If you run a small business in the UK, you’ve probably had questions crop up around bank holidays:
“Do I have to give them off?”
“Should part-timers get the same number?”
“What if someone’s on maternity leave or doesn’t usually work Mondays?”
They might feel like special days in the calendar—but when it comes to employment law, the truth is: bank holidays aren’t actually that special.
Let’s unpack what that means for you and your team, and how to manage bank holiday entitlements fairly, especially for part-time workers and those on family or long-term leave.
1. Bank holidays are not an automatic right
There’s no legal requirement to give employees bank holidays off. The law says workers are entitled to 5.6 weeks of paid holiday per year – that’s 28 days for someone working five days a week. It’s up to you whether bank holidays are:
- Included within those 28 days (e.g. 20 days plus 8 bank holidays);
- Given on top of statutory entitlement (e.g. 28 days plus bank holidays); or
- Not taken off at all
What matters is that employees receive at least the legal minimum overall, and that the approach is clearly outlined in their contract.
2. Part-time workers must not be disadvantaged
Here’s where things often go wrong.
Let’s say you close the business on bank holidays and give those days off to full-time staff. If your part-time employee doesn’t usually work Mondays, they may end up with fewer days off over the year, simply because most bank holidays fall on Mondays.
That’s not fair, and it’s not legal either.
Under UK law, part-time workers are entitled to pro-rata holiday, including an equivalent allowance for bank holidays – even if they don’t work on the actual bank holiday days.
Fair approach: Pro-rate the total number of days off (including bank holidays) based on the number of days or hours the employee works, and allow them to take those days at other times if they don’t work on the bank holiday itself.
3. Employees on maternity or family leave still accrue holiday
Another common misunderstanding is around employees who are on:
- Maternity leave
- Shared parental leave
- Adoption leave
- Long-term sickness
These employees continue to accrue their full holiday entitlement, including any contractual bank holiday allowance, while on leave.
So, if you normally offer 28 days plus bank holidays, and someone is away on maternity leave for six months, they’re still entitled to the holiday (and bank holidays) they would have accrued during that time – even if they couldn’t use the bank holidays because they weren’t working.
When they return, they can take the accrued days as leave, or you can agree to carry them over or even pay them in lieu (depending on your policy).
4. What if you’re open on bank holidays?
If your business stays open on bank holidays – common in hospitality, retail, and healthcare – you may ask employees to work those days. That’s fine, as long as it’s contractually agreed and they’re still able to take their full 5.6 weeks’ leave across the year.
Contrary to popular belief, there’s no legal right to extra pay for working bank holidays (e.g. time and a half) – but many employers choose to offer it as a goodwill gesture or recruitment incentive.
5. How to manage bank holidays fairly and clearly
To avoid confusion, it’s important to be clear, consistent, and fair across your team. Here’s how:
- State your holiday policy clearly in contracts: Explain whether bank holidays are included or additional.
- Pro-rate fairly for part-time staff: Use a calculator or HR software to ensure accurate entitlement.
- Keep good records: Track accrued holiday for those on leave so you can pay or grant it later.
- Communicate openly: Let your team know how bank holidays are handled and who’s expected to work them.
- Be flexible where possible: If someone doesn’t benefit from a bank holiday day off, let them use that entitlement at another time.
Final thoughts
Bank holidays may be marked in red on the calendar, but from a legal standpoint, they’re just like any other day – part of your employees’ overall entitlement, not an added bonus or a right to extra treatment.
For small businesses, especially with mixed working patterns and part-time staff, it’s essential to take a consistent and transparent approach to avoid unintentional discrimination or disputes.
So, are bank holidays special?
Not legally. But managing them well is definitely a mark of a great employer.
If you need any further advice on managing bank holiday entitlements fairly, do get in touch.