The UK Government published its roadmap for the implementation of the Employment Rights Bill in early July, prompting a collective sigh of relief, with the government laying out implementation that will span over two years, with high-impact measures such as Day 1 right to protection from unfair dismissal, and curbs on zero hours contracts scheduled for implementation in 2027.
Earlier reforms are expect in April 2026 including changes to Statutory Sick Pay (SSP) which will remove the current lower earnings limit and waiting days - meaning SSP will be paid from the first day of absence. Day 1 rights to Paternity and Parental Leave will also be introduced, alongside the launch of the new Fair Work Agency.
This agency will consolidate the powers of existing enforcement bodies while gaining new authority to investigate and enforce compliance with Holiday Pay and SSP rules. It is anticipated that the Agency will be able to inspect employer records, issue orders for underpaid statutory entitlements, and levy fines for non-compliance. So what does this mean?
With research by the TUC indicating that over 1 million employees and workers missed out on £2 billion worth of holiday pay in 2023, and the majority of these typically being in lower paid roles, it’s clear to see why a Bill that’s aimed at ‘levelling the playing field’ amongst employers, would want to address this, so what should you do now to make sure you’re paying what your staff are due?
Maintain accurate records
If the hours that your staff work vary, or they are part-year workers, this is especially important, as statutory holiday is based on a percentage calculation of 12.07% of hours worked. To demonstrate that they’re being paid, and taking what they’re due, you need to keep an accurate record of what’s been worked.
Record the holiday taken
Employees and workers in the UK are entitled to a statutory 5.6 weeks of holiday per year.
Make sure you’re recording any time off that your staff take so that you can easily demonstrate that you’re providing workers and employees with the holiday that they’re entitled to.
Keep hold of your records
It’s anticipated that the Fair Work Agency may be able to inspect up to six years’ worth of records. Even though this has not yet been legislated, it’s wise to prepare now.
