What does the Royal Wedding Bank Holiday mean for the South's employers?

Businesses in the South will be gearing up for an extra bank holiday this month with the Royal Wedding taking place on 29 April.

The CBI estimates that the extra day will cost the British economy around £5 billion pounds; with many businesses also having the difficult task of deciding whether employees should receive this day as an additional holiday on top of their current leave.

“Whilst this is not an automatic entitlement, for employers to maintain good employee relations, they should carefully consider the options open to them and particularly how any decision will affect employee morale,” said Moore Blatch employment expert Katherine Maxwell.

For many employers though the issue does not just rest around the Royal Wedding bank holiday.  By allowing the additional day as holiday, many employers are concerned that they will only be operational for three days between April 22 and May 2, because the May Day bank holiday is the following Monday.

“Considered in this light the additional day can have a significant impact on certain companies, particularly smaller businesses that are reliant on key staff,” continues Katherine.

At present there are annually eight permanent bank holidays in the UK and employees do not have an automatic right to paid leave on these days.

Most employers however choose to close down on these days and where employees do work; they are often paid extra or offered time off in lieu – which will normally be stipulated in their contract.

The first step for employers is to consider the terms of any employment contracts they have in place, as this can influence the options available to them.

A contract which stipulates a specific number of days holiday and then also entitles the employee to bank holidays will generally entitle an employee to receive the Royal Wedding bank holiday as a day off as well.

Where a contract only refers to the number of day’s annual leave and makes no mention of bank holidays, there is generally no automatic right of leave for the Royal Wedding.

“In larger organisations employers may have in place different wording in contracts, depending on the employee’s role and duties.

“In these circumstances, it will be essential for employers to maintain dialogue with employees and despite contract terms, they may decide to allow all employees the time off as a gesture of goodwill.

“Either way, employers need to make sure that they communicate clearly and effectively to all staff, ensuring a consistent approach,” advises Katherine.