Pictured above: Andy Jamieson

Almost half of employers surveyed say the extra bank holiday for the royal wedding will have a detrimental impact on their business, according to a new report by East Midlands' law firm Nelsons.

Andy Jamieson, a director and head of employment law at Nelsons says: "49% of all East Midlands' businesses questioned are worried that they will be left paying the price of giving extra time off to their workers and with 81% of respondents confirming they will be closed for the day, the cost could be significant.

"Fewer Leicestershire employers were worried when compared to Nottinghamshire and Derbyshire but at 43%, it shows that it is a significant concern for businesses region-wide. The results were also fairly consistent across size of business, although the figures rose marginally to 57% for larger employers with more than 500 employees."

Results show that 48% of businesses that intend to close for the royal wedding have been required to give their workers the day off as they were entitled to it under their contract of employment.  More than half of the 10% of businesses that will remain open have also had to offer their staff the option to take the day off as paid leave or take a day in lieu later in the year.

Andy continues: "While employers are not statutorily obliged to give their employees public or bank holidays as additional leave, and there is no entitlement to the extra bank holiday for the royal wedding under the Working Time Regulations, many workers across the region have benefited under a contractual right to the extra holiday, as evidenced by our survey."

The survey also showed that 29% of businesses closing for the day have given their workers the time off as paid leave even though they were not entitled to it. Furthermore, one in four employers took the decision to close and give their staff paid time off without checking employment contracts.

"Only 15% of those not closing say that their employees do not have the contractual right to the additional holiday entitlement and are insisting that everyone works on that day, treating failure to turn up as a disciplinary matter," says Andy. "In Nottinghamshire, the figure rises sharply to 42%. Leicester workers fare well as all are being given the option to book time off as part of their annual leave if they wish."

30% of East Midlands businesses staying open have said that while their workers have no right to the extra bank holiday, they will be permitted to take the day off as part of their usual annual leave or as unpaid leave. 

When asked how employees responded to the news that they will have to work or will have to use part of their annual leave to take the day-off, employers on the whole said that they had received no complaints. Only a quarter of businesses reported that their staff were unhappy with the decision and most were not expecting any formal complaints. Just one company in each of Nottinghamshire and Derbyshire counties reported that they were expecting a formal complaint from staff as the day approaches.

According to Andy, employers who offer their workforce good work life balance and flexible working practices can benefit from greater productivity and motivation. He says: "To alleviate the bad news of having staff work on the bank holiday, employers could consider allowing flexi-working around the key parts of the day, or permitting staff to watch the ceremony at work."