Under Section 16 of the Holidays Act 2003 all employees were entitled to a minimum of 3 weeks annual leave a year.

Schedule 1 of the Act increased this minimum entitlement to 4 weeks a year from 1st April 2007.

For staff receiving the minimum entitlement of 3 weeks annual leave a year, the change is automatically handled by Ace Payroll. Do nothing, and the change to 4 weeks a year is automatic.

For staff that were already receiving 4 weeks a year, Ace Payroll also does nothing. The employee entitlement stays at 4 weeks a year.

These notes apply to employers that paid their staff 4 weeks a year before 1st April 2007, and now wish to increase the entitlement to 5 weeks a year.

Our research has indicated that less than 1% of employers intend to do this.

Ace Payroll contains a number of different methods for the calculation of annual leave, to suit employer preferences.

If using the default As Per Act method then follow these instructions.

If you have chosen to use the Percentage Of Gross method then follow these instructions.