GLOBAL PAYROLL MAGAZINE
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things, this could include commission and regular overtime.
The key updates for employers to consider when reflecting on their policies are: Annual leave: Introduction which permits workers to carry over entitlements if they are unable to take it due to family leave, sick leave, or failure of an employer to provide reasonable opportunity to take it.
A definition of ‘normal remuneration’ and when it is payable.
Adjustments for irregular hours and part-year workers: Introduction of a pro-rata method of calculating annual leave entitlements, calculated at 12.07% of the hours worked in the previous pay period and an introduction of rolled-up holiday pay, which means that employers will pay workers an additional sum on top of their hourly rate of pay whereby the additional sum represents their holiday pay. Employers who wish to change their method of calculating holiday pay will need to check the employment contracts permit this first. Also of interest, are new regulations extending redundancy protection for pregnant employees and new parents. This is an extension of the right to be offered suitable alternative vacancies in a redundancy situation so that it will apply during pregnancy and for a period post family leave (i.e. maternity, adoption or shared parental leave) which is expected to be for six months.
requirements and how an employer should respond to leave requests will be important. Amendments to the Working Time Regulations 1998 (“WTR”) From 1 January 2024, the WTR was amended to replicate the effect of EU- derived case law regarding the carry- over of holiday in certain situations including (among other things) the inability to take holiday as a result of sickness or family leave. Also, it was amended to incorporate the concept that “normal remuneration” for the purposes of paying holiday pay should include basic pay and the payments intrinsically linked to the contract which are normally paid, among other
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