Changes to Holiday Pay and Other Payroll Administration Matters
We are pleased to advise that the Government has announced changes to Holiday Pay, Working Time Regulations and TUPE (Transfer of Undertakings Protection of Employment) Rights.
For once, the changes can be regarded as beneficial for small and medium size businesses.
The calculation of Holiday Pay for part-year workers and those who have irregular hours can be calculated at 12.07% of hours worked each pay period and paying this each pay period (… Holiday Pay) will be allowed, simplifying the process.
Holiday Pay must be based on their normal pay and should include commission, overtime, on-call and other regular payments.
The changes to Working Time Regulations reduce the onerous detail of keeping records of all employees’ hours of work.
The simplification of TUPE Regulation will allow employers undertaking some small transfers to consult directly with staff involved.
As regulations relating to payroll have been getting ever more complicated over the past few years, these developments are to be welcome.
There is no need to make any changes yet but these draft regulations are expected to come into effect on 1st January 2024 and Holiday Pay provisions will apply to holiday years commencing on or after 1 April 2024.
