From 1 January 2024, these Regulations effect the following changes which employers should be mindful of:
- They simplify the record-keeping obligations to maintain the requirement for employers to keep “adequate” records but states that there is no longer a requirement to necessarily keep a full record of daily working hours if the employer can demonstrate compliance without doing so. The Regulations also provide that an employer can create, maintain and keep such records in a manner and format they see as appropriate;
- They restate in legislation the effect of EU case law in relation to the carry-over of annual leave in certain situations including where an employee has been unable to take holiday due to sickness absence and family-related leave such as dependants leave. In such situations, legislation now requires an employer to allow an employee to carry over untaken leave as long as it is taken within 18 months from the end of the leave year in which the entitlement arose;
- They incorporate the EU concept of “normal remuneration” when calculating a week’s pay into UK law, so that normal remuneration is now expressly stated to include commission and regular overtime;
- They repeal the Covid-19 holiday carry-over rules
From 1 April 2024, the Regulations bring in the following further changes:
- Introducing a method of holiday accrual for irregular hours and part-year workers based on 12.07% of their hours worked in the previous pay period. For workers on sick leave or family-related leave, their accrued holiday entitlement will be based on their average working hours over a 52-week reference period for leave years starting on or after 1 April 2024;
- Permitting rolled up holiday pay for irregular hours and part-year workers for leave years starting on or after 1 April 2024
These Regulations aim to add clarity to an area of law that has been in significant flux in recent years. Particularly for the changes commencing from 1 April 2024, it will be important for employers to ensure they are aware of this development which overturns recent case law and take further advice on the implications of these Regulations for the calculation of holiday pay for irregular hours and part-year workers to ensure compliance.
For more information please contact a member of our employment law team.
From 1 January 2024, these Regulations effect the following changes which employers should be mindful of:
- They simplify the record-keeping obligations to maintain the requirement for employers to keep “adequate” records but states that there is no longer a requirement to necessarily keep a full record of daily working hours if the employer can demonstrate compliance without doing so. The Regulations also provide that an employer can create, maintain and keep such records in a manner and format they see as appropriate;
- They restate in legislation the effect of EU case law in relation to the carry-over of annual leave in certain situations including where an employee has been unable to take holiday due to sickness absence and family-related leave such as dependants leave. In such situations, legislation now requires an employer to allow an employee to carry over untaken leave as long as it is taken within 18 months from the end of the leave year in which the entitlement arose;
- They incorporate the EU concept of “normal remuneration” when calculating a week’s pay into UK law, so that normal remuneration is now expressly stated to include commission and regular overtime;
- They repeal the Covid-19 holiday carry-over rules
From 1 April 2024, the Regulations bring in the following further changes:
- Introducing a method of holiday accrual for irregular hours and part-year workers based on 12.07% of their hours worked in the previous pay period. For workers on sick leave or family-related leave, their accrued holiday entitlement will be based on their average working hours over a 52-week reference period for leave years starting on or after 1 April 2024;
- Permitting rolled up holiday pay for irregular hours and part-year workers for leave years starting on or after 1 April 2024
These Regulations aim to add clarity to an area of law that has been in significant flux in recent years. Particularly for the changes commencing from 1 April 2024, it will be important for employers to ensure they are aware of this development which overturns recent case law and take further advice on the implications of these Regulations for the calculation of holiday pay for irregular hours and part-year workers to ensure compliance.
For more information please contact a member of our employment law team.