If approved by the Privy Council and formally designated by the King, it would create an additional bank holiday for Scotland, the first bank holiday to be connected to a World Cup appearance in nearly three decades.
The announcement has sparked understandable excitement across the country, but for employers it also triggers a very practical question: will your workforce be contractually entitled to this extra day off, and how should you prepare for the operational impact?
Whilst Mr Swinney’s announcement has generated excitement, it raises a familiar but often misunderstood issue amongst employees: a new bank holiday does not automatically mean employees are entitled to the day off.
For employers, the key question is not whether the holiday is officially designated, but how your employment contracts are drafted. The wording of those clauses will determine whether the additional day becomes a contractual entitlement or a discretionary benefit for employees.
We have provided a helpful explanation for the most common contract clauses to help you identify which will apply for your staff.
If a contract is silent on bank or public holidays, or simply provides for the statutory minimum annual leave (currently 5.6 weeks/28 days for full-time workers under the Working Time Regulations), employees have no automatic right to paid time off when a new bank holiday is introduced.
In these circumstances, employers are not required to grant the day or pay for it unless they choose to do so as a matter of discretion or policy.
Where contracts specify a set number of days’ annual leave plus bank holidays, employees will typically be entitled to any newly designated bank holiday in Scotland. This is because the clause incorporates all bank holidays recognised at any given time, not just those in place when the contract was signed.
For employers, this means the additional day will need to be honoured for your staff unless you renegotiate the contractual terms. You should also consider the knock‑on effect on part‑time staff, who may be entitled to a pro‑rated increase.
Some contracts list each bank holiday by name. For example, the contract may state “Christmas Day, Boxing Day, New Year’s Day…” and so on.
In these cases, employees are only entitled to the holidays expressly listed. This means a newly created bank holiday would not automatically fall within the contract.
If you are an employer in this position, you have flexibility. You may choose to:
Whatever approach you take, consistency and clear communication will be essential to avoid grievances or claims of unfair treatment within the workforce.
Where contracts specify a total number of days including bank holidays, employees have no automatic right to an extra day off. This means the employer can decide whether to increase the overall entitlement or keep the total unchanged.
If you choose not to increase entitlement, you should consider whether this aligns with employee relations, organisational culture, and past practice when new bank holidays are introduced. It is important to remember that some employers choose to grant additional bank holidays as a goodwill gesture, even where not contractually required. This flexibility may be a good opportunity to foster a positive workplace as we enter the new year.
In sectors such as hospitality, retail, transport, and healthcare, employees may be required to work on bank holidays regardless of entitlement. However, this does not mean that employers are off the hook in terms of taking action.
If the new holiday is approved, employers should review:
Again, your employees’ contract and any relevant policies will determine what employees are entitled to receive.
Even though this bank holiday has not yet been formally confirmed, employers would be wise to start preparations as we approach the World Cup season. Early planning will help avoid last‑minute operational challenges and ensure a consistent approach across the workforce.
As a priority, employers should audit their employment contracts to understand which category each employee falls into. It is important to bear in mind that many organisations have a mixture of contractual wording due to legacy arrangements, TUPE transfers, or changes over time. Therefore, a one size fits all approach may not be appropriate.
If this new bank holiday is approved, consider:
Even where employees are not contractually entitled, employers may choose to grant the day as an additional paid holiday. Therefore, employers may wish to consider:
Uncertainty can lead to confusion, assumptions, and employee relations issues.
Once you have decided your approach, communicate it promptly and consistently across the organisation.
The proposed bank holiday is intended to allow Scotland to celebrate a long‑awaited moment on the world stage. However, for employers, it also serves as a vital reminder that bank holidays are not automatic entitlements.
As the proposal moves through the formal approval process, employers should take the opportunity to review their contractual wording, assess operational needs, and plan their approach well in advance of 15 June.
Doing so will help ensure clarity, fairness, and business continuity, whatever the final decision may be for the Scottish workforce.
If you would like support reviewing your contracts, assessing annual leave entitlement across your workforce, or planning a consistent approach ahead of the proposed bank holiday, BTO’s expert Employment Law Team is here to help. Get in touch with us today.
Laura Salmond, Partner: lis@bto.co.uk / 0141 673 6117
Natalie Boal, Trainee Solicitor: nbo@bto.co.uk / 00141 673 6117
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