Cracking the Easter 2027 holiday conundrum

Claire Hollins, Partner

Because Easter falls entirely in March, in 2027, employers operating a 1 April to 31 March holiday year face a unique scheduling puzzle, which if not addressed could accidentally breach statutory holiday rules.

Under the Working Time Regulations 1998 (“Regulations”), workers are entitled to a minimum of 5.6 weeks’ paid annual leave per year. This can include bank holidays, but unless there is a contractual right to take bank holidays as holiday, there is no separate statutory entitlement to do so.

For employers who offer employees and workers 20 days’ holiday plus the right to take the eight bank holidays each year, this will be compliant with the Regulations in the vast majority of cases.

However, because both Good Friday and Easter Monday fall in March, in 2027, this means that employers in England and Wales (there are more public and bank holidays in Scotland and Northern Ireland) who operate a 1 April to 31 March holiday year and offer the minimum statutory holiday entitlements only (including bank holidays), will need to award two additional days annual leave in the 2027/2028 holiday year. Without those additional days employees and workers would receive only have 26 days holiday that holiday year, which would breach the Regulations.

Because of how the calendar falls, the preceding 2026/2027 holiday year will unusually contain two Good Fridays and two Easter Mondays. Crucially, employers cannot offset these extra holidays against statutory entitlements in the subsequent year.

Whether employers must allow the additional two bank holidays above the usual eight will depend on the wording of the contract.

• If the contract says “the usual bank holidays” or references bank holidays generally: you will likely have to absorb both Good Fridays and Easter Mondays.
• If the contract caps the entitlement at “eight bank holidays”: you are more likely to be able to limit the allowance though employees would need to use their normal holiday allowance to cover the additional days or work on those days.

Remember though, if you require an employee or worker to take holiday on a particular day, notice at least twice the length of the holidays to be taken must be given.

What are the implications for employers who breach the Regulations?

Workers who are prevented from taking their statutory holiday entitlement under the Regulations can bring claims in the employment tribunal. If a claim succeeds, compensation may be awarded, with the tribunal deciding the amount by taking into account the level of default and any loss caused by the breach. Employees relying on contractual holiday rights could also bring a breach of contract claim if those rights are not honoured.

Since 6 April 2026, employers have had a duty to keep “adequate” records to demonstrate compliance with statutory annual leave entitlements. From 2027 the newly established Fair Work Agency may also be given the ability to enforce statutory holiday entitlements and pay.

To avoid the cost, management time and adverse publicity of such claims, employers should check that all employees and workers receive their full holiday entitlement in each holiday year.

Practical next steps

Review your holiday year; check how bank holidays are described in contracts and handbooks; identify workers who receive only the statutory minimum entitlement; and decide how any shortfall in 2027/2028 will be addressed and communicated.

If you need advice on holiday entitlements or the terms of your employment contracts, please contact Claire Hollins on 0161 832 3434 or [email protected].