The Chancellor, Rachel Reeves, led her Spring Statement in Parliament with four proud statements: inflation is down, borrowing is down, living standards are up and the economy is growing.
Among the important changes, dismissal for taking part in protected industrial action is now “automatically unfair”, removing the previous 12-week limit for claiming unfair dismissal and extending it through the whole period of industrial action.
In its election manifesto, Labour promised that it would remove the age bands on the minimum wage rates which currently see a worker aged 21 and over earning £12.21 per hour while an 18-year-old colleague is paid £10 per hour.
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Any employees with carried over leave from the Covid period will have to take their holiday by 31 March or lose it
The emergency rules on annual leave implemented in March 2020 meant that workers could carry over four weeks of holiday into the next two leave years where it was not reasonably practicable for them to take it because of the effects of Covid.
However, from 1 January 2024 these Covid holiday carry-over rules ended and employees who have any ‘Covid carry-over leave’ accrued that they have not yet taken have until 31 March 2024 to use it.
Employers should make employees aware that any Covid carry-over leave not taken by this date will be lost and encourage them to use their entitlement.
Have the rules on holiday carry over recently changed?
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The usual annual leave rules mean that almost all workers are entitled to 28 days holiday including bank holidays each year. However, most of this entitlement cannot be carried between leave years, meaning workers lose their holiday if they do not take it. There are exceptions when a worker cannot take annual leave due to sickness or maternity leave.
There is also an obligation on employers to ensure their workers take their statutory entitlement in any one year – failure to do so could result in a financial penalty.
For the purposes of annual leave, a year is the leave year as agreed in writing between the worker and their employer, usually stipulated in a worker’s contract. Although for some workers this will align with the calendar year (1 January to 31 December), it can be any year long period that is agreed upon.
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