A number of employment law changes to holiday entitlement and pay are due to come into law, especially for employees with irregular hours and part-year workers.
The measures are included in the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, which came into effect on 1st January 2024.
The changes relating to irregular hours and part-year workers will apply to holiday years beginning on or after 1st April 2024.
1. Holiday entitlement for irregular hours workers and part-year workers will accrue at 12.07% of hours.
We already do this at Glen Group
2. Rolled-up holiday pay will be allowed for irregular hours and part-year workers
Rolled-up holiday means paying an additional amount for holiday pay along with basic pay, instead of making a payment at the time holiday is taken. We currently do this at Glen and pay at the same time the work is done
3. Workers on family-related leave must be allowed to carry over holiday
You will be allowed to carry holiday forward into the next holiday year if they have not taken it because they were on maternity leave, adoption leave, shared parental leave, ordinary parental leave, paternity leave or parental bereavement leave. We currently do this at Glen
4. Workers on long-term sick leave must be allowed to carry over holiday
To avoid a long-term sick employee accruing large amounts of holiday to be taken on their return from sickness absence or paid in lieu at the end of their employment, the new law states that the carried forward holiday entitlement must be taken within 18 months of the end of the holiday year in which it accrued. This applies only to the carry-over of four weeks' annual leave entitlement derived from EU law. We don’t do this and will ensure that this now happens.
5. Workers who have not had a reasonable opportunity to take holiday must be allowed to carry it over
We will encourage you to take your full holiday entitlement. But you will be entitled to carry over untaken annual leave if we have not given you a reasonable opportunity to take the leave and encouraged you to do so.
6. Normal pay for the purposes of calculating holiday pay includes overtime and commission
"normal" rate of pay for the purposes of calculating holiday pay will now include regularly paid overtime in the 52 weeks preceding the calculation date.
If you have any questions, please contact us at employeesupport@glengroupltd.com