The Chartered Institute of Payroll Professionals
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TUPE changes ahead Published: 9 November 2023 Emailed: 15 November 2023
Within the Department for Business and Trades (DBT’s) response to the EU Retained Law consultation was an update on changes to how we deal with TUPE for small businesses and very small transfers.
The draft regulation propose that these new rules would impact transfers taking place on or after 1 July 2024.
“ The government will proceed with the planned reforms to the TUPE consultation requirements. These reforms will allow small businesses (with fewer than 50 employees) and businesses of any size undertaking a small transfer (of fewer than 10 employees) to consult directly with their employees if there are no existing worker representatives in place. ”
These changes are permissive only, businesses will still have the choice to elect and consult with a worker representative if they would prefer to do so.
All existing protections for discrimination stay in place and so employers must still conduct individual consultations with the same care and consideration as normal.
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Holiday pay and entitlement: treatment for different situations Published: 9 November 2023 Emailed: 15 November 2023
Things are changing for irregular hours and part year workers. The Department for Business and Trade (DBT) has responded to the two consultations released this year around holiday pay. So, now that we have had some time to go through the information provided, lets understand how different scenarios should be handled and treated.
Currently the draft regulations propose changes to holiday pay calculations will come into force for leave years starting on or after 1 April 2024.
First, we need to know who these new rules relate to; part-year and irregular hours workers. The draft regulations provide us with a definition to work from;
Irregular hours worker In relation to a leave year, if the number of paid hours that they will work in each pay period during the term of their contract in that year is, under the terms of their contract, wholly or mostly variable. Part-year worker In relation to a leave year, if, under the terms of their contract, they are required to work only part of that year and there are periods within that year (during the term of the contract) of at least a week which they are not required to work and for which they are not paid.
The changes will allow an accrual calculation to be used for entitlement of 12.07%, rather than a 52-week reference period, but only for irregular hours and part-year workers.
Additional, for those same worker groups, employers will have the option to use rolled-up holiday pay (RHP). This is a method of paying holiday pay as an uplift to remuneration as and when it is earned. Please note this does not absolve employers of their duty to ensure employees have adequate rest and use their entitlement earned. It instead means that holiday pay is given separately to exercising the entitlement.
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