More new employment legislation coming our way in 2024 – what will that mean for employers? The government has announced draft legislation that will come into effect for most employers from 1st January 2024 although some employers will not need to act on the changes until 1st April to coincide with the start of their holiday leave year.
The new legislation seeks address concerns held by employers about a number of aspects of employment law, simplifying areas such as calculations for holiday entitlements those working irregular or part-time hours, and agency workers. Holiday entitlements and pay for irregular hours and part-year workers. The first significant change is the new method of holiday entitlement accrual for part-time and irregular hours workers. This follows confusion that arose from the Supreme Court’s decision in the Harpur Trust v Brazel case last year that resulted in part-year workers receiving more holiday entitlement than part-time workers who worked the same number of hours on an annual basis.
For those workers on irregular hours, part-time hours or agency workers, their holiday pay will be calculated at 12.07% of their pay and will be able to be paid at the same time as their ordinary pay and the amount of holiday pay will need to be itemised separately on their payslips. The reforms will also see the overturning of the 2006 European Court of Justice (ECJ) ruling that made rolled-up holiday pay for part-time workers and those who work irregular hours illegal. Rolled- up holiday pay is where employers pay workers a sum in addition to their normal hourly rate of pay to represent their holiday pay entitlement. Under the new legislation, rolled-up holiday pay will be allowed once again, but only for part-time workers, irregular hours workers and some agency workers.
It will not be allowed for full-time workers. TUPE Changes Another change will be to the Transfer of Undertakings Protection of Employment (TUPE) rights, which protect employees and their benefits when their employment transfers from one company to another (in part or in full). The changes with the TUPE regulations means that employers with fewer than 50 employees, and businesses of any size carrying out a small TUPE transfer of fewer than 10 employees, will be able to inform and consult directly with affected employees where there are no existing worker representatives in place.
Support and Guidance If you need any support or guidance with developing and implementing these changes – or any other changes – to your policies, procedures, and employment arrangements, please contact Kingswood Group. We will work with you to ensure you have fully compliant documents, policies, and procedures! For a free, no obligation conversation call us on 01245-204450 or email us on
HR@kingswoodgroup.org . We are here to help!