Spring 2024 employment law round-up
4 March 2024
After a quiet few years, this year is a busy one for employment legislation. The Government has backed a number of private members’ bills which are now coming into force. In addition to the usual annual increases to statutory rates, there are several important changes that employers need to know about.
Record-keeping under working time regulations
From 1 January 2024, the rules requiring employers to record their employees’ daily working hours have been relaxed. Instead, employers need to keep records to show compliance with the Working Time Regulations 1998.
Increased flexibility in taking paternity leave
Following the birth or adoption of a child, an eligible father or partner can take one or two weeks’ leave. The rules have become more flexible, allowing the employee to take the leave in two blocks of one week, rather than a single block, and allowing leave to be taken during the first year, rather than within eight weeks of the birth or adoption. Employees need to give notice 28 days in advance of each period of leave, rather than by 15 weeks before the expected week of birth. The notice provisions are unchanged for adoptive parents. The changes apply where the expected week of birth or the date for placement for adoption is on or after 6 April 2024.
Changes relating to holidays
Since Brexit, the Government has made relatively few changes to areas of employment law that were previously determined by European law. One area that is now set to change is the law on holidays and holiday pay.
The changes include the introduction of two new categories of worker – part-year workers and irregular-hours workers – and new rules relating to them, including rules about carrying forward leave. The new rules are intended to resolve perceived impracticability and unfairness in the holiday regime which applies to these workers. The most significant changes are outlined below.
Calculation of holiday entitlement
For leave years starting on or after 1 April 2024, holiday entitlement for workers meeting the new definitions of ‘irregular-hours worker’ and ‘part-year worker’ will accrue at a rate of 12.07 per cent (or a higher percentage if they are entitled to more than the statutory minimum) of the number of hours worked in each pay period. In practice, this will simplify holiday entitlement calculations in many cases, albeit this method was already used by many employers.
Rolled-up holiday pay
Employers of part-year and irregular-hours workers will be allowed to opt to pay rolled-up holiday pay, meaning a 12.07 per cent uplift to each payslip in respect of holiday, instead of calculating and paying holiday pay at the time it is taken (as is currently required). Again, this only applies to workers who meet one of the new definitions and in relation to leave years starting on or after 1 April 2024. Rolled-up holiday pay had previously been declared unlawful by the European courts.
Carry forward of leave due to COVID-19
The right to carry forward leave where it could not be taken due to COVID-19 ended on 1 January 2024. Workers must use any such leave by 31 March 2024.
Extension of National Living Wage
From 1 April 2024, the National Living Wage, the highest band of the minimum wage, will apply from the age of 21 (rather than 23).
Increases in statutory pay rates
Employers should prepare for the annual increases in the following rates:
National minimum wage from 1 April 2024:
apprentices – increase from £5.28 to £6.40 per hour;
workers aged 16–17 – increase from £5.28 to £6.40 per hour;
workers aged 18–20 – increase from £7.49 to £8.60 per hour; and
National Living Wage – now applies to those aged 21 and over, increases from £10.42 to £11.44 per hour.
Sick pay from 6 April 2024, increases from £109.40 to £116.75 per week.
Family-related statutory pay from 7 April 2024, the rates of statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay and statutory parental bereavement pay increase from £172.48 to £184.03 per week.
A week’s pay from 6 April 2024, the statutory limit on a week’s pay, which is used to calculate statutory redundancy payments and basic awards for unfair dismissal, increases from £643 to £700.
Enhanced family-friendly protection from redundancy
If her role has been selected for redundancy, a woman on maternity leave must be offered any suitable alternative employment in priority over other employees. From 6 April 2024, this protection will be extended to any employee who:
is pregnant and has told their employer that they are pregnant; or
has returned to work from maternity leave, adoption leave, or shared parental leave and the baby was born or placed for adoption within the previous 18 months; or
has told their employer that they were pregnant and has had a miscarriage within the previous two weeks.
Extended right to request flexible work
From 6 April 2024, employees will have the right to make a flexible working request from the first day of their employment; the current requirement of 26 weeks’ service will cease. A number of changes to the request process are also expected to come into force on 6 April 2024. These include allowing an employee to make two requests to work flexibly in a 12-month period; previously only one was allowed. The employer will have to consult with the employee about each request and reach a decision within two months (reduced from three). An updated Acas statutory code of practice on flexible working requests is also expected to come into force in April 2024.
New right to carers’ leave
From 6 April 2024, employees with a dependant with a long-term care need can ask for one week’s unpaid leave every 12 months to care for that dependant. This right will exist from the first day of employment. Employees must give notice of three days or twice the amount of the period of leave, whichever is greater. In some circumstances, employers can postpone the leave for up to one month.
TUPE consultation changes
For transfers taking place from 1 July 2024, the option to consult directly with staff, rather than elect employee representatives, will be more widely available. Direct consultation can take place if the organisation has fewer than 50 employees, or if fewer than 10 employees will transfer regardless of the size of the organisation. Currently this option is only available to employers of fewer than 10 employees.
Duty to prevent sexual harassment of employees
From October 2024, employers will be under a duty to take reasonable steps to prevent the sexual harassment of their staff during employment. Tribunals will be able to increase compensation by up to 25 per cent if an employer breaches this duty.
Other changes expected in 2024
A few other changes are expected this year, with dates yet to be confirmed:
the Employment (Allocation of Tips) Act 2023 will require employers to give all tips to workers without deductions and to ensure tips are shared fairly between staff in accordance with a new statutory code;
the Workers (Predictable Terms and Conditions) Act 2023 will give greater rights to vulnerable workers. Agency workers and zero-hours workers will be able to request more predictable terms and conditions, include their working pattern; and
the draft statutory code of practice on ‘fire and rehire’ dismissals, which has recently been updated following consultation in 2023, needs to be approved by Parliament.
How we can help
This is the most significant year of legislative change we have seen for a long time. We can assist you in preparing contracts, policies and practices in readiness for these changes so that your business is compliant.
For further information, please contact the team at Synchrony Law.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.