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Salon Staff's Holiday Entitlement
Posted by
Kate
Dated: May 28, 2008 2:48 PM
The legal requirement for staff to receive paid annual leave was only introduced in 1998. The minimum paid leave rose from 20 days to 24 days on 1 October 2007 and increases again on 1 April 2009 to 28 days.
This represents a 40% increase in under two years and a significant increase in salon running costs. It is worth remembering that initially paid leave was introduced under the European Working Time Directive to ensure staff took rest away from the workplace for health and safety reasons.
David Wright, who advises Habia and a and a range of salons on issues from contracts to sets of policies and salon handbooks, looks at some of the key questions surrounding this subject.
Do staff have a separate entitlement to paid holidays?
No, unless the employer gives them additional leave through the Contract of Employment.
The law simply specifies a minimum of 24 days a year paid leave. Of course, this is pro rata for part-time staff. Many salons open on bank holidays and require staff to work.
There is no prescribed additional pay for this. On the other hand, if your business is closed on a bank holiday and the employee was scheduled to work then they would be paid and use a day's leave.
I currently give my staff 22 days' leave plus Christmas Day and Boxing Day. Is there anything I need to do?
You are meeting the 24-day minimum, so not at the moment. If you have part-time staff that weren't scheduled to work on the two Christmas bank holidays, then you haven't paid them. Therefore, you may not be giving them sufficient holiday pro rata.
I would suggest that, in anticipation of the increase to 28 days in April 2009, you consult with the staff now and move to 28 days, including bank holidays, which will give you more flexibility.
This wording would still enable you to require staff to work on a bank holiday should you choose to open.
Are staff entitled to additional payment for working on a bank holiday?
As I indicated above, there is no legal requirement to pay any form of enhancement and this is entirely the employer's decision.
I currently give staff 20 days plus bank holidays, but they claim when the minimum rises to 28, they have to receive 28 days plus bank holidays. Are they right?
No. As long as staff receive 28 days after 1 April 2009 you meet your legal requirement.
I always recommend salons express leave as a number of days rather than separating out bank holidays.
For example, in the 2007/08 financial year Easter fell twice in the same year and therefore there were 10 bank holidays - there are only six this year. It is easy to see the source of potential for disputes.
Similarly, the government seems likely to award an additional bank holiday in November to commemorate our war dead. If your contract specifies 'plus bank holidays' then staff will be entitled to this one automatically as well.
I have five staff and I must now give them eight days' extra leave each. I will therefore lose eight weeks of their input, thus reducing the salon income. Can you offer any advice to minimise the impact?
Yes, you can begin to consult with staff regarding the additional leave. You may, through amending your contract or salon rules, look to fix a week's leave to coincide with your predicted quieter periods.
Many salons already require staff to take certain days' leave in, for example, February or specify that 'at least one week is taken between January and February'.
On the other hand you might want to restrict leave - for example, no leave can be taken in December.
Leave is taken by mutual agreement and while you need to keep your workforce happy, you equally may wish some leave to be taken when you have historical evidence that your salon will be quiet.
What do I do regarding part-time staff and the new leave entitlement? I find it baffling.
It can be difficult, particularly as the leave increased in October 2007 and will again in April 2009 - this may not reflect your salon's leave year. It is often the case that part-time staff work different hours on different days and I always recommend that their leave is calculated in hours.
Let me give you two examples:
- Assuming full-time staff receive 24 days' leave (including bank holidays) and you have a part-time employee working 20 hours a week the formula is 4.8 (weeks) multiplied by their hours, ie 20, giving an annual leave entitlement of 96 hours including bank holidays.
- If a bank holiday falls on a working day and you are closed you simply pay them their normal hours and deduct it from the 96. If there is a bank holiday on a day they were not scheduled to work then they are not paid and you do not deduct any leave. When the leave increases to 28 days in a full year, the employee would receive 5.6 (weeks) multiplied by 20 hours giving 112 hours per year.
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Comments (14)
Posted by andrew
Dated: December 5, 2008 6:14 PM
Hi i work Tues, wed, thurs, fri and saturdays. I have been told i am entitled to 28 days. When bank holidays come around as we are closed on mondays anyway my employer still takes the bank holiday out of my entitlement. It comes to xmas now and they are taking 5 days off me is there anyone i can contact because i believe this to be unfair.
Posted by Kate 
Dated: December 11, 2008 1:35 PM
Hi Andrew, I have put your question to David and he says that it depends whether you have 20 days holiday plus bank holidays or 28 days holiday. That information should be in your contract and then he will be able to let you know
Posted by Matt
Dated: January 5, 2009 12:19 AM
Hi, I started a new job in August, and my current employer say's that i am only entitled to 1 day per month for the first year. She said this is what the NHF have told her to be correct? I am confused?
Posted by Kate
Dated: January 6, 2009 4:08 PM
Hi Matt,
I put your question to David and his advice is that employees must legally get must get twenty four days in twelve months. On a pro rata basis that is two days per month.
Posted by Kate
Dated: January 6, 2009 4:10 PM
Hi Andrew, following on from your previous email, David says...
"You work a 5 day week and therefore are entitled to a minimum of 24 days holidays. This rises to 28 days on 1/4/09
"However, I note you are already in receipt of 28 days
"The salon practices does seem unusual. You cannot (unless you agree!!) be given a days holiday on a non working day. You do not indicate of you are paid for the Monday Bank Holiday when you are not scheduled to work.
"It would be illegal to requite you to take a days holidays and not pay you.
"I can see little advantage to the salon in paying you for a day when you would not work, except to utilize a day of your leave.
"In short – The European Working Time regulations allow paid leave to give you a 'rest' from work. The spirit of this is broken if your holidays are give on a non working day."
Posted by Tamara
Dated: January 7, 2009 1:43 PM
I own a hair & beauty salon employing 10 staff. The impact of the upcoming statutory minimum holiday increase from 24 to 28 days will be significant to me in their pay and my loss of generated income - especially in this current economic climate. I can't believe that small businesses are still going to be expected to see this through even though many of us are suffering badly in the decline.
Am I the only employer thinking this is madness or are there others... and if so is there any movement out there proposing that there be a delay on implementing this policy until we reach a more prosperous time?
Does anyone out there realise that this holiday entitlement increase will cripple businesses... surely people would rather stick to 24 days and keep their jobs?
Posted by Kate
Dated: January 13, 2009 11:50 AM
Hi Tamara,
Just wanted to let you know that I am going to add your comment to the My HJi forum as I think it is a really interesting point that you make. You'll be able to follow any replies on the forums at www.hji.co.uk/myhji
Posted by Lesley
Dated: January 16, 2009 8:20 AM
I have bought a salon recently with a member of staff already in place. her previous employer gave her 20 days annual leave inc bank holidays. I have given her 24 days paid leave for 2008/09, even though I took over mid year , she now wants more paid leave before april 09 as she thinks she is entitled to an extra 1 day per year she has been working at the salon (9years). Is this correct? She will be recieving at least 28 days for 09/10. Please advise me. Lesley.
Posted by sam
Dated: February 6, 2009 7:32 PM
hi, i work full time in a salon and didn't take my full anual leave before my entitlement ran out. should i be paid for these days or do i loose them if theyre not taken?
Posted by saheanz
Dated: March 19, 2009 4:35 PM
i wish to giving a spase for hairdresser nad beautysion warking on comision base haw cane they start plz help me on these matter
Posted by Marjorie Simpson
Dated: July 15, 2009 1:12 PM
Does sick leave count for holidays or are some days lost
Posted by Kate
Dated: July 20, 2009 4:07 PM
Hi Marjorie, David has sent this response to your question. Hope it answers your querie, but should you have any further questions, please do drop us a line.
Staff continue to accrue holidays whilst they are off sick
If holidays were booked and an employee was sick and therefore didn’t take them then normally there are 2 options
1) Sometimes staff prefer to get the holiday pay rather than SSP (although this shouldn’t strictly happen)
2) the holiday should be taken at another time
Posted by Dee Scheepers
Dated: January 12, 2010 10:24 AM
Hi there,
I had been working at a salon for just over one & a half years on a part time basis(3 days a week, 9 hours a day), in this period of working there I had never received any annual leave pay or sick pay. I then booked a holiday to my home country 2 months before going and my employer was fine about it all, until 3 days of me finishing. I got replaced and lost my job, there were no warnings(verbal or written), I received no notice & only now found out about all the rights I had/have. I have been put in a really bad position & I am now forced to takie legal action for unfair dismissal.
I would like to give my now ex-employer the chance to sort everything out before I do so. I would however like to know how you work out the annual leave in my situation working 3, 9 hour days a week, and in your opinion could money be claimed for my financial loss since I got let go?
Posted by Kate
Dated: January 14, 2010 3:49 PM
Hi Dee,
I have moved your question the the legal forum where David Wright will reply.