The Government has been reviewing the controversial Retained EU Law (Revocation and Reform) Bill that would reform or scrap thousands of laws carried over when the UK left the EU by the end of 2023. So we have put together a summary of the key employment law updates we expect to see.
Rolled up holiday pay
Following the Harpur Trust case outcome in 2022, the Tribunal ruled that using the 12.07% calculation for rolled up holiday pay for casual or irregular hours workers was unlawful. The case means that employers now have to give all workers 5.6 weeks of holiday regardless of the hours they work throughout the year and pay them an average of their pay over the previous 52 weeks.
The government consultation on the case has not yet completed, but we suspect the government will allow the 12.07% method to make rolled up holiday pay easier for employers.
Holiday entitlements
Holiday entitlements are currently split into 4 weeks (minimum statutory holiday under EU Working Time Directive) and 1.6 weeks (UK public holidays). The government plans to merge the two into one pot of statutory leave.
Record keeping requirements
The current Working Time Regulations require employers to keep adequate records of maximum daily/weekly working time as well as information for night workers and young workers. The government proposes to remove this requirement, making record keeping easier for employers.
TUPE
Currently, employers must collectively consult with employees affected by a TUPE transfer via elected or union reps (unless the business employs 10 people or less). The government plans to remove the requirement to consult with elected reps for businesses with fewer than 50 people and transfers affecting less than 10 employees. This will reduce the need for many SMEs to elect representatives in TUPE situations, but they will have to do more individual consultations.
Restriction of non-compete clauses
Currently, there are no employment laws relating to the restriction or enforceability. The government also plans to implement a new law to limit the length of a non-compete clause to 3 months. This will not impact non-solicitation or confidentiality clauses.