The Government has issued advice to employers on how to calculate annual leave for employees in light of the increase in statutory holiday entitlement to be introduced from 1 October this year.

As mentioned in last month's E-bulletin, the amount of holiday to which workers are entitled under the Working Time Regulations 1998 is due to increase from four weeks to 4.8 weeks from 1 October 2007 and then to 5.6 weeks from 1 April 2009. For workers whose holiday year does not start on 1 October, their holiday entitlement in the holiday year which includes 1 October 2007 will increase by a proportion of the total increase.

In order to make it easier for employers to calculate a worker's holiday entitlement in the years in which the changes take effect, the Government has published a ‘holiday ready reckoner’, which will be shortly be followed by an online holiday calculator. The link to the calculator is below.