Q: Are employees who work on a bank holiday entitled to pay in lieu or additional holidays?

A: This depends on the overall holiday entitlement and the terms of their contract. If the entitlement is limited to the statutory minimum and employees work on a bank holiday, they must have a day off in lieu so that the total paid leave is 28 days per year (if they work a five-day week).

Employees cannot be paid in lieu of statutory minimum holiday entitlement except on the termination of employment. Where the contractual holiday entitlement exceeds the statutory minimum, the right will depend on the terms of the employment contract, or any custom and practice in the business.