As the four day Easter holiday approaches, what are the consequences for payroll professionals?
There are two Bank Holidays approaching:
- Friday 03 April 2026 (Good Friday); and
- Monday 06 April 2026 (Easter Monday)
The consequence of these days for payroll professionals is that Bacs payments cannot be made into employees’ bank accounts on:
- The Friday – a common payday for employees who are weekly paid; and
- The Monday – the first day of the tax year is a common payday for pension payrolls
As these days are not classed as days when Bacs will process transactions, processing days are reduced and the three-day processing cycle needs to change. This may require employers to adjust paydays and submit Bacs files earlier than normal to make sure employees are paid on time. ICB points members to the 2026/27 Bacs processing calendar.
For Bookkeepers
For payroll professionals, paying on time is the fundamental consideration, though we combine this with the need to pay accurately. So, we need to think:
- Pay on time and accurately; rather than
- Pay accurately and on time
Note that Scotland is different and they do not have Easter Monday. However, this is still a non-banking day.
As the Bacs calendar indicates, non-banking days are the Bank Holidays that apply in England and Wales, so members need to be aware of the Bacs processing calendar and the days on which Bacs say they will not process transactions.
The secondary legislation (the Regulations) introduce statutory notice requirements to take this unpaid leave and allow this to be varied. They also introduce employment protections which align with those for other child-relate statutory leave, for example, the right to return to work and protection from detriment and unfair dismissal.
Note that the statutory entitlement is unpaid but employers may decide that an occupational policy will convert this to a paid entitlement. However, if an employer does make a payment, this cannot be recovered from HMRC.
This is another employment right that will have to be considered in payroll software and ICB urges members to contact their provider in this regard.
