On 10 May 2023, the government made a number of announcements relating to Brexit and a number of these related to UK employment law. Below we provide a brief summary of the key proposals and which laws they will affect:
Working Time Regulations
The Government intends to remove retained EU case law that imposes record keeping for working hours under the Working Time Regulations. The Government alleges that this will reduce the burden on businesses.
The government has also announced that it will change the way in which holiday pay is calculated and is planning to merge normal holiday pay with additional holiday pay to create one entitlement. Further to this it will allow “rolled-up” holiday pay which allows workers to receive their holiday pay in every payslip.
The Transfer of Undertakings (Protection of Employment) (“TUPE”) Regulations protect employees when the business or organisation that they work for transfers to a new owner.
Currently, businesses cannot consult employees directly where they do not have employee representatives in place. Instead, currently they must elect new employee representatives. The government plans would remove this requirement for businesses with fewer than 50 people and where a transfer affects less than 10 employees, allowing businesses to consult directly with the affected employees.
Non-compete clauses can be included in employment contracts to restrict an individual’s ability to work for or establish a competing business after they leave employment. This to protect businesses who invest in their staff, however the government feel that “unnecessarily burdensome clauses have become a default part of too many employment contracts, including where they fulfil no purpose”.
The government in its proposals intends to limit the length of non-compete clauses to 3 months, which is thought will allow employees more freedom to join competitors/ start up a rival business when leaving their employment.
The government however has no plans to change employers’ ability to use notice periods, garden leave or non-solicitation clauses and it is thought that these offer enough protection to businesses.
If you have any concerns or questions about the government’s proposals and its affect on you or your business, please contact us on firstname.lastname@example.org to arrange an appointment to discuss these with our team.
For advice on how this may impact your business and what you may need to do going forward, please get in touch with one of our specialist team today.
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