Holiday pay
Following the Supreme Court ruling in the case of Harper v Brazil, the calculation of holiday pay for regular and part year workers became more complicated and expensive for employers. The government is overruling the decision and proposes to reinstate the principle previously used by employers permitting holiday pay to be calculated at the hourly rate of 12.07%. This will only apply to holiday years from 1st April 2024 and is subject to a maximum of 28 days each year and is subject to new legislation having first been passed.
Equality Act 2010 (Amendment) Regulations 2023
Not a change in the law as such, just a rewriting to make the law clearer and ensure tribunals continue to interpret (post Brexit that is) UK equality laws in line with EU case law. Key areas for employers include expanding the definition of disability, protection of breastfeeding mothers and the special treatment of women in connection with pregnancy, childbirth or maternity.
National Minimum Wage
Following the autumn statement 2024 rates will be increased from 1 April as follows:
- For those aged 21 and over the national living wage will see an increase to £11.44 (increasing by £1.02)
- for those aged 18–20 an increase to £8.60 (increasing by £1.11)
- for those aged 16-18 and apprentices an increase to £6.40 (increasing by £1.12)
Holiday accrual pay
The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 will bring a number of changes into law from Monday 1 January 2024. These include the ability for employers to
- roll up holiday pay (but only for some categories of workers),
- align normal pay to be defined to include overtime commission and other payments,
- a new system for accruing leave for part year and casual staff to reflect the numbers of hours worked,
- clarity over when workers can carry over holiday from one year to the next, and
- a change to record keeping such that employers must now keep “adequate” records to demonstrate they’ve complied with the Working Time Regulations in respect of the maximum working week, working time for young workers, night work, health assessments and the transfer from night work to day work.
TUPE consultations
The new regulations above also impact TUPE consultations. Businesses having 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 the affected employees where there are no existing worker representatives in place.
Other changes to look out include the right to request flexible working arrangements enabling eligible employees to ask for their terms and conditions to be changed. This can include working from home, job share and part time work.
And for 2024…
New legislation is expected to come into effect in May 2024 requiring employers to ensure all tips, gratuity and service charges are allocated fairly and transparently between their workers.
Legislation has been passed to introduce the duty for all employees to take reasonable proactive steps to prevent sexual harassment of employees during the course of their employment - expected to come into force October 2024.
Should you want further information on how any of these changes may affect your business, or to attend any of our in-person employment law seminars in 2024 do get in touch with Employment Partner Chris Piggott by email using chris.piggott@mfgsolicitors.com or his Assistant Alena Dudrah, alena.dudrah@mfgsolicitors.com. You can also call on 0121 237 4306.
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