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So getting paid a day in lieu for a bank holiday might not actually be allowed if its eating into your statutory annual leave entitlement so basically if you are a fairly new starter and have basic holiday entitlement you can only theoretically ask to be paid for 4 bank holidays and must take the rest as annual leaveIf public holidays are included in the 5.6 weeks, you will need to give your employee three compensatory days off later in the year to ensure that he gets his full 5.6 weeks off.
The law does not allow any payment in lieu for statutory holiday entitlement (except when employment terminates) and, therefore, you cannot simply pay him for the three days.