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United Kingdom

Long-term sickness dismissal: payment in lieu of bank holidays

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The answer turns on:

  • what the contract of employment says about bank or public holidays
  • whether any right is contractual rather than statutory, and whether the contract bars payment in lieu of contractual leave on termination

Whether there is a right to bank or public holidays

Under the Working Time Regulations 1998 (SI 1998/1833), workers get 5.6 weeks’ paid leave a year: four weeks plus 1.6 weeks. There is no statutory right to paid time off on public or bank holidays; this depends on the contract’s express or implied terms (Campbell & Smith v Greenwood). If an employer specifies “X days plus bank and public holidays”, that creates a contractual right, including any extra bank holidays announced that year.

Effect of sickness absence

If bank holidays fall within the 5.6‑week statutory pot, any that coincide with sickness accrue and can be taken later. If bank holidays are given in addition to the 5.6 weeks, any day in lieu for a missed bank holiday will usually depend on the contract, as public holidays do not accrue by statute.

Entitlement on termination

On termination, Regulation 14 gives payment in lieu of untaken statutory leave; additional contractual leave can be excluded by contract...

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Web page updated on 27/05/2026

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