Easter bank holidays: What’s the issue for HR?

While the changing dates isn’t usually an issue for most people, it can be for an employer who runs a leave year from April to March.

You see here’s the thing. Depending on when Easter falls, your employees may end up having two lots of Easter holidays in one leave year. And then none in the next…

This inconsistency can end up creating issues for your employee’s bank holiday entitlement and be a bit of an HR nightmare. So how do we resolve it?

First of all, what’s the issue for April to March leave years?

Okay, let’s say your leave year runs from 1st April to 31st March.

If Easter falls in March one year and in April the next, technically your employees could end up having no Easter holidays within that leave year at all.

And if Easter falls in April one year and March the next, your employees could actually take two lots of Easter bank holidays in that same year.

So what’s the problem with that?

The problem with having two Easters in one year and none the next means that you can end up either giving “too many” or “not enough” bank holidays to your staff.

In a year where employees have two Easter bank holidays, they could end up having 10 bank holidays in the same year and only have six in the next.

We tend to refer to this as having a “fat” year (a year with two Easters) or a “lean” year (a year with no Easter).

Whether or not this actually matters for you depends on:

A. Whether your employee receives their legal minimum holiday entitlement

While you don’t have a legal obligation to give your staff bank holidays off work, you do have to make sure they have at least 5.6 weeks of paid annual leave. This equates to 28 days for a full-time employee who works five days a week every year (or the pro-rata equivalent if they work part-time or irregular hours).

If your leave year runs from April to March, you might have a problem achieving this in a “lean” year.

For example last year, Good Friday fell on 29th March, with Easter Monday falling on 1st April 2024. So if your new leave year started on 1st April 2024, your employees missed out on one bank holiday.

That means if your employee only took 27 days of leave from April 2024 to March 2025, they’d be a day short of their legal minimum entitlement and it’s your duty to make sure they receive that time back to meet the requirement.

Likewise, in a year where there are two Easters, this could mean your employees take more time off work than planned – which could create issues for you if you end up being short-staffed.

B. The wording in your staff contracts

Wording matters.

No one has a legal right to take bank holidays off work. It all depends on what’s written in their contract.

So typically, a full-time employee’s annual leave is made up of 20 days holiday and the eight statutory bank holidays (Christmas, Easter etc). It doesn’t have to be set out this way, but it often is.

Your employee’s contract might say something along the lines of the following. They’re entitled to “all bank holidays” or “20 days plus bank holidays” or “28 days, including bank holidays”. If you see wording like this, then you would have a contractual obligation to give your employee any and all bank holidays in a year.

That includes any extra bank holidays that pop up (like with the King’s Coronation in 2024).

So even if there are two sets of Easter holidays in a year, not giving your employee the time off for both could actually be a breach of contract.

However, the opposite is the case if your employee’s contract says they’re entitled to “20 days holiday, plus eight bank holidays” for example. If the contract specifies a certain amount of days your employee is entitled to, then you wouldn’t technically have to allow the extra Easter holiday if it takes them over that limit.

That’s because a certain amount of bank holidays, so your employee wouldn’t be entitled to any extra.

What happens if your employee has taken fewer days than the statutory minimum in a year?

As an employer, you have an obligation to make sure your staff have at least 5.6 weeks or the pro-rata equivalent. This is a non-negotiable.

Your employee doesn’t have to use all their leave before the year’s up (although you should always advise they do) but this is what they’re legally entitled to. You may have an agreement where your employee can carry over a certain amount of leave into the next leave year if they wish.

If you give your employee fewer days off work than they’re entitled to in a year, they could raise a claim against you. So you would need to give them that day back.

I can’t have my employees taking two lots of Easter bank holidays. What should I do?

You can include a clause in your contract that says your employee’s annual leave is “subject to a maximum of 28 days”. This cap means you don’t have to provide any additional time off.

Alternatively, you could include a flexibility clause in your contracts. This tells your employees they’re entitled to specific bank holidays or alternative days decided by you.

This gives you the option to designate an alternative two days of leave to avoid giving them two Easters off work in one year. You can enforce that an employee take leave as long as you provide notice.

Can you pay your employee instead of giving them more time off?

You cannot pay someone in lieu of their statutory minimum holiday allowance unless their employment is ending. Your employee has to be able to take their full 5.6 weeks of paid leave (or pro-rata equivalent) in a year and be paid during that period of leave.

Can you take days off the “fat” year and give them to staff in a “lean” year?

You could also agree to consult your staff when a year pops up like this. So you may agree for your employees to carry leave over from the fat year and apply it to the lean year instead.

Your employees would have to agree to this though. If they don’t and your employee’s contract says they’re entitled to all bank holidays, you would have to give them the extra holidays.

How can I update my contracts to support my needs?

Because wording is so important, you need to make sure you get it right.

And with another Easter bank holiday coming up, do you have your documentation all in order?

If you need HR support updating your staff contracts, you can book in for a free consultation with a Peninsula expert. They’ll be able to determine your next steps and make sure you have legally watertight contracts that suit your bespoke needs.

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