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There’s a new draft statutory instrument (The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023) which is likely to mean a major change in the approach to rolled-up holiday pay amongst other new laws.

These new laws (including the rolled-up holiday pay changes) will likely come into force on 01 January 2024. Here’s what you need to know:

Rolled-up holiday pay

Rolling up holiday pay (12.07% of pay) will be lawful for part-year workers and individuals working irregular hours.

What needs to be included in holiday pay

Holiday pay must include commission and other payments (such as overtime payments). This means holiday pay will become more expensive for those not currently including those elements.

Record-keeping requirements

Additional working-time record-keeping requirements will be removed. They currently state that working hours and rest records must be kept for all – even those who work regular hours.

TUPE consultation

You’ll be able to consult with employees directly rather than through representatives when there is a small TUPE transfer (fewer than 10 employees), or the business undergoing any size of TUPE transfer has fewer than 50 employees.

EU case law

EU case law is being enshrined into UK law so that:

  • All statutory leave can be carried over to the following year if the reason the employee didn’t take it was because they were on family-related leave
  • Four weeks’ leave (the statutory regulation 13 leave) can be carried over for up to 18 months where the worker can’t take it due to sickness or because they’ve not been given the opportunity to take it (or haven’t been reminded that any untaken leave will be lost).

There are lots of new laws to digest so here’s how we’re helping:

Video – Stefan Mars (Head of Legal) has recorded a 30-minute update summarising all of the new laws coming into force and how to deal with them practically – available to access here later this week.

Summary – we’re producing a one-page summary as a reference tool to remind you about the changes – you’ll receive an email to download directly.

Diagnostic – we’re producing a diagnostic tool so you can work out whether the change in holiday laws will affect you – you’ll receive an email to access the tool.

Documents – we’re updating our documents to ensure the changes are all in place on the date of the legal change. If you subscribe to Intelligent Employment you’ll receive notification by email. If you don’t currently access the service and want help with the changes, get in touch here.

This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.