Are Bank Holidays Paid in the UK?

Bank holidays can be a flashpoint in rota planning and payroll - especially if you’re juggling full-time, part-time, and zero-hours staff. As an employer, you want to stay fair, consistent and compliant while keeping the business running on peak trading days.

So, are bank holidays paid? Are they “working days”? And can you require staff to work them? In this guide, we break down the legal position under UK law and show you how to set up clear, contractual rules that work for your business.

What Counts As A Bank Holiday And Is It A Working Day?

“Bank holidays” are specific public holidays declared across the UK (some are nation-specific). In simple terms, they are not automatically “non-working” days. Whether a bank holiday is treated as a day off for your team depends on your contracts and policies.

For example, many hospitality, retail and leisure businesses trade on bank holidays because demand is high. In those sectors, a bank holiday is typically a working day for at least some roles - with leave handled by request/approval, and pay set by the contract or policy.

Key point for employers: there’s no general right under UK law to have bank holidays off, and there’s no default rule that bank holidays must be paid at a premium rate. You choose the approach in your contract and your practice - you just need to make sure it’s lawful and consistently applied.

Are Bank Holidays Paid By Law In The UK?

No. There’s no automatic right to paid time off on bank holidays, and there’s no legal requirement to pay a higher rate if staff do work a bank holiday.

What the law does say is that most workers are entitled to a minimum of 5.6 weeks’ paid holiday per leave year under the Working Time Regulations 1998 (pro‑rated for part-time). This statutory entitlement can include bank holidays - or you can offer them on top - but it’s your contract that should make that crystal clear.

If your contract states “28 days inclusive of bank holidays” for a full-time worker, that means bank holidays count towards the 5.6 weeks. If your contract says “20 days plus bank holidays”, the worker gets 20 days plus the 8 UK bank holidays (or the number that applies to your nation/region) - i.e. a higher entitlement than the statutory minimum.

Two more practical points to keep you compliant:

• Average holiday pay: Where the law requires you to include “normal remuneration” in holiday pay for certain statutory leave (such as regular overtime or commission that is intrinsically linked to the role), factor this into your calculations for relevant weeks.
• Working time limits and rest: If you’re rostering bank holiday shifts, remember your duties around maximum weekly working time and rest breaks under the Working Time Regulations.

Setting Contract Terms For Bank Holidays

Your best protection is clarity in your written terms. Decide your business approach and enshrine it in an Employment Contract and, ideally, your Staff Handbook or policy so managers apply it consistently.

Inclusive vs Plus Bank Holidays

First, choose whether holiday is “inclusive of bank holidays” or “plus bank holidays”. Both are lawful - but they lead to very different entitlements and scheduling expectations. If you use “inclusive”, make sure the wording matches what you actually intend and how you roster. If you promise “plus bank holidays”, ensure you have enough cover to operate on those days or set out any exceptions. It’s worth reviewing what “Inclusive of Bank Holidays” means in practice so there’s no room for dispute.

Who Has The Final Say On Leave?

Employees don’t have an automatic right to take leave on a specific bank holiday. Your contract and policy should be explicit that leave is subject to business needs and approval. You can also set “blackout” periods or minimum staffing levels, so long as you apply them fairly and respect overall holiday rights. For a quick refresher on the boundaries, see when an employer can refuse Annual Leave.

Requiring Work On Bank Holidays

If your business opens on bank holidays, include a clause stating that employees may be required to work public/bank holidays as part of their normal duties, with appropriate notice and pay as per the contract. You can also state how you’ll handle time off in lieu (TOIL) if that’s your model rather than a pay premium.

Pay Rates, TOIL And Enhancements

There’s no legal requirement to pay “time and a half” or “double time” on bank holidays. You can maintain normal rates, offer a premium, or offer TOIL - but whatever you choose, write it down and stick to it. If you offer enhancements, include the rate, how it accrues, and any conditions (e.g., premium pay only applies to certain hours or roles).

Notice And Scheduling

State how much notice employees should give for leave requests on bank holidays and how you’ll prioritise requests. You may also set a rota system for fairness (e.g., alternating who works Christmas/New Year each year). If you need staff to take or cancel leave due to business needs, build in the statutory notice rules and cross-refer to your policy on managing requests. If you need to direct when leave is taken, it’s worth understanding what UK law allows employers to do when they dictate holidays.

Avoiding Implied Entitlements

Be consistent. If you’ve always paid a premium or always granted a particular bank holiday off without exception, that pattern can become part of the contract by “Custom and Practice.” If you want the flexibility to change, make sure your written terms and communications reinforce that any enhancement is discretionary and can be amended following consultation.

Managing Part-Time, Shift And Zero‑Hours Staff Fairly

One of the biggest problem areas for employers is fairness across different working patterns. The key principle is comparability: part-time and shift workers shouldn’t be disadvantaged compared to full-time staff doing similar work.

Part-Time Workers (Pro Rata)

Part-time workers are entitled to the same holiday rights on a pro‑rata basis. If you give full‑timers “20 days plus bank holidays”, you should give part‑timers an equivalent pro‑rated allowance that covers bank holidays - not just the bank holidays they happen to be scheduled to work. Otherwise, you could end up treating staff differently simply because their normal working days fall on fewer bank holidays.

Many employers allocate part-time holiday in hours rather than days. That way, if a bank holiday falls on a part‑timer’s normal working day, they can use the equivalent hours from their allowance. If it falls on a non‑working day, they don’t lose out - they can take those hours at another time.

Shift, Rota And 24/7 Operations

In shift-based businesses, it’s common to treat bank holidays as normal working days, with either a pay enhancement or TOIL outlined in the contract. Make sure the enhancement applies fairly across comparable roles and shifts, and that your scheduling rules (e.g., rotating who works key holidays) are clear and documented.

Zero-Hours And Casual Workers

Zero-hours workers do accrue statutory holiday pay based on the hours they’ve worked. If they work a bank holiday shift, you pay them for those hours as usual (with any contractual enhancement if applicable). If they don’t work, there’s no separate right to paid time off on that day - their holiday pay accrues over time and is taken when they book leave or in line with your policy. Ensure your zero-hours terms clarify how holiday accrual, requests, and pay operate in practice.

Agency Workers

If you engage agency workers, remember that after the 12-week qualifying period they’re entitled to equal treatment on basic working conditions compared to comparable employees. Make sure your contract with the agency, and your internal policies, align with how bank holiday shifts and enhancements are handled.

Pay Mistakes And Deductions

Be careful with adjustments. If you ever need to correct an overpayment related to bank holiday leave or pay enhancements, you’ll generally need express authorisation in writing and a lawful basis to deduct from wages. Have a clear clause and follow your policy to stay within the rules on Wage Deductions.

Can You Require Staff To Work Bank Holidays?

Yes - if your contract and policy allow it and you roster fairly. In many sectors, working bank holidays is part of the job. The law doesn’t prohibit you from requiring attendance; it simply requires you to respect overall holiday entitlements, working time limits and any contractual pay/TOIL terms you’ve set.

Refusing Leave On Peak Days

You can refuse a bank holiday leave request for legitimate business reasons, provided you apply your policy consistently and don’t discriminate. Your contracts should set out how leave is requested, the required notice, any blackout periods, and how decisions are made. This avoids accusations of unfairness and reduces last-minute disputes.

Directing Leave

It’s lawful to require staff to take leave at certain times (for example, when the business closes on a bank holiday), provided you give the correct notice. Include this mechanism in your written terms so managers know the process and staff aren’t surprised. Your disciplinary and absence procedures should also address what happens if someone simply doesn’t attend a required bank holiday shift.

Pay And Holiday Interaction

Where a bank holiday is a normal working day in your business, and an employee doesn’t have approved leave, absence is usually unpaid and could be a conduct issue. Make sure this is reflected in your policy and that your team understands the rules well in advance. Having a clear, accessible Staff Handbook is invaluable so everyone is working from the same playbook.

Safety, Hours And Breaks

Finally, keep an eye on fatigue. Peak trading on bank holidays can push teams hard. Build rosters that respect rest periods and weekly working time limits, and ensure breaks are realistic on the day - that’s both a compliance issue and a culture issue under the Working Time Regulations.

Key Takeaways

• There’s no automatic legal right to paid time off on bank holidays, nor a legal requirement to pay premium rates - your contract sets the rules.
• Statutory holiday is 5.6 weeks per year for most workers; your contract can make that “inclusive of bank holidays” or “plus bank holidays”. Be clear and consistent about which model you use.
• Write down who approves leave, whether bank holiday work is required, and how pay or TOIL works. Use a robust Employment Contract and align it with your Staff Handbook.
• Treat part-time and shift staff fairly: use pro‑rata entitlements and hour-based holiday allocations to avoid disadvantaging people based on their normal working days.
• If your business opens on bank holidays, you can refuse leave and require attendance, provided your terms allow it and you manage requests fairly. For boundaries, revisit when you can refuse Annual Leave.
• Avoid creating unintended rights through long-standing practices; inconsistent enhancements can become contractual by Custom and Practice.
• Plan rosters with compliance in mind - respect rest and working time limits, and ensure any wage adjustments follow a clear policy on Wage Deductions.

If you’d like tailored help to draft or update your bank holiday clauses, set up consistent policies, or sense‑check your approach against UK law, our team can help. You can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no‑obligations chat.