In October 2007, the statutory minimum holiday entitlement rose from 4 to 4.8 weeks (from 20 to 24 days for those on a 5 day week) and will rise to 5.6 weeks (28 days) on 1 April 2009.

Both the BHA and the DTI estimated that the full increase would cost the industry around £200 million a year.

The Low Pay Commission has said that the cost of the October 2007 holiday increase was one factor behind its recommendations for NMW rises that month, averaging around 3.2 per cent, being 'prudent.'

Whether the 2009 NMW rates take account of the second round cost will depend on evidence of the impact.

THEREFORE, PLEASE FAX THIS BACK TO 020 7404 7799 0R EMAIL YOUR ANSWERS TO [email protected] BY 5 SEPTEMBER:

1. Number of employees

....................................................

2. Annual paybill £....................................................

3. How many extra days' holiday a year are your employees receiving NOW IN TOTAL, in comparison with pre-October 2007?

....................................................

4. How many extra days a year will they receive from April 2009 IN TOTAL, in comparison with pre-October 2007?....................................................

5. What action have you taken/ will you take to cope with the reduced number of available working days under questions 3 and 4? Put YES against all which are applicable and then indicate the current annual cost of each action:

(a) Getting staff to work longer hours on days they are working:

....................................................£....................................................

(b) Using agency staff to cover the gaps:

....................................................£....................................................

(c) Buying out the extra days (allowed up to March 2009):

....................................................£....................................................

(d) Recruiting replacement workers:

....................................................£....................................................

(e) Managing with fewer staff hours/days (including proprietors/managers filling in by working longer):

.................................................... Any direct cost?:

£....................................................

(f) Carrying forward holidays above 20 (4 weeks) to the next leave year: ....................................................

Company name (for BHA use only):

....................................................