There is no legal right for employees to take time off on a bank holiday; that’s why the contract wording is so important. Contracts can be worded in many different ways and here are a few examples and what they mean for employees.
If a contract states an employee is entitled to ‘20 days’ annual leave plus eight bank holidays (with the dates listed), then the employee will not have the right to Friday 24 July off.
If the contract says ‘28 days’ annual leave including bank holidays’, then the employee has the right to take Friday 24 July off, but this will come out of their overall entitlement i.e. it’s not an extra day off.
However, if a contract states ‘20 days’ annual leave plus bank holidays (without specifying the number), then the employee will be entitled to the additional bank holiday and will receive holiday pay for that day.
If contracts don’t allow employees to take the day off, you may still choose to close your business on Friday 24 July and give staff the day off, but you need to apply the decision fairly and consistently.
Step by step actions if an extra bank holiday is announced
Check employee contracts
Review the exact wording in each contract to determine entitlement.
If the contract says employees get all bank holidays, they are entitled to the extra day.
If the contract lists specific Bank Holiday dates, there is no automatic entitlement to the extra day.
If the contract states a fixed number such as 8 bank holidays but does not list them, the employee is entitled to take the day off out of their overall allowance
If the contract allows alternative days, you may designate a substitute day instead of the extra bank holiday.
Communicate with employees
Tell staff early what the decision is and why.
Whether the business will close or remain open.
Whether the day will be paid, unpaid, or taken as annual leave.
How part time and shift workers will be treated.
Any notice employees must give or expect.
Handle disputes and exceptions
Expect conflicts such as prebooked travel or religious observance.
Record decisions so similar cases are treated consistently.
Act quickly and keep communications simple and consistent. The contract is the starting point. Where the contract does not require the extra day, sensible flexibility can protect morale and reduce disruption. Document every decision to reduce risk and keep the team on the same page.
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