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13 Dec New holiday pay regime coming in January 2024

The government plans to implement the following changes to holiday pay to correct the somewhat baffling array of case law that has developed over the last 10-15 years.

New holiday Pay regime coming in January 2024

1. Permitting rolled-up holiday pay

This is a change back to, again, accepting in certain cases rolled-up holiday pay and will apply for irregular-hours and part-year workers and will be applicable for leave years starting on or after 1 April 2024.

2. Simplification of what is deemed to be "normal remuneration".

For example, for holiday pay purposes it will include:

  • Commission; and
  • Regular overtime payments etc.

This, again, is to reflect the case law developments and is due to come into force on 1 January 2024.

 

3. A set method to apply for holiday accruals of irregular-hours and part-year workers and some agency workers too.

This will be based on the commonly accepted 12.07% of hours worked.

Workers on sick leave or other family-related leave will have accrual based on average working hours over a 52-week reference period.

These changes are applicable from 1 April 2024.

 

4. Clarification of when carry-over of holiday is permitted

Carryover will be specified as permitted in certain situations, including the inability to take holiday as a result of sickness and family leave.

This is due to come into force on 1 January 2024.

Posted by Lee Stephens

Lee Stephens heads up the team with the help of his co-Directors, Lee has practiced as a specialist employment Solicitor for almost 20 years now, formerly as a Partner with a leading UK law firm Lee Stephens advises SME’s to PLCs and he has a wealth of experience in successfully helping businesses with all aspects of employment law from the day to day to complex reorganizations, TUPE, senior executive removals and disputes through to Tribunal too. KEY AREAS OF WORK Lee has significant experience on:- Post termination and confidentiality breaches and injunctive relief work TUPE transfers and consultations; Senior executive disputes and removals Re-organizations and restructures in various sectors from healthcare, manufacturing to independent schools Agency and self-employed contracts and related claims Employment Tribunal defence and claims Lee has spoken on invitation on various aspects of employment law for various groups across the UK. Using his knowledge and experience Lee solves problems for clients and provides excellent service too. Lee also undertakes his own advocacy and delivers management training workshops and he has particular experience working with clients within the Private School, Veterinary, Care, Recruitment and Production, Logistics & Manufacturing sectors.

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