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How sickness falling on a bank holiday is dealt with depends on whether bank holidays are included within statutory holiday entitlement or are in addition to the statutory entitlement.
Bank holidays included in statutory entitlement
If bank holidays are included in the 5.6 weeks statutory annual leave (28 days for a full time employee), then provided they have followed the correct notification and certification procedures, they are entitled to take an alternative day off at another time.
Bank holidays are in addition to statutory entitlement
If bank holidays are given in addition to statutory entitlement, granting time off in lieu is not necessary.
Example - for a full time employee, if entitlement is 25 days annual leave plus 8 bank holidays, then if a member of staff is off for all of the bank holidays within a leave year, then they will not be entitled to an alternative day in lieu for 5 of those bank holidays.
Bank holiday entitlement for part-time workers
This will be entitlement is pro rata according to the days/hours they work.
Additional pay for working on bank holidays
you do not need to pay staff more for working on bank holidays unless there are specific agreements or details in the contract which allow for enhanced pay rates.
Business closure on bank holidays
If the business is closed on bank holidays, you can specify that staff take these days as part of the statutory holiday entitlement. All other holiday requests should be dealt with in accordance with your normal procedure for approval.