Proposed Changes to the Working Time Regulations, TUPE and Non-compete clauses

Now that the UK has left the EU, the UK Government is undertaking an ongoing review into existing employment regulations with a view to revoking or reforming those provisions which it considers are no longer fit-for-purpose.

As a result of this review the Government intends to consult on a series of employment law reforms, which are intended to grow the economy and cut costs for businesses.

Working Time Regulations

The Government is proposing amendments to the Working Time Regulations which would:

  • Replace the separate ‘normal’ holiday and ‘additional’ holiday provisions with a single entitlement of 5.6 weeks. This could have implications in terms of calculating holiday pay and remove the requirement to include commission, overtime etc. which is only strictly applicable to the 4 weeks statutory leave derived from the Working Time Directive.
  • Allow rolled-up holiday pay which is unlawful under current provisions.
  • Remove the record keeping requirements for working hours.

Transfer of Undertakings (Protection of Employment) Regulations (TUPE)

Currently, there is a requirement to inform and consult appointed representatives in relation to a TUPE transfer. The Government’s proposals would remove that requirement for organisations with fewer than 50 people and where the transfer affects fewer than 10 employees. In these circumstances direct engagement with staff affected would be allowed.

Non-compete clauses

The Government intends to limit the length of non-compete clauses to 3 months. The Government claims this will give up to 5 million UK workers more flexibility.

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