Employment changes likely to come into force on 1st January

The Government has published draft regulations containing amendments to the law on holidays, TUPE and working time regulations. The changes, which are likely to come into force on 1 January 2024, are:

1. Holidays
Holiday pay calculations will be simplified by making rolled-up holiday pay lawful for part-year workers and those who work irregular hours, reducing the administrative burden of calculating holiday pay and overturning the Supreme Court case of Bazel which had ruled that employees working only part of the year would accrue holiday all year round. Now, holiday entitlement for such workers can be calculated at 12.07% of the hours worked in the previous pay period.

It has also been clarified that for the purposes of holiday pay for the first 4 weeks of holiday entitlement, ‘normal remuneration’ will be defined to include commission payments and other payments, such as regular overtime payments.

In addition, EU law is to be retained making it clear holidays can be carried over where a worker is unable to take their leave due to being on family related or sick leave and where ; a worker has not been given opportunity to take the leave.

2. TUPE
Small businesses (with fewer than 50 employees) and businesses of any size undertaking a small transfer (of fewer than 10 employees) will be allowed to consult with their employees directly if there are no existing representatives in place. Where employee representatives, including trade unions, are in place, employers will be required to consult them.

3. Record Keeping Requirements
The additional working time record keeping requirements will be removed.

Businesses will still be required to keep adequate records to demonstrate compliance with the Working Time Regulations, however, businesses will no longer have to keep records of workers daily working hours due to the potential high cost and administrative burden involved.

Get in touch with a member of the Employment Team with any questions.