The Government has now issued guidance on Holiday pay and entitlement reforms from 1 January 2024, to accompany The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (the regulations).
The regulations provide for the 12.07% accrual rate to return for two new definitions of workers - those who are irregular-hours and part-year. The regulations came into force from 1 January 2024, but the holiday provisions do not take effect until holiday years which start after 1 April 2024.
Anthony Collins Solicitors LLP (ACS) give an overview of the Guidance and its practical implications in a new blog Holiday entitlement guidance; heavy on confusion, light on clarification!, Anna Dabek, published on 11 January 2023.
ACS comment there is a lack of clarity in the guidance on the definitions of new categories of workers, including where workers are paid by equal monthly instalments but are engaged or work part-year only, and where a worker is employed under a zero-hours contract but works regular hours during each pay period.
ACS say: “We would have hoped for more clarity in the Guidance, but we fear it may only come now through long-fought tribunal cases.”
The overview follows earlier ACS blogs and their podcast:
- The Government response is out and it looks like 12.07% is on the way back in, Hannah Bollard, blog 8 November 2023
- Sick of reading about holiday entitlement? Now you can listen instead!, Libby Hubbard, podcast 4 December 2023
- Employment review of 2023 – Anthony Collins Solicitors, blog 20 December 2023
ACS also consider other aspects of the regulations in their overview, including additional changes/confirmation of holiday entitlement, leave carry over, when leave is restricted, and week’s pay, with action points for employers. The briefing ends with a commentary on changes to TUPE information and consultation provisions.
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