Business Could the 2026/27 Bank Holidays Calendar Create Contract Risks for Employers?

You may have seen recent articles highlighting an unusual quirk in the upcoming UK bank holidays calendar. Due to the timing of Easter in 2026 and 2027, some employers operating on a April-to-March holiday year could see 10 bank holidays in one holiday year and only 6 in the next. While this may appear to be nothing more than a calendar anomaly, it could pose contractual risks for employers if the wording of holiday entitlement is unclear or inconsistent.

Why does this happen?

This situation occurs because Easter falls later in 2026 and earlier in 2027.

• In 2026, Easter falls in April
• In 2027, Easter falls in March

For organisations with a holiday year running from April to March (based on a financial year), both Easter bank holiday periods fall within the same leave year. This results in an unusual situation where one holiday year has 10 bank holidays, while the following year has only 6. Employers with a calendar-year holiday entitlement (January to December) are unlikely to encounter this problem, as bank holidays are more evenly distributed throughout the year.

What risks could this create for employers?

There are two primary risks that could occur depending on how holiday entitlement is defined in employment contracts or Statements of Terms.

Risk 1: Managing a year with 10 bank holidays

Some employers may question whether they must recognise all 10 bank holidays or limit this to the usual 8 days. The answer will depend on the wording of employment contracts. If contracts state that employees are entitled to annual leave plus bank holidays, employers may be expected to honour all bank holidays that fall within that holiday year.

Clear wording is vital to prevent confusion or inconsistent application.

Risk 2: Managing a year with only 6 bank holidays

In the following year, when only 6 bank holidays occur within the leave period, employees might claim this indicates a reduction in their contractual entitlement. Even if employees benefited from extra bank holidays last year, contract law does not follow a “swings and roundabouts” principle. Entitlement must be based on what the contract explicitly states.

Without clear wording, this could potentially lead to:

• Employee complaints
• Grievances
• Requests for clarification
• Employee relations challenges

What should employers review now?

This presents a good opportunity for employers to review their employment contracts and holiday clauses, especially where different contract versions are in use across the workforce. In many cases, well-drafted contracts will already provide sufficient protection.

Lower-risk wording typically includes:

• Holiday that has been defined as a specified number of days plus bank holidays
• Clear definitions of recognised bank holidays
• Consistent language throughout employee contracts

Potential higher-risk wording may include:

• Holiday expressed as a total number of days, including bank holidays
• Contracts in which the recognised bank holiday list has been removed
• Agreements with modified standard wording
• Older contracts that might not align with current best practices

Where entitlement is expressed as a single inclusive figure, employers may need to consider whether clarification is needed to prevent misunderstandings.

Do employers need to act?

For many organisations, no immediate action will be necessary if contracts are well drafted and consistently enforced. However, in cases of any uncertainty, employers might find it advantageous to:

• Reviewing contract language
• Recognising employees under different terms
• Checking for non-standard clauses
• Seeking advice prior to implementing changes
• Considering whether clarification might be beneficial

In certain circumstances, employers might consider implementing a temporary contractual variation or providing a written clarification. Any contractual amendments should always be managed with care and proper consultation.

Why proactive contract reviews matter

Situations like this rarely happen due to deliberate choices. More frequently, they occur because minor variations in contract wording only matter when unusual calendar circumstances emerge.

Taking a proactive approach now can help employers:

• Avoid contractual disputes
• Maintain positive employee relations
• Ensure fair and consistent treatment
• Reduce legal and operational risks
• Strengthen HR compliance

A quick review now could prevent a more serious problem later.

How Spotlight HR can support your business

If you are unsure whether this issue might impact your organisation, Spotlight HR can assist in reviewing your employment contracts and spotting any potential risks before they develop into problems.

Our team can support you with:

• Reviewing clauses related to holiday entitlement
• Detecting inconsistencies across contracts
• Recommending realistic solutions
• Supporting contract updates where necessary
• Providing clear, practical HR advice

If you want reassurance that your contracts are still fit for purpose, contact Spotlight HR for practical, straightforward support.

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