However, unions accused the Government of “kow-towing” to employers after it emerged the new 28 days’ entitlement will come fully into force six months later than first planned.

Workers will get the first half of their extra entitlement from October this year. The other four will be given from April 2009 instead of October 2008.

Companies will also be able to continue giving workers money until April 2009 in place of the four extra days being introduced this autumn.

Firms had argued for the extra time to implement the changes, which the Confed­eration of British Industry
estimates will cost about £4.4billion.

Small businesses and those offering round-the-clock services such as care homes will be hit the hardest.

The DTI said the extra holiday will benefit about 3.5 million women and 2.5 million men. Fourteen per cent of full-time workers – 3.4 million people – stand to gain. About 2.6 million part-timers – nearly a third of that workforce – will also benefit. Their additional leave will be calculated on a pro-rata basis.

Employment Relations Min­ister Jim Fitzpatrick said: “This extra time off will make a real difference in the lives of hard-working people – a proper rest from work and more time to spend with their families and friends. Businesses will benefit too – from reduced absenteeism and a workforce who are more motivated and productive.”

CBI deputy director general John Cridland said: “The Government is right to introduce the extension of statutory annual leave gradually.

“A ‘big bang’ approach would have been more painful for employers.”

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