You will remember that back in April, we had significant employment law developments, particularly regarding how to calculate holiday entitlement and pay for irregular hours workers or part-year employees.
When the changes came into force, the Government introduced them to allow employers to transition smoothly to the new rules. For those whose holiday year ran from 1 April to 30 March, the new rules were applied immediately upon the legislation taking effect.
However, employers who were partway through a holiday year at the time of the change needed to wait to implement the new rules. This approach ensured the changes could be introduced at the start of a holiday year, making them easier to manage.
With the end of the year in sight, many employers are now preparing to start a new holiday year (most likely in January). This means the legal changes introduced back in April must now be implemented for the new holiday year. For businesses with workers on irregular hours or part-year contracts, it is essential to take the following steps:
- Update Key Documents: Ensure your employee handbook, template contract of employment, worker agreement, and annual leave policy are updated to reflect the new rules. These updates must be in place from the start of the next holiday year to ensure compliance with the law.
- Prepare for New Recruits: If you are currently recruiting and expect start dates in the new holiday year, ensure the updated contracts of employment or worker agreements are used during the onboarding process.
- Consult with Existing Employees: The changes to holiday entitlement and pay for irregular hours workers are contractual. Employers are legally required to consult with employees and provide appropriate notice before introducing these changes.
We’re here to help
Navigating changes to holiday entitlement and pay for irregular hours workers can be complex, but we’re here to support you every step of the way. From updating policies to managing contractual changes, our resources and expertise are designed to help you stay compliant and ensure a smooth transition.
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