In this month's instalment, our team highlight key updates to ACAS guidance on employee holiday entitlement and sickness absence, and artificial intelligence in the workplace. We also explore a recent Employment Appeal Tribunal case relating to the extension of an employee's termination date and the Court of Session’s findings that a share incentive plan transferred under TUPE.

1. ACAS Guidance

ACAS have published new and updated guidance for employers and employees on holiday entitlement and sickness absence.

Holiday entitlement:

• Full time employees are entitled to 5.6 weeks' holiday pay, which can include bank holidays.
• If an employee works part-time, the holiday pay entitlement is calculated in proportion to the hours worked.
• Shift, term-time and zero-hours workers are also entitled to 5.6 weeks’ holiday pay provided they have an ongoing employment contract. The holiday pay entitlement should not be affected by how many weeks the worker works in a year. This is because the employment contract is in place for the whole year.
• If an employee has a fixed-term contract, the holiday pay entitlement is calculated in relation to the length of the employment contract rather than the hours worked.

Sick pay entitlement:

• It is important for an employment contract to outline:
  • How much sick pay is.
  • How long sick pay will last.
  • Any rules an employer has for using sick pay.
• An employer must pay statutory sick pay for an eligible employee.
• Where an employer has a...

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