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In the new year, the government are proposing a series of new employment law changes. Here’s what you need to know and start planning for.

We are likely to see the following changes come into force on 1 January 2024 for England and Wales:

👓🌞Holiday Pay and Entitlement

Holiday pay calculations are to be streamlined by the introduction of an accrual method to calculate annual leave entitlement at 12.07% of hours worked in a pay period for irregular hours workers and part-year workers (which may include some agency workers) in the first year of employment and beyond.

All statutory leave is to be allowed to be carried over to the following year when a worker is unable to take their holiday leave in that year due to being on family-related leave or sick leave.

Clarity is to be provided on the definition of ‘normal remuneration’ for holiday pay purposes. This would include commission payments, bonuses, and other payments such as regular overtime.

👉👈Transfer of Undertakings Protection of Employment rights (TUPE)

The consultation obligations that apply when a TUPE transfer takes place are to be changed to allow all small businesses (those with fewer than 50 employees) to conduct a transfer of any size.

Businesses of any size where fewer than 10 employees are transferring to inform and consult about the transfer directly with affected employees if there are no existing employee representatives in place.

🕘Working time

It is to be made clear that businesses do not have to keep a record of workers’ daily working hours (as required by the CJEU’s ruling in CCOO v Deutsche Bank). Instead, businesses simply need to ensure adequate proportionate records in the context of their workplace and particular working patterns, provided they can demonstrate compliance with weekly working limits.

It’s worth checking your policies and procedures now to ensure these changes are mirrored and ensure that your business is protected.

If you need advice regarding this or any other HR matter, please do drop us a line at or call us on 0330 043 0897.

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