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Coronation Bank Holiday 2023 - Guide for Employers

29 March 2023, 16:36

When is the extra bank holiday in 2023?

As an employer, the upcoming bank holiday for King Charles III's coronation on May 8, 2023 is a time for celebration, but it may also cause some operational challenges. With an already long list of holidays throughout April and May, businesses need to ensure that they continue to run smoothly with another day of staff being out of the office.

To ensure compliance with contractual employment entitlements, employers must communicate clearly with their employees and ensure they are aware of their entitlement to time off. This is particularly important since statutory holiday entitlement does not automatically increase when one-off bank holidays are announced.

Who is entitled to a day off?

By law, staff are entitled to 5.6 weeks of paid holiday per year (statutory annual leave). However, not everyone gets bank holidays off, and certain workers such as key, critical, or essential workers may be required to work on bank holidays. In such cases, the workers are usually compensated with equivalent time off in lieu (TOIL). If your business mandates working on bank holidays, this should be clearly stated in the employment contract.

Part-time employees

For part-time employees, the entitlement to paid holiday is calculated on a pro-rata basis. The exact entitlement to time off depends on the wording of the contract.

Employee contracts that run January to December 2023

If your employees have holiday entitlement that runs from January to December 2023, and their contract states:

"20 days of holiday plus bank holidays," they are entitled to the extra day off
"20 days of holiday plus eight bank holidays" they are not entitled and will lose two bookable days
"28 days or 5.6 weeks, which includes bank holidays" they are not entitled and will lose two bookable days

Employee contracts run April 2023 to March 2024

For employees whose holiday entitlement runs from April 2023 to March 2024, the entitlement depends on the exact wording of the contract.

If their contract states "20 days of holiday plus bank holidays," they are entitled to the extra day off
If their contract states "20 days of holiday plus eight bank holidays" they are not entitled and will lose two bookable days
If their contract states "28 days or 5.6 weeks, which includes bank holidays" they are not entitled and will lose two bookable days

How does pay work for those working on a bank holiday?

Although employers have no legal obligation to offer extra pay to staff members who work on a bank holiday, many employers will give it as a goodwill gesture. Some employers may also offer increased rates of pay and time off in lieu (TOIL) as compensation.

Bank holidays and employee engagement

For employers whose employees are not eligible for the extra bank holiday, it's important to note that they are not legally obligated to offer the day off. However, providing the day off as a goodwill gesture can be a consideration for improving employee engagement and morale. Employers may want to weigh the benefits of providing the day off against the potential costs of lost productivity and operational challenges, and make a decision that is appropriate for their business. Communication and transparency with employees about the decision is key to maintaining positive relationships and managing expectations.

What happens when payday falls on a bank holiday?

It's also worth noting that if payday falls on a bank holiday, it's common for employers to pay employees slightly early, such as the day before. However, the exact procedure may vary, and employers must communicate this clearly to avoid any confusion over paydays.

Bank holiday support and advice

If you need further clarification on the issues discussed here or require help and advice with your payroll or any other employment matters, please get in touch with one of our trusted HR experts today.