The Employment Rights Bill 2024 (ERB) will create a new State Enforcement Agency covering a wide range of employment rights. It will take over enforcement of National Minimum Wage (NMW) from HMRC, and will also cover statutory sick pay, modern slavery and holiday pay.
Much of the discussion about the Fair Work Agency (FWA) has focussed on the fact that it will take on enforcement of holiday pay. That is important, but we also anticipate a major refocus on NMW compliance from April 2026.
Let’s start with holiday pay. This change is very big news because enforcement of holiday pay has historically only taken place in one of two limited ways. Either following the issue being raised by a recognised trade union. Or by individual claims being brought to the Employment Tribunal by employees who feel they have been underpaid. Such claims have been relatively rare outside of unionised workforces (where unions have, in general, sponsored them) because holiday pay calculations are notoriously complex. As a result, employees do not always spot underpayments even when they exist. For individuals in non-unionised businesses, the many and complex holiday pay rules have to date had limited teeth. That is about to change and it's clear that this has the potential to impact a significant range of employers very significantly.
Not only will the new FWA enforce holiday pay compliance regardless of whether...
word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word word w...