If your organisation operates a holiday year from 1 April to 31 March, there’s an important change coming that many employers are unaware of.
Due to how Easter falls over the next two years, the number of public holidays will vary significantly, and this could directly impact your employees’ annual leave entitlement.
What’s Changing?
- 2026/27 holiday year: 10 public holidays
- 2027/28 holiday year: 6 public holidays
This difference isn’t just administrative, it could affect how much leave your employees are legally entitled to, depending on what their contract says.
Why Does This Matter?
The key issue comes down to how annual leave is written in your contracts.
Most employers use one of these approaches:
1. “X days plus public holidays”
If your contracts are worded this way, employees may be entitled to:
- More leave in 2026/27 (10 bank holidays)
- Less leave in 2027/28 (6 bank holidays)
This is because public holidays are added on top of their core entitlement.
2. “X days inclusive of public holidays”
In this case:
- Employees receive a fixed total entitlement each year
- The number of public holidays doesn’t change their overall leave
Where Employers Can Get It Wrong
Problems arise when businesses:
- Apply the same number of days every year without checking contracts
- Assume public holidays “balance out”
- Fail to align practice with contractual wording
If handled incorrectly, this could lead to:
- Breach of contract claims
- Unlawful deduction from wages claims
- Employee relations issues and complaints about fairness
With Employment Tribunal claims already on the rise , getting the basics right has never been more important.
What Should Employers Do Now?
If you operate an April–March holiday year, now is the time to act.
We recommend:
- Review your employment contracts and holiday policies
- Check how annual leave entitlement is clearly expressed
- Identify any risk areas or inconsistencies
- Train managers so entitlement is applied correctly
- Communicate clearly with employees ahead of April 2026
- Update your HR systems and holiday booking tools
Taking proactive steps now can prevent costly issues later.
Frequently Asked Questions
Possibly, but it depends on your contracts.
If your wording says “plus public holidays”, employees may have a legal right to different totals each year.
Yes, but this usually requires:
- Employee consultation
- Agreement to the change
You can’t make this change unilaterally without risk.
If you’ve done this consistently over time, it could be argued that this has become custom and practice.
This means employees may claim it’s now an implied contractual right — even if the written contract says something different.
How Bhayani Law Can Help
This is a great example of how small wording differences can create real legal and financial risk.
At Bhayani Law, we help employers:
- Review and update contracts and policies
- Align holiday practices with legal requirements
- Manage employee communications
- Reduce the risk of claims
If you’re unsure whether your current approach is compliant, now is the time to check.
Speak to our expert HR and employment law team today on 0333 888 1360 or email [email protected]
