The Government has released a response to the consultation on reforms to retained EU employment law and the consultation on calculating holiday entitlement for part-year and irregular hours workers.
The decision in Harpur Trust v Brazel meant that irregular hour’s workers and part-year workers got 5.6 weeks’ annual leave and pay per leave year even if they only worked a small number of hours in the year.
The Government will now introduce legislation allowing for the 12.07% method of calculating holiday accrual to be used for irregular hours workers and those who work for part of the year. This will be based on the number of hours worked in the pay period, e.g. weekly, monthly or even daily. Agency workers who work for part of the year or have irregular hours will also be able to have their holiday accrual calculated in this way.
There will be an introduction of “rolled-up” holiday pay, which enables workers who work irregular hours or part time hours to receive enhancements to their regular pay (instead of being paid when they take the leave).
There will not be an introduction of a single annual leave entitlement (i.e. incorporating both the 4 weeks basic annual leave and the 1.6 weeks additional leave together). This means that workers will continue to receive 4 weeks at the normal rate of pay and 1.6 weeks at the basic rate of pay.
In relation to TUPE transfers, businesses with fewer than 50 employees will be permitted to consult directly with employees (rather than needing to appoint employee representatives with whom to consult).
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.