Recruiters are changing their employment contracts and modifying the amount of rolled-up holiday pay they pay out, according to one employment lawyer.

With a rise in statutory holiday entitlement from 20 days to 24 to take effect from 1 October, Rob Eldridge, employment partner at law firm Berwin Leighton Paisner, said two of his clients had raised the hourly rate for rolled-up holiday pay to more than 10% from 8%.

Eldridge also anticipates that this rate will rise further when the second half of the increase kicks in, from 24 days to 28, from 1 April 2009, and could be as high as 12%.

He told Recruiter: "I've spoken to two clients and they are already doing this."

The new Working Time (Amendment) Regulations will increase statutory holidays to a minimum of 28 days, including the eight public and bank holidays. Temporary workers will be entitled to the same level of holiday pro rata.

Rolled-up holiday pay is common in sectors where working patterns are irregular or short-term contracts are widely used.

• The National Minimum Wage increases to £5.52 an hour, from £5.35, on 1 October.