UK Employment Legislation Changes 2024
Businesses in the UK will need to be ready to implement these new regulations for their employees in 2024
In this article, we will delve into the UK Employment Legislation changes 2024. Let’s understand the key updates and amendments in labor laws that are expected to impact employers across various sectors. From new employee rights being introduced from April 6th to updates in compliance requirements, we provide insights to help employers understand and prepare for the changes ahead. Join us as we explore what employers need to know to stay compliant and adapt to the evolving regulatory environment in the UK.
Changes emphasizing family welfare related provision
Changes to Paternity Leave
The Paternity Leave (Amendment) Regulations 2024 provides for changes to statutory paternity leave which will become effective form 8th March 2024 in England, Wales and Scotland. Employees anticipating the arrival of a child on or after April 6, 2024, either through childbirth or adoption placement, will now have the flexibility to avail their paternity leave in two distinct one-week intervals, eliminating the previous requirement of taking the leave consecutively.
Under the revised policy, employees have the right to utilize their paternity leave at any point within 52 weeks following the birth or adoption, deviating from the prior norm of 56 days post-birth. Additionally, the notice period for expressing the intention to take paternity leave has been streamlined to 28 days, a reduction from the previous requirement of 15 weeks before childbirth.
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023
Effective April 6, 2024, this Act extends legal safeguards for pregnant employees and those on maternity/adoption/shared parental leave facing redundancy. Under current laws, individuals on maternity leave, shared parental leave, or adoption leave already benefit from special safeguards during redundancy situations.
They possess the right to be offered a suitable alternative role before facing redundancy, granting them priority for redeployment opportunities compared to other redundant employees.
The extended protection now includes pregnant employees and individuals returning from maternity, adoption, or shared parental leave
Pregnancy/maternity leave: Employees will receive protection commencing from the moment they disclose their pregnancy to their employer and extending into an additional safeguarded duration after their return to work following statutory maternity leave. This protection period starts from the from the first day of the expected week of childbirth and lasts for a span of 18 months. If an employee exhausts their complete 12-month statutory maternity leave, they will be entitled to an additional six months of protective coverage upon resuming work.
Adoption leave: The enhanced redundancy protection lasts 18 months after the child’s placement, or upon their entry into Great Britain for overseas adoptions.
Shared Parental Leave (SPL): Employees will benefit from protection during shared parental leave, with an added safeguarded timeframe upon their return to work. This duration is computed from the child’s birth or placement for adoption, extending for 18 months. The supplementary protection period is contingent on the employee having undertaken a minimum of six consecutive weeks of shared parental leave, and it becomes applicable to shared parental leave initiated on or after 6 April 2024. It’s important to note that this protection won’t be applicable if the employee is already protected under the adoption or maternity provisions mentioned earlier.
Carer’s Leave Act 2023
Also coming into force on 6 April, this Act introduces a new provision: one week of unpaid leave per year for employees caring for dependents with enduring needs. This entitlement is accessible to all employees from their first day at work. Employees will be entitled to unpaid leave to give or arrange care for a ‘dependant’ who has:
• A physical or mental illness or injury that means they’re expected to need care for more than 3 months
• A disability (as defined in the Equality Act 2010)
• Care needs because of their old age
• The dependant does not have to be a family member. It can be anyone who relies on them for care.
Employees need to give their employer notice before they want their leave to start.
If the request is for half a day or a day, the notice period must be at least 3 days. If the leave request is for more than a day the notice period must be at least twice as long as the requested leave. For example, if the request is for 3 days, the notice period must be at least 6 days. Employees are not required to evidence their entitlement to the leave.
The Neonatal Care (Leave and Pay) Act 2023
The Neonatal Care (Leave and Pay) Act, passed in 2023, is slated to take effect in April 2025 and is only available to employees. Parents of babies who are admitted into hospital up to the age of 28 days, and who have a continuous stay in hospital of 7 full days or more will be entitled to take up to 12 weeks of paid leave and a minimum entitlement of one week, in addition to other leave entitlements such as maternity, paternity and shared parental leave.
Parents will be entitled to this leave from day one. To be eligible for Neo Natal Care Pay (NCP), an employee will be required to be employed for a minimum of 26 weeks prior to the leave being requested with an average earning of £123 a week. NCL must be taken in the first 68 weeks of the baby’s birth.
Safeguard Against Sexual Harassment
The Worker Protection (Amendment of Equality Act 2010) Act 2023
Set to take effect in October 2024, this employment law amendment will alter the Equality Act 2010 imposing a duty on employers to enact measures to prevent sexual harassment. This means that employers will have a new, proactive duty to prevent sexual harassment in the workplace. The legislation aims to enhance workplace safety and shift responsibility onto employers for fostering safer environments.
The legislation will be supplemented by a new statutory code of practice which is being produced by the Equality and Human Rights Commission.
The Act also empowers Employment Tribunals to increase sexual harassment compensation by a maximum of 25% in cases where an employer are found to have neglected their duty.
Flexible and predictable working
Employment Relations (Flexible Working) Act 2023
According to the Act, employees gain the privilege to request flexible working from the outset of their employment, altering the current stance of waiting for 26 weeks. The regulations enforcing this change were presented to Parliament on 11 December and will be effective from 6 April 2024.
Additionally, employees can now submit two requests within a 12-month timeframe, an increase from the previous allowance of one. Unlike the current requirement to elucidate the impact of the requested change, employees will no longer need to provide an explanation. Furthermore, employers must render a decision on the request within two months, as opposed to the previous three-month timeframe.
The Workers (Predictable Terms and Conditions) Act 2023
Expected to take effect around September 2024, the new Act aims to bolster worker protections, particularly for those in the gig economy. It introduces a provision granting workers and agency workers the right to request more predictable terms and conditions of work, thereby enhancing stability.
In many respects, the regulations governing this right mirror those pertaining to flexible working requests. For eg. employers must handle applications reasonably and may only refuse for one of eight statutory reasons. However, unlike flexible working requests, which are soon to become available from day one of employment, the right to request a predictable working pattern typically necessitates 26 weeks of qualifying service.
Additionally, individuals engaged on fixed-term contracts lasting less than 12 months are presumed to have unpredictable working patterns, automatically entitling them to utilize this new right.
Holiday Pay, Working Time, TUPE and Holiday Carry Forward
The Employment Rights (Amendment, Revocation, and Transitional Provision) Regulations 2023 took effect on January 1, 2024, applying to holiday years starting on or after April 1, 2024.
The Regulations contain significant changes to the way holiday is calculated and paid for part-year and irregular hours workers. They also include some changes to consultation requirements under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) and to the requirements for employers to keep records of workers’ working time.
Calculation of holiday pay for part-year workers and irregular hours workers:
Regarding holiday pay and annual leave, the regulations will legalize rolled-up holiday pay (at a rate of 12.07%) for workers with irregular hours or part-year schedules. This aims to simplify holiday entitlement calculations for employers and ensure workers’ entitlement aligns with their actual work hours.
Part-year workers, who work only part of the year with unpaid periods of at least a week, and irregular hours workers, with variable working hours, will benefit from this change. Previously, calculating holiday pay using a reference period was impractical due to varying work patterns.
Now, employers can opt to calculate entitlements using a 12.07% rate applied to workers’ earnings in any pay period.
In the past, it was a common practice for employers to determine the holiday entitlement of part-year and irregular hours workers by applying a calculation of multiplying their worked hours by 12.07%. However, in the case of Harpur v Brazel, the Supreme Court ruled that this method was unlawful according to the Working Time Regulations and should not be adopted.
Subsequently, the Regulations have been amended to counter the impact of the Supreme Court decision, clarifying that part-year and irregular hours workers will now accumulate holiday at the rate of 12.07%. It’s important to note that the Regulations set a maximum limit of 28 days for the amount of holiday a worker can accrue.
The regulations also uphold several EU laws post-Brexit. On working time, they eliminate the requirement for employers to keep records of working hours and rest periods, aiming to reduce reporting burdens. However, the impact of this change remains uncertain, as compliance will need to be demonstrated in alternative ways.
Working time – The regulations eliminate the necessity for employers to maintain records pertaining to working hours and rest periods. Nonetheless, as employers will be obligated to prove adherence to the regulations through alternative means, the actual implications of this alteration are currently uncertain. The intent behind these changes is to alleviate reporting burdens on employers, which the government deemed “time-consuming.”
TUPE under the changes to the TUPE regualtions, businesses with fewer than 50 employees or transfers involving fewer than 10 employees can now consult directly with employees, bypassing collective consultation requirements. This streamlines the TUPE transfer process for small transfers.
Carry-forward of holiday
The Regulations incorporate EU case law into the Working Time Regulations 1998, establishing statutory rights for annual leave carryover.
Leaves can be carried over in the following circumstances:
- Up to 28 days – if a worker is unable to take their statutory holiday entitlement because they are on statutory leave (e.g. family related leave).
- Up to 20 days – if a worker has been unable to take their statutory holiday entitlement due to sickness.
- Up to 20 days – if an employer has failed to: (a) pay a worker their paid leave entitlement; (b) give the worker a reasonable opportunity to take their leave and encourage them to do so; or (c) inform the worker that untaken leave must be used before the end of the leave year to prevent it from being lost.
Note that the number of days’ holiday above are based on someone working a five-day week and for irregular hours and part-year workers, these carry-over rights apply to all their statutory holiday entitlement
Calculate holiday entitlement: https://www.gov.uk/calculate-your-holiday-entitlement
National Living Wage and National Minimum Wage rates
From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage.
- Ages 21 and over – £11.44
- Ages 18 to 20 – £8.60
- Ages Under 18 – £6.40
- Apprentice – £6.40
In conclusion, staying informed about the upcoming employment legislation changes for the UK is crucial for employers to ensure compliance and maintain a fair and harmonious workplace environment. By understanding the key updates discussed in this article, employers can proactively adapt their policies and practices to align with the new legal requirements. It’s essential to prioritize compliance efforts and seek professional guidance when necessary to navigate the evolving regulatory landscape effectively.
With thorough preparation and a commitment to upholding employee rights, businesses can mitigate risks and foster a positive working environment conducive to growth and success in 2024 and beyond.
How Beyond Borders HR Can Help You
The intricacies of these 2024 employment legislation changes for the UK can be challenging for employers to navigate independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.
