Kate Palka, employment and commercial solicitor from The Legal Director, talks us through current and future employment law changes

Employment law develops rapidly to reflect Government priorities and tribunal activity, but employers are currently experiencing an increasing number of employment law changes and challenges impacting their businesses.

Here are some of the more significant issues that you and your teams should be aware of, both current and future.

Holiday pay

Harpur Trust v Brazel clarified the position on how holiday pay for irregular workers on permanent contracts should be calculated. The change only impacts workers with no normal working hours and who are paid on an hourly or daily basis.

So, what does this mean? Basically, employers can no longer calculate holiday pay for workers with irregular working patterns using the 12.07 per cent method.

For permanent workers with irregular hours, you must calculate holiday pay by looking at the work they have undertaken across a 52-week reference period, discounting the weeks in which they did not receive any pay. You then need to calculate their average week’s pay across the 52-week period and multiply it by the 5.6 weeks’ annual leave entitlement.

It is worth reviewing your current holiday practices to ensure they comply with the judgment. You may also need to amend contracts of employment and payroll processes.

Employment status

The Government has currently decided not to legislate on employment status but...

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