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Sunday, September 13, 2026

New law: Government proposes employment law | Legal Alert - economia

Employers are considering the impact of proposed changes to employment law in a new government policy paper, as part of the government’s larger review of EU-derived laws in the UK.

Proposals in the consultation on retained EU employment law reforms include the following:

  • Merger of the four-weeks’ holiday entitlement derived from EU law with the 1.6 weeks’ holiday entitlement under domestic law. This is to create a single leave entitlement with one set of rules. The consultation also asks for views on how holiday pay should be defined and calculated, including in a worker’s first year, and could theoretically result in commission or overtime being excluded.
  • Introducing ‘rolled-up’ holiday pay - where an employee does not get holiday pay during a holiday because it is already included in their hourly pay rate – because, for example, they are an agency worker or on a zero-hours contract. This is currently unlawful, but the proposal is to include this as an additional option when calculating workers’ holiday pay.
  • Abolishing the legal requirement for employers to record all individuals’ working hours, including overtime.

The consultation also proposes changes to the protections for employees that apply on, for example, transfer of a business to a new owner or of a service to a new provider, under what lawyers call the TUPE rules. Currently, an employer must consult collectively with elected representatives in advance of such a transfer – they cannot consult directly with...



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