Holiday pay for part year workers and workers on irregular hours
Effective Date: 1 April
Rolled up holiday pay was abolished in 1998 but it is back further to a Supreme Court’s 2022 decision.
It’s holiday entitlement for irregular hours and part year workers ONLY.
The changes relating to irregular hours and part-year workers will apply to holiday years beginning on or after 1 April 2024. For holiday years beginning on or after 1 April 2024, holiday entitlement will be calculated using an accrual method throughout the holiday year. Entitlement will accrue at 12.07% of hours worked in a pay period, rounded to the nearest hour.
For example, if a monthly paid worker works 100 hours in a month, they will have accrued 12 hours of annual leave.
Employers that designate periods when these workers must take their annual leave can continue to do so. It is open to employers to allow workers to take leave before it has been accrued.
It will not be compulsory for employers to implement rolled-up holiday pay, but they can choose to do so. If an employer does choose to use rolled-up holiday pay, it must calculate it at 12.07% of the worker’s earnings during the pay period. It must be paid at the same time as pay for work done (not when the leave is taken) and the worker’s pay statement must itemise how much holiday pay they have been paid for the period.
If you have a casual/zero hours contract, you can amend this. Please contact us or the wording or to discuss.
Carers Leave Act 2023
Effective Date: 6 April 2024
This will give one week of unpaid leave per year to employees who are providing or arranging care for a dependent, with long-term mental or physical health needs.
It will be possible to take the leave in periods of a day or half a day. Carer’s leave will be a “day one” right.
You will need a new policy explaining the right of the employees to carer’s leave and you’ll need template letters for processing requests.
Flexible Working
Effective Date: 6 April 2024
The Employment Relations (Flexible Working) will change the rules on statutory flexible working requests, including removing the current requirement for employees to have at least 26 weeks’ continuous service to make a flexible working application (it becomes a day one right).
Employees will be allowed to make two requests in a 12-month period and the time within which the employer must notify the employee of its decision is reduced to two months including allowing for an appeal in this period.
Employers must consult an employee before refusing a request. Employees will not need to explain the effect of the proposed change or how that could be dealt with when making a request.
You will need to update your existing flexible working policy and template letters.
Paternity Leave
Effective Date: 6 April 2024
The new rights for employees include:
- An ability to split the two weeks of Statutory Paternity Leave into two separate week-long blocks should they wish.
- The ability to take such leave at any point in the 52 weeks following birth or placement for adoption (instead of in the first 56 days after birth).
- A reduced notice period for such leave. Reducing from 15 weeks before the Expected Week of Childbirth to 28 days before each intended period of leave. For adoption, a seven-day notice period prior to the expected placement date, remains.
- Allowing 28 days’ notice for a variation of any dates previously given as leave dates.
The regulations come into force on 8 March 2024 for children born or placed from 6 April 2024 onward.
Extended Redundancy Protection across maternity, adoption leave and shared parental leave
Effective Date: 6 April 2024
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 is expected to come into force on this date.
The proposed regulations mean that there would be an extension of redundancy protection during pregnancy, and for 18 months after the birth or placement of a child. This applies to those on maternity, adoption or shared parental leave.
Qualifying persons will have priority status for redeployment in a redundancy situation.
Employees on maternity leave already have the right to be offered any suitable alternative vacancy in a redundancy situation.