Changes announced to holiday pay and TUPE after Brexit law reversal

May 23, 2023

By Owen John

Following the UK Government’s reversal of its approach to EU laws post-Brexit, important changes have been proposed to the rules on calculating holiday pay, TUPE, and non-compete restrictions on former employees.

What’s the background to this?

The Government announced in a statement on 10th May that instead of scrapping all regulations which came from EU law (which was planned to happen on 31st December 2023), it will take the opposite approach by keeping all of these regulations in force until it has time to review them. At the same time, it has launched a consultation on reforming some of the least popular of those EU laws.

What are the planned changes?

The biggest changes proposed are:

  • Holiday pay: This is a hugely complex area which has been made more complicated in the last few years by case law coming out of both the EU and UK courts. It’s now proposed to simplify this by using a single rate of pay to calculate workers’ holiday pay, and also to allow “rolled-up holiday pay” for workers who work sporadically, such as casual workers.
  • TUPE: The new proposal is that smaller businesses, meaning those with less than 50 employees, will be exempt from onerous rules requiring collective employee consultation when a small TUPE transfer takes place.
  • Non-compete clauses: Changes are planned to limit the length of some types of restrictive covenants (those which prevent employees from moving straight to a competitor of their employer) to 3 months after the termination of employment. The intention of this is to keep the workforce moving and prevent employees from being restricted from moving between jobs within their sector.

When might this happen and what will the effects be?

Although these changes aren’t likely to be implemented until 2024, they will have a significant impact. The changes to holiday in particular will be welcomed by many employers who have wrestled with this issue over the last few years, while the changes to non-compete clauses may be more controversial.

Watch this space for news on how these changes develop, and please get in touch with Owen John on or 02920 829 118 if you need advice on the law in these areas.

Contact Our Team
Bríd Price
View Profile
Damian Phillips
View Profile
Fflur Jones
Managing Partner
View Profile
Fiona Sinclair
HR Consultant
View Profile
Heledd Evans
Trainee Solicitor
View Profile
Nicole Brendel
View Profile
Owen John
View Profile
Rachel Ford-Evans
Senior Associate
View Profile
Seren Trigg
HR Consultant
View Profile

I have worked with Darwin Gray for a number of years and the level of service, professionalism and timely response is second to none. I would highly recommend Darwin Gray to any business.”

Becs Beslee, Dice FM Ltd

Darwin Gray have provided us with a first-class service for many years now. They really take the time to understand our business and develop relationships which results in advice and support that is contextualised and effective.”

Rebecca Cooper, ACT Training

We have worked with Darwin Gray for several years and have always found their services and advice to be first class.”

Karen Gale, Stepping Stones Group

An extremely professional and sincere company who make time for your queries and understand the need to break down certain facts and information to ensure everything is understood perfectly. I would highly recommend the company to anyone looking for any type of legal advice”

Gwawr Booth, Portal Training Ltd

PSS has worked with Darwin Gray for many years. We have always received an excellent service. Prompt and professional advice and support.”

Ledia Shabani, Property Support Services UK Ltd

We have used several departments within DG recently and we have been very pleased with an effective, efficient and down to earth service. Very happy thus far and I expect that we will continue to use DG.”

Guto Bebb, Farmers’ Union of Wales

Darwin Gray offer us truly superb services. Very professional, quick and services available bilingually which is very important to us, highly recommend.”

Iwan Hywel, Mentrau Iaith Cymru

My “go to” in urgent and time sensitive cases for direction, support and advice. The team are quick to respond to calls or emails for advice and support on all matters. Always explain complex matters in a way a lay person can easily understand.”

Margot Adams, Guarding UK Ltd