T: 01352 312091
As we step into the new year, employers and employees alike are gearing up for significant changes set to take effect with the Employment Rights (Amendment, Revocation, and Transitional Provisions) Regulations 2023, starting from 1st January 2024. We would like to shed light on the key modifications around holiday pay, working time, and the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
One of the noteworthy updates revolves around rolled-up holiday pay. Previously considered unlawful, the government is poised to reintroduce this practice but with a targeted approach. Rolled-up holiday pay will now be applicable only to individuals with irregular working hours or those engaged in part-year employment, such as seasonal workers. This move aligns with the government’s commitment to simplifying holiday pay regulations for atypical work arrangements.
Following the Supreme Court Judgment in Harper Trust vs Brazel in 2022, the 12.07% percentage method for calculating annual leave accrual for part-year and irregular hours workers was removed. This led to concerns about these workers potentially receiving more holiday than their year-round counterparts. In response to the uproar, the 12.07% method is set to make a comeback next year. However, these changes will apply to annual leave years starting on or after 1st April 2024, with further guidance expected early this year.
The requirement to maintain a separate record of daily working time for all staff will no longer apply. While records of working time should still be kept to ensure compliance with Working Time and minimum wage regulations, this adjustment aims to streamline administrative burdens for businesses.
The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) can be intricate, especially for smaller businesses. Starting from the new year, small businesses, defined as those with fewer than 50 employees or where the TUPE Transfer involves fewer than 10 employees, will have the flexibility to consult with affected staff on an individual basis, alleviating some of the challenges associated with TUPE compliance.
As these regulations come into effect, staying informed and adapting to the changes will be crucial for both employers and employees alike. Keep an eye out for additional guidance in the new year as we navigate the evolving landscape of employment rights.