Government Announces Changes to Holiday Pay, TUPE and Working Time Regulations

November 14, 2023

At last, good news for small and medium sized businesses. The Government has announced changes to holiday pay, TUPE and Working Time Regulations.

You do not need to change the way you pay staff yet, as the draft regulations are expected to come into effect on 1st January 2024. Holiday pay provisions will apply to holiday years commencing on or after 1 April 2024.

What has changed?
Following the consultation – which The HR Dept contributed to – holiday pay for part year workers and those who have irregular hours can be calculated at 12.07% of hours worked each pay period. Paying this each pay period (rolled up holiday pay) will once again be allowed, simplifying the process. Holiday pay must be based on their normal pay and should include commission, overtime, on-call and other regular payments.

The changes to Working Time Regulations, which reduce the burden of keeping records of all an employees’ hours of work will also be welcomed by everyone.

Another welcome change is the simplifying of TUPE regulations, allowing employers undertaking small transfers to consult directly with the staff involved.

How can The HR Dept help?
Please get in touch if you would like any further information on how these changes could impact your business.