Ask HR: Do I Have to Pay Employees Extra for Bank Holidays?

There is no legal requirement to pay employees extra for working on a bank holiday, or even to give them the time off. It all depends on the contract.

Time off for Bank Holidays

The employment contract will dictate whether the employee is entitled to time off on the bank holiday or whether the employee is expected to work. If bank holidays are considered normal working days, the employee will be able to take the allocated bank holiday days at other times in the year.

Pay for Bank Holidays

If the employee is entitled to bank holidays off as part of their contract, they will normally receive their normal pay, or average holiday pay if their pay varies throughout the year.

If bank holidays are considered a normal working day, the employee would be entitled to their normal pay unless the contract states otherwise.

If the employee is entitled to bank holidays, but may be required to work for on-call duties, you might choose to offer additional pay or time off in lieu, and this should be stated in the contract.

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