Altum HR Insights

An Employer’s Guide to Bank Holiday Entitlement

Apr 21, 2026 | HR Insights

May brings sunshine, lighter evenings and for many businesses, a run of bank holidays that can cause more confusion than calm. Between part‑time patterns, contractual wording and one‑off national events, employers often find themselves unsure about what staff are actually entitled to.

Here’s a clear, no‑nonsense guide to help you prepare before the long weekends begin.

1. Bank holidays aren’t an automatic right

There’s no statutory right to take bank holidays off. The legal minimum is 5.6 weeks of annual leave, and it’s entirely up to you whether bank holidays are included within that allowance or offered on top.

The key is clarity. Your employment contracts should spell out:

  • Whether bank holidays are included in the annual leave allowance
  • Whether they’re additional to the allowance
  • Whether the business closes on bank holidays or remains open

Any vagueness tends to work against employers, so tightening up your wording now can prevent disputes later.

2. Part‑time employees must be treated fairly

This is where many employers unintentionally slip up. Part‑time staff must receive pro‑rata holiday entitlement, including the bank holiday element.

Why it matters: If a part‑timer doesn’t work Mondays – the day most bank holidays fall on – they could miss out entirely unless you provide a pro‑rata allowance. Without this, you risk creating less favourable treatment, which is unlawful.

A simple rule of thumb: Everyone gets the same proportion of bank holiday entitlement, regardless of their working pattern.

3. When you need staff to work on a bank holiday

Many sectors can’t simply shut down because the calendar says so. If your business operates on bank holidays, you can:

  • Require staff to work (if the contract allows)
  • Provide the holiday day for them to use elsewhere in the year
  • Offer enhanced pay (optional, not a legal requirement)

The important part is consistency. Whatever approach you take should be applied fairly across your workforce.

4. Communication is everything

Most bank‑holiday‑related issues arise not from the law, but from assumptions. A quick pre‑May reminder to staff can prevent:

  • Last‑minute holiday requests
  • Misunderstandings about entitlement
  • Frustration around rota planning
  • Confusion for new starters

A simple internal update outlining how your business handles bank holidays can save a lot of admin headaches.

5. Keep your policies and contracts aligned

Your holiday policy, employment contracts and actual practice should all match. If they don’t, employees will rely on whichever version benefits them most.

Before May hits, it’s worth checking:

  • Do your contracts clearly define bank holiday entitlement?
  • Does your holiday policy reflect the same rules?
  • Are managers applying the rules consistently?

If not, now is the time to tidy things up.

6. While we’re on the topic of holidays… make sure your record‑keeping is up to scratch

Bank holidays are a good reminder of how important accurate leave tracking really is, and this matters even more now that the new rules have come into effect. As of 6th April 2026, employers must keep detailed records of annual leave and holiday pay for at least six years.

This includes:

  • How much leave each employee has accrued
  • What leave has been taken (including bank holidays)
  • How holiday pay was calculated
  • Any TOIL taken or owed

If bank holidays already highlight gaps in your processes – last‑minute requests, unclear balances, inconsistent TOIL tracking – now’s the time to tighten things up. With the new record‑keeping duty already live, having a reliable system in place isn’t just helpful, it’s essential.

 

Final thoughts

Bank holidays feel straightforward, but the rules behind them aren’t. With a little preparation – and clear, consistent documentation – you can avoid the annual confusion and keep your team informed and supported.

If you’d like help reviewing your contracts, updating your holiday policy or setting up a system that tracks leave accurately, our team is here to support you.

 

Call now for instant HR advice on 0800 048 5764 or WhatsApp 07432 275612.

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