Statutory Leave and ERA 1996

If an employer offers 20 days of annual leave plus bank holidays, there can be a shortfall in statutory leave entitlement under the Employment Rights Act 1996 (ERA) and Working Time Regulations 1998 (WTR).

Statutory Leave Entitlement (UK)

Under the Working Time Regulations, all workers are entitled to:

• 5.6 weeks of paid annual leave per leave year.

• For a full-time employee (working 5 days a week), this equals:

  5.6 weeks × 5 days = 28 days

This is the minimum statutory entitlement and can include bank holidays.

“20 Days Plus Bank Holidays” – Is That Enough?

Let’s break it down:

• 20 days holiday

• Plus 8 bank holidays (England & Wales standard)

  = Total: 28 days

At face value, this meets the 5.6-week requirement.

So Where’s the Shortfall?

It depends on how the holidays are offered and worded in the employment contract:

Scenario

Employer says: “20 days plus the standard 8 bank holidays”

✅ Meets statutory requirement (if all bank holidays are taken as leave)

Employer says: “20 days including bank holidays”

❌ Shortfall of up to 8 days

Fewer than 8 bank holidays occur in a year or aren’t guaranteed off

❌ May result in statutory non-compliance

Part-time workers get pro rata and bank holidays aren’t adjusted fairly

❌ Risk of unlawful treatment

ERA & Statutory Leave

Under the Employment Rights Act 1996, workers have the right to paid annual leave, but specific amounts and rules are given in the Working Time Regulations 1998, which implement the EU Working Time Directive in UK law.

Employer Best Practice

• Ensure contracts clearly state that 28 days are the minimum, whether they include bank holidays or not.

• Apply bank holidays fairly and pro-rata for part-time workers.

• If offering 20 days + bank holidays, monitor actual practice to ensure it delivers at least 28 days in all years (some years have fewer bank holidays due to calendar shifts).

Example Shortfall Scenario

If:

• An employee is entitled to 20 days including bank holidays

• But only takes 5 bank holidays off (e.g. if others fall on weekends or aren’t offered)

• Their actual total paid leave is:

  
  

  → 20 days total - 5 bank holidays = 15 days they can choose

  
  

  → Shortfall of 8 statutory days (28 - 20 = 8)

If you work in an industry where Mondays are not part of your normal working week, such as hairdressing, beauty, or hospitality, it’s important to check that your annual leave entitlement is compliant with UK law. Many bank holidays fall on Mondays, and if your contract includes “20 days plus bank holidays,” you could be missing out if those bank holidays fall on days you don’t usually work. To meet the legal minimum of 28 days’ paid holiday, your employer must either provide extra leave or substitute those bank holidays with alternative days. Make sure your leave entitlement reflects this to avoid a shortfall.