Latest News on Changes to Our Holiday Pay Laws

The Government has announced plans to replace the Holidays Act 2003 with a new Employment Leave Act. The goal is to give both employers and employees more confidence and certainty with straightforward rules they can understand and apply.

So, what’s changing?
Some of the key proposals include:

• Switching to hours-based accrual for annual and sick leave
• Introducing a clearer test for public holiday entitlements

The good news? There’s no need to panic.
The proposed changes haven’t been passed into law yet. And once it does, there’ll be a 24-month transition period before it comes into effect. That gives plenty of time for payroll providers and employers to make any necessary updates.

For now, there’s no rush…
But it’s worth keeping two things in mind:

• Check that your payroll software provider will be updating their system
• Make sure your employment agreements can be easily updated when the time comes

We’ll be sharing updates and practical advice through a dedicated Holidays Act Updates newsletter as the new law takes shape — so there’ll be plenty of time to get ready.

To sign up for this newsletter, or if you have any questions, please send us an email to [email protected]

You can also read the official Government announcement here.