As we dive into this crisp and cozy month of November, I'm thrilled to share some exciting updates with you all. From holiday bonuses to upcoming company events, this month's payroll newsletter is filled with good news and gratitude. Let's kick off the month with a big smile and a happy payroll update!
Under the current government, we have witnessed a significant increase in employment rates, reaching near record highs. Similarly, unemployment rates have reached near record lows. In fact, for the month of September, the number of payroll employees was 30.1 million, which is 370,000 higher compared to the same time last year, and 1.1 million higher than before the pandemic. This success can be largely attributed to the UK's flexible labour market, which allows businesses to thrive, expand, and generate job opportunities for individuals throughout the country.
On 12 May 2023, the government instigated a discussion on potential revisions to three aspects of EU employment law that have been retained after our departure from the EU. These adjustments aim to streamline processes and eliminate unnecessary red tape, thereby facilitating a more efficient workforce. The areas under review include the record-keeping obligations outlined in the Working Time Regulations, the complexities of calculating annual leave and holiday pay under the same regulations, and the consultation requirements in the Transfer of Undertakings (Protection of Employment) or 'TUPE' Regulations. Through these proposed changes, the government hopes to promote a more effective and business-friendly work environment.
So, this means that workers will be able to receive their holiday pay as part of their regular wages, rather than having to take unpaid leave when they go on holiday. This is especially beneficial for those who have irregular work hours or work part of the year, as they may not have a consistent income and cannot afford to take unpaid time off.
This change also addresses the issue of holiday pay being unfairly withheld from umbrella and agency workers, who may have been denied their rightful holiday pay due to the previous restrictions on rolled up holiday pay. This change will also help close any legal loopholes that may have allowed for the withholding of holiday pay.
Overall, this is a positive development for workers and ensures that they are able to take their entitled paid leave without facing financial strain. The government's decision to allow rolled up holiday pay for irregular hour and part-year workers is a step towards fair and equal treatment for all employees.
If anyone wishes to geek out by reading the reform the link is attached.
Catch up next time when we discuss our findings from November's budget on the 22nd November.