Holiday pay, TUPE, and working time regulations

Hi Besties,

If you aren't aware, the government has unveiled proposed changes in the form of the Employment Rights (Amendment, Revocation, and Transitional Provision) Regulations 2023. This is set to take effect from January 1, 2024, these changes address holiday pay, TUPE, and working time regulations. I have given you my summary below and my thoughts at the end to help you understand the changes.

Simplified Holiday Pay for Part-Timers and Irregular Workers

One notable amendment is the simplification of holiday pay calculations, where rolled-up holiday pay, equivalent to 12.07% of an employee's pay, will be deemed lawful for part-year workers and those with irregular working hours. This change seeks to provide a fair and straightforward method of determining holiday pay, eliminating complexities associated with varied work schedules. However, if you weren't aware the Supreme Court confirmed this year that the 12.07% calculation method was the incorrect way to calculate holidays so who knows how long this arrangement will be in place for this time?

EU Case Law Continuity: Carry Over of Leave

To maintain continuity post-Brexit, the regulations reaffirm various pieces of retained EU case law. Notably, workers facing family-related leave challenges can carry over all statutory annual leave to the following year. Additionally, those unable to take leave due to sickness can now carry over-regulation 13 leaves (4 weeks per year) for a maximum of 18 months. The regulations also address cases in which employers do not inform employees about the leave, denying the worker the opportunity to take the leave or failing to communicate that any unused leave, which cannot be carried forward, will be forfeited.

Defining 'Normal Remuneration' for Comprehensive Holiday Pay

Regulation 13 leaves also states that 'normal remuneration' includes commission payments and regular overtime. Companies will have to incorporate these aspects into the calculation of employees' average earnings while on holiday. The goal is to ensure that holiday pay genuinely reflects their entire remuneration, encompassing various additional earnings.? If you don’t already follow this method, I recommend you review it as soon as possible. It's a prominent topic of discussion, and I believe many employees may become aware of it, leading to potential claims of contract breaches.

Streamlining Record-Keeping: Liberating Small Businesses

A significant relief for businesses comes in the form of the removal of additional working time record-keeping requirements. The ECJ judgment in CCOO v Deutsche Bank, which mandated extensive records for working hours and rest for almost all employees, has been lifted. This liberation from meticulous record-keeping is expected to particularly benefit small businesses, reducing administrative burdens.

Empowering Small Businesses in TUPE Transfers

The regulations extend flexibility to small businesses, specifically those with fewer than 50 employees, engaging in TUPE transfers of any size. Furthermore, businesses of any size undergoing a small transfer involving fewer than 10 employees can now directly consult their workforce in the absence of existing representatives. This direct communication channel aims to streamline the consultation process, fostering better communication in smaller business settings. Conclusion Anticipating the implementation of the Employment Rights (Amendment, Revocation, and Transitional Provision) Regulations 2023 on January 1, 2024, it's apparent that the impact of these changes on your company will differ depending on the processes you currently have in place. I predict that the holiday calculations will have a significant impact on companies, and it's essential to have a plan in place. This could lead to a substantial financial impact on your company, which may be challenging to recover from. Regarding the new, or rather, the previous holiday calculation of 12.07%, this should not pose an issue for businesses, as this method was in use before. However, it is important to ensure that these calculations are accurate.

If you need any clarification or support on the above, contact us at www.besthr.co.uk, and if we have any further updates, we will keep you updated on any changes.