On 10 May 2023, the government announced its policy to reform employment law as part of its strategy to grow the economy. This is largely driven by the 'Brexit freedoms' agenda, as enshrined in the Retained EU Law (Revocation and Reform) Bill, but independent of that, the government has stated all domestic laws which create an unnecessary burden on business will be reviewed and reformed where necessary. In general, there will be a move away from reliance on regulation in favour of guidance. Guidance is seen as more nimble and capable of being adapted to changing business needs.

Working Time

The government has stated that it will:

• Remove the burdensome requirement on business to record working time for almost all employees. This will involve legislating to override the effect of EU case law, which creates this obligation.
• Remove the distinction between 4 weeks' annual leave (known as 'WTR' leave), and 1.6 weeks' leave, (known as 'additional leave'). This will be consolidated into one 'statutory pot'. This change will be more than notional. Although the government has not explicitly said so, the government is likely to use this as the starting point for revisiting what counts as pay for holiday pay purposes. In particular the EU case law which requires commission, bonus, and other payments normally received to be included in WTR leave, may well be overhauled.
• Allow for rolled-up holiday pay. This would mean employees receiving holiday pay in each monthly payslip,...

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