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Retained EU employment law reforms

Date 7 Apr 2026
Category HR
Service Area Contracts of Employment and Terms & Conditions, Recruitment & Induction

Audience

Schools, academies and trusts

Action Required

Familiarise yourself with the reforms ready to proactively implement when needed, and review policies and other relevant documentation where necessary

EPM Support

Please contact your EPM Adviser for further details.

Summary

Recent updates from the Government have outlined legislation due to come into effect on 1 January 2024.

Retained EU Employment Law and the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023

The Government has published both their response to the consultation on Retained EU Employment Law, and the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023. The legislation is due to come into force on 1 January 2024 with key highlights including:
  • No single entitlement of 5.6 weeks annual holiday entitlement. Instead, regulations 13 and 13a which determine the rate of pay for annual leave at 4 weeks normal pay and 1.6 weeks at basic pay, have been retained.
  • Introduction of Rolled Up Pay (RHP) for “irregular hours workers and part-year workers” (applies to holiday year commencing on or after 1 April 2024).
  • Accrual of holiday entitlement for “irregular hours workers and part-year workers” introduced at 12.07% of hours worked in a pay period (applies to holiday year commencing on or after April 2024).
  • A three-step process for calculating holiday entitlement in cases where a worker is on other leave such as sick leave, using a 52-week reference period.
  • Increased flexibility to consult directly on TUPE - where there are no existing representatives in place - in schools and MATs who have fewer than 50 employees or where fewer than 10 employees are involved in the transfer.
  • A repeal of COVID carry-over holiday entitlement rules, such that relevant accrued holiday must be used up by 31 March 2024.
  • Clarification on record-keeping for employers to ensure that it is “adequate” to demonstrate compliance with the Working Time Regulations.

What support will EPM provide?

There is no need to currently make any changes, however by familiarising yourself with the reforms, particularly those which relate to a change to the current position, you can be ready to proactively implement. EPM will monitor the situation closely and keep you updated and informed in respect of changes we will make in how this is managed through the payroll and any action you are required to take.

Amending the Equality Act 2010

Further draft legislation has also been published by the government to amend the Equality Act 2010 with effect from 1 January 2024, in the form of a statutory instrument to ensure that the law will continue to offer the same equality protection after the end of 2023. This is because some interpretive elements were derived from EU discrimination protections and would otherwise have disappeared at the end of 2023 due to Brexit. Specifically, the following elements will be retained:
  • Special treatment can be afforded to women in connection with pregnancy, childbirth, or maternity. They also have protection from unfavourable treatment in connection with the pregnancy following a return from maternity leave, and against pregnancy and maternity discrimination in the workplace.
  • Less favourable treatment on grounds of breastfeeding constitutes direct discrimination on grounds of sex.
  • An individual may make a claim of indirect discrimination (where that individual does not have a protected characteristic themselves but suffers a disadvantage arising from a discriminatory provision).
  • Employers may be liable for conduct equivalent to direct discrimination if a discriminatory statement is made regarding recruitment, even when there is not an active recruitment process underway.
  • An employee can make an equal pay claim by drawing a comparison with another employee where their terms are set or maintained by a single body (e.g. employer or collective agreement) with the ability to restore equal treatment.
  • The definition of disability must be understood as specifically covering a person’s ability to participate in working life on an equal basis with other workers.

What support will EPM provide?

Since this legislation relates to the maintenance of a statutory position, you do not need to take any action in respect of the above reforms. You may wish, however, to review policies and other relevant documentation to ensure that you are operating in line with best practice and the legal position. EPM model documents are kept under regular review to take the hard work out of your review process - please visit our website for the most up-to-date advice, guidance and model policies. For further details on the outcomes and reforms, speak to your EPM Adviser and sign up for future live updates.

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