'Still grappling' | Most employers yet to take action on holiday pay reforms

More than two thirds of employers (69%) are yet to take any action to change how holiday entitlement and pay is calculated in their organisation, more than a month after the new rules came into effect.

This is according to a new poll by employment law and HR consultancy firm, WorkNest. The amendments to the Working Time Regulations, which has the most significant impact on ‘irregular hours’ and ‘part-year’ workers, a substantial section of the UK workforce, applies in respect of annual leave years starting on or after 1 April 2024. 

According to WorkNest’s findings, four in ten employers have not taken any action because they still do not know if this affects their workers and almost a quarter (23%) say they have not made any changes and do not intend to

A big issue for employers

2024 has been a bumper year for employment law reforms so far, with a raft of legislation updates and changes coming into effect last month. WorkNest has found that along with revised rules on the right to request flexible working, it is the amendments to holiday pay and entitlement that employers say are impacting them most. At a recent webinar hosted by WorkNest about the latest legislative changes, more than half of the questions submitted were related to the new holiday pay entitlement and calculations.