The new laws clarify that paying rolled-up holiday pay at 12.07 per cent is lawful for such workers, superseding a recent Supreme Court ruling that stopped the practice.
They also confirm that it is still lawful (despite previous doubts arising from the UK’s departure from the EU) for workers to carry all statutory annual leave to the following year if they are unable to take their leave in a year because they are on family-related leave.
They also clarify that it is lawful for such workers to carry their four weeks per year annual leave forward for up to 18 months if they have been unable to take such leave because of sickness. This also applies where their employer has either not given them the opportunity to take the leave or has not told them that any such leave not taken, and which cannot be carried over, will be lost.
The new rules also define ‘normal remuneration’, which removes any previous doubt that it includes commission, regular overtime, and other payments.
The requirement for employers to keep a record of every hour worked and every rest period is removed.
Operative date
- 1 January 2024
Recommendation
- Employers should check out the proposed new laws and change their policies, procedures and budgets to take them into account.
This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.