irregular workers receive the correct do you get paid for bank holidays benefit proportional to their actual work output.

Article by

Josephine Broadstock

Josephine Broadstock is the Founder of Altum HR and a recognised thought leader in HR strategy and operational delivery. With a career grounded in employment law and hands-on business support, Josie has built a reputation for helping organisations move beyond transactional HR into truly strategic, commercially aligned people management.

At the core of Josie’s approach is a belief that HR should not sit in isolation—it should actively drive business performance. She works closely with business owners and leadership teams to understand how their organisations function in practice, not just on paper, enabling the design and implementation of people strategies that are both legally robust and operationally effective.

Josie specialises in translating complex employment law and HR challenges into clear, practical solutions that support growth, reduce risk, and improve organisational efficiency. Her work often focuses on bridging the gap between policy and execution—ensuring that processes are not only compliant but also embedded into day-to-day operations in a way that adds measurable value.

Through Altum HR, Josephine leads a team of highly qualified consultants who share her commitment to quality, personalisation, and commercial impact. She is particularly passionate about raising standards within the HR industry, advocating for a more consultative, expert-led approach that prioritises long-term business outcomes over quick fixes.

As an author, Josie shares insights on employment law developments, operational best practice, and real-world HR challenges, offering business leaders practical guidance they can apply immediately. Her content is designed to cut through complexity and provide clarity in an ever-evolving workplace landscape.