In this month’s instalment, our team highlights the UK’s plans to reform employment law in a post-Brexit world, with a focus on what it might mean for employers and UK employment law. We also discuss new employment protections for parents and unpaid carers.
Employment reforms in a post-Brexit world
The Government has announced a number of employment law measures following its departure from the EU in a policy paper "Smarter Regulation to Grow the Economy". These measures are summarised as follows but will require legislation to be enacted into UK law:
- Rolled up holiday pay to be allowed
To reduce the administrative burden and complexity of calculating holiday pay, the government has proposed to introduce and allow rolled up holiday pay, the practice of paying workers an additional sum each month to represent holiday pay, typically 12.07% of salary. This practice is unlawful under EU law. If applicable law is passed and employers start paying rolled-up holiday pay, they should inform workers and ensure the payment is clearly marked as holiday pay on payslips. It is envisaged that this change simplifies calculating holiday pay for casual and temporary workers.
- Holiday entitlements
Currently, employees have two separate holiday entitlements - four weeks’ leave based on EU law and an additional 1.6 weeks from the UK. The government plans to merge these entitlements into one type of statutory annual leave. That will ensure that both types of leave are treated consistently...
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