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Government publishes response to consultation on reforms to retained EU employment law

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 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).

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