The Brexit Effect: good for employers, not so good for employees?

April 13, 2017

Now that Article 50 has been triggered, there will be week upon week of speculation as to what will happen to UK law post-March 2019…so we thought we would join in too! Here’s a look at one part of Employment Law – holiday pay and how things may change for the better or for the worse depending on whether you are an employer or an employee – written by HR Manager, Laura Rigby.

by Laura Rigby Brexit Employment Law Holiday Pay


I recently received my monthly CIPD ‘People Management’ magazine and whilst flicking through, an article on the impact of Brexit on holiday pay rulings caught my attention.

Could the UK’s exit from the EU prevent the requirement to include overtime and commission as part of holiday pay calculations from becoming law?

Currently, under European Directives, holiday pay must be calculated based on ‘normal’ remuneration, which is a person’s standard salary and other items of pay that they would normally receive, such as overtime and commission.

However, the decision was not a popular one amongst employers and is arguably very difficult to administer. Some experts believe that the Government will re-visit the issue post-Brexit and simplify the calculation by removing the requirement to include overtime and commission.

Although this will no doubt be welcomed by many UK employers, would this not open the door to further U-turns in relation to other statutory instruments introduced following EU Directives, such as the Working Time Directive and the 5.6 week holiday allowance per annum? To do so would undoubtedly be seen as unfair as these rulings are so ingrained in our working practices.

Whilst I cannot foresee any changes taking place in relation to these factors, current employment legislation is weighted heavily towards the protection of workers and therefore it wouldn’t surprise me if the long-term plan post-Brexit might be to lessen the strain on employers.

Leeds based HR180 is a team of superheroes in HR Outsourcing, Projects and Consultancy committed to work in partnership with organisations of all sizes to establish working policies to go above and beyond Employment Law requirements, to protect both employees and employers alike. We love to hear from you, so call us on 0113 287 8150 or hit the Rescue Me button.

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