CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

The CIPP held a think tank with the OTS and our members to get their feedback. This evidence was greatly appreciated and provided the OTS with qualitative views on the current systems and how they could be changed. We open up think tanks to full, chartered and fellow members, keep an eye out for emails about future events with government agencies and have your say on key issues.

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Is it all change for holiday? Published: 13 January 2023 Emailed: 18 January 2023

On 12 January 2023, The Department for Business, Energy & Industrial Strategy (BEIS) opened a consultation* on the calculation of holiday entitlement received by part-year and irregular hours workers, following the recent Supreme Court judgment in Harpur Trust v Brazel.

In the consultation BEIS proposes to introduce a holiday entitlement reference period for part-year and irregular hours workers, to ensure their holiday pay and entitlement is directly proportionate to the time they spend working.

BEIS also wants to understand how entitlement is currently calculated for agency workers and how the consultation proposal might be implemented.

*As consultations are subject to change, this consultation does not affect the current requirements for calculating part- time or irregular-hour workers' annual leave entitlement. In all cases, employers must ensure workers receive 5.6 weeks annual leave entitlement and pay.

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Casual worker holiday – what now? Published: 16 January 2023 Emailed: 18 January 2023

With the latest consultation released regarding holiday pay, some of you may be wondering where we currently stand with the legislation.

If you haven’t heard, the Department for Business, Energy, and Industrial Strategy (BEIS) is seeking views on potential changes to holiday entitlement calculations. This is in relation to part year or irregular hours workers as a result of the Harpur Trust v Brazel Supreme Court verdict. The consultation proposes a 52 week reference period, similar to how holiday pay is calculated, to assess entitlement to the amount of leave. This aims to simplify holiday pay calculations and make the entitlement to leave proportionate to the amount of the year worked. B ut, and it’s a big one, the clarification of the law as provided by the Supreme Court is what is considered compliant right now. We don’t know yet when the new law will be passed, if changes will be made, or if there will be any retrospective provisions included. Therefore, right now businesses should be making steps to be compliant with the law as it stands and ensure part year workers entitlements are not pro-rated. With the changes proposed, and the implications of Harpur Trust v Brazel, weekly payroll data will be a key principle of the information required. If you are not currently capturing this data, for the current legislation as well as the proposed changes, we encourage you to review processes and seek to make positive changes. Keep an eye out for our survey releasing soon to allow you to provide feedback on any part of the consultation. This will feed into our response to BEIS as a representative of the payroll profession and our members. Unfortunately, all our think tanks are currently full, if we have capacity to add any further dates we will announce those as soon as we are able to, thank you all who have registered interest.

The consultation closes on 9 March 2023.

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