Work - WAH Business Archive 06-07

Increased holiday proving a headache for SME owners

02 Apr 2007

Increased holiday proving a headache for SME owners

Small business owners are finding the amended regulations on employee holiday entitlement confusing, workplace consultant Croner has warned.

The forthcoming increase in entitlement from 20 to 28 days, while welcomed by employees and unions, is proving a headache for many managers trying to get to grips with the small print, it said.

The timing of the change is proving to be a particular headache with many employers. In a survey, Croner found that 70% wanted the extension to happen in one main change, rather than the phased way it has been planned.

The transition period is due to begin on 1 October this year when entitlement will increase from four weeks to 4.8 weeks, or 28 days instead of 20. On 1 October 2008 it will increase to over five and a half weeks.

"Unless the organisation's holiday year happens to commence on 1 October, or they wish to implement the changes sooner, they will have to work out the new entitlement for a proportion of the year," said Gillian Dowling, technical consultant at Croner.

"We pointed out that most employers' holiday leave years start in either January or April and that to commence the increase in October would result in a greater administrative burden for employers. The DTI however, said that the increase should be carried out in October as that is the start of the current default year in the working time regulations."

"Although their intentions are good, the government have yet again burdened employers with unnecessary complicated calculations."

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