The Government has proposed significant reform of key aspects of UK employment law.

In the “Smarter regulation to grow the economy” policy paper (the “Paper”) published last week, the Government identified an opportunity to improve post-Brexit employment regulation whilst maintaining UK labour standards, which it states are some of the highest in the world.

The “Retained EU employment law reforms” consultation paper has now been published. It contains the reform proposals in relation to the Working Time Regulations 1998 (“WTR”) and the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE Regulations”) summarised below.

The Government has identified these areas as being too onerous on business to be used effectively, or too complex for workers to know, understand and use.

Working time reform proposals

• A proposal to merge the current “basic” statutory annual leave entitlement of 4 weeks (derived from EU law) with the “additional” UK entitlement of 1.6 weeks, to create one annual leave entitlement of 5.6 weeks. This means there would be only one set of rules under the WTR including in relation to the calculation of holiday pay, carry-over of holiday, and calculating holiday during the first year of employment. The aim is to remove the administrative burden and complications for employers of distinguishing between two annual leave entitlements.

• The introduction of rolled-up holiday pay (which is currently illegal following EU caselaw). This reflects...

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