2024 Employment law updates coming into effect

As we enter the new year, several pivotal changes to UK employment law are set to take effect in 2024 – some already in place from 1^st January. Employers need to stay informed and adapt to these modifications to ensure compliance and foster a harmonious work environment. In this blog, we provide an overview of the upcoming legislation by month.

 

January 2024

Annual leave overhaul

Starting 1^st January 2024, workers will now have the option to carry forward unused annual leave if they were unable to take it due to family leave or sick leave during the year. Notably, any remaining annual leave following a period of sick leave must be utilised within 18 months.

Also from 1^st January 2024, workers can no longer accrue COVID carryover leave. Workers will still be able to use the leave they accrued prior to 1^st January 2024, before 31^st March 2024. Workers whose employment terminates on or before 31^st March 2024 are able to claim any pay in lieu of any remaining entitlement they were unable to use due to the effects of coronavirus.

Increased fines for illegal workers

Whilst the exact date has not yet been confirmed, from later this month the government fines for employing illegal workers will triple – for a first offence the fine will increase from £15,000 per illegal worker, to £45,000 per illegal worker, and for repeated breaches, the charge will be £60,000 per illegal worker, increasing from £20,000. Ensure you are adhering to Right to Work rules and find out how to carry out checks by reading our blog.

 

April 2024

Minimum Wage increase

Chancellor Jeremy Hunt's announcement in the autumn statement brings about a nearly 10% increase in the national living wage, rising to £11.44 per hour from 1^st April 2024. This increase extends to 21 and 22-year-olds, with corresponding rises in national minimum wage rates for younger workers of £1.11 per hour to £8.60 for 18 to 20 year olds. Those undertaking apprenticeships will also receive an increase, specifically in certain sectors, for example, the minimum hourly pay for an 18-year-old in the construction industry will increase from £5.28 to £6.40.

Holiday Pay reforms

Holiday pay for part-time and irregular hours workers has been reformed, as a result of the Harpur Trust v Brazel Supreme Court ruling, and will now be calculated at 12.07% of hours worked in a pay period for annual leave starting on or after 1^st April 2024.

Also starting 1^st April 2024, companies can provide atypical workers with an additional sum for holiday pay at each payment date (rolled up holiday pay), regardless of when the holiday is taken.

Employers can opt for one of the above two options when calculating holiday pay in a pay period.

Redundancy protections enhanced

From 6^th April 2024, employers will be obligated to offer suitable alternative employment to an extended category of employees during redundancy processes for pregnancies, adoption and shared parental leave announced / requested by employees on or after 6^th April 2024. Pregnant women and new parents will receive increased protection from redundancy under the Pregnancy and Maternity Discrimination Bill. Employers already have an obligation to offer any employee on maternity leave, shared parental leave or adoption leave, a suitable alternative vacancy before offering redundancy.

The Pregnancy and Maternity Discrimination Bill (Pregnancy and Family Leave) will extend current rights of protection so that it applies to pregnant women as well as new parents returning to work from a relevant form of leave from when a woman tells her employer she is pregnant, until 18 months after the birth, allowing a mother returning from a year of Maternity Leave, Shared Parental Leave or Adoption Leave, to receive 6 months additional redundancy protection.

Carers leave introduced

On 6^th April 2024, employees will gain the right to apply for up to one week of unpaid carer's leave for a dependent with long-term care needs. Employers cannot decline the leave but may postpone it. Updated policies and record-keeping systems are crucial for compliance.

Paternity leave changes

From 6^th April 2024, there will be significant changes to the regulations aimed at reforming statutory paternity leave entitlements. Changes include adjustments to notice and evidence requirements, allowing fathers and partners to take leave in two non-consecutive one-week blocks, and a mandate for continuous leave.

 

July 2024

TUPE Reforms

Starting 1^st July 2024, reforms to Transfer of Undertakings Protection of Employment (TUPE) rights protecting employees and their benefits when their organisation transfers from one employer to another, will simplify the consultation process for small businesses. Small businesses with a workforce of fewer than 50 employees as well as any-sized businesses planning to transfer fewer than 10 employees, will have the option to directly engage with transferring employees in the absence of existing employee representatives, alleviating the burden and offering time and cost savings to small businesses. However, in cases where employee representatives, such as trade unions, are present, employers must adhere to the requirement of consulting with them.

Flexible working rights

From July 2024, employees can request flexible working from day one of their employment. Employers must consider requests and provide reasons if requests are rejected.  As part of Flexible Working legal updates, employees will:

• be able to make two flexible working requests in any 12-month period, and employers will have to respond to requests within two months (currently three months).

• no longer be required to set out how the effects of their flexible working request might be dealt with by their employer.

Flexible working requests can include job-sharing, flexitime, and working compressed, annualised, or staggered hours. Whilst employers will not be obliged to agree to flexible working requests, they will be required to consult with their employees to explore the available options, before rejecting a flexible working request.

Hospitality employees to keep tips

The Employment (Allocation of Tips) Act 2023 is due to come into effect on 1^st July 2024 and will make it illegal for employers to withhold tips from workers. While cash tips are already protected by law, this new legislation will go further to cover card payments in an increasingly cashless society. Employers will be required to have a written policy on tips and record how they manage tips, and ensure they pass on tips to workers without any deductions.

 

September 2024

Predictable working hours

From September 2024, workers with unpredictable schedules can request predictable working hours, days, and times from their employers, with a response due within a month.

 

October 2024

Combatting sexual harassment

Following the passing of The Worker Protection (Amendment of Equality Act 2010) Bill 2022-23, companies must take reasonable steps to prevent sexual harassment. This includes regular anti-harassment training and clear policies and procedures for reporting and handling incidents. The new legislation poses major liabilities for employers by treating an employer as harassing their employee if the employee is harassed in the course of their employment within the workplace and / or by third parties (such as customers or clients), and the employer fails to take all reasonable steps to prevent the harassment.

 

Other HR Laws expected in 2024

Dates are yet to be confirmed for additional employment laws expected to be implemented in 2024. Further information is yet to be released about some of these including changes to pension auto enrolment where the minimum age to enrol an employee will reduce to 18, and the minimum amount earned will either be reduced or abolished. Other changes expected include minimum service levels during strikes; hire and rehire practices; changes to non-compete laws and changes to data protection requirements. As soon as we have more information on these we will share it with you.

For more insights into pending legislation that we do have information on, check out our previous blogs below:

• uk-supreme-court-ruling-on-backdated-holiday-pay-what-it-means-for-employers

• family-related-employment-law-changes-expected (including Neonatal Care Leave)

 

Dêmos HR Solutions are here to help

These upcoming changes to UK employment law reflect a commitment to creating a fair and inclusive work environment. As responsible employers, it is crucial to stay informed, update policies, and foster a workplace culture that aligns with these evolving legal standards. Stay compliant, stay informed, and embrace the positive transformations that 2024 brings to the world of UK employment; sign up to our monthly Employer Q&A updates here.

 

If you would like support implementing processes or updating policies to adhere to the new legislation, please contact Debbie Mosley on 07974 695 365 or email debbie@demoshr.co.uk.

Tags: #sexualharassment #flexibleworkingrights #TUPEreform #carersleave #PregnancyandMaternityDiscriminationBill #sickleave #annualleave #covidcarryoverleave #righttowork #illegalworkerfine #minimumwage #harpurtrust #holidaypaycalculation #irregularworkers #,