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New Changes To Employment Law In 2024

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A number of proposed employment law changes are expected during 2024.

This summary gives an overview of what the changes are and when they are expected to come into force.

These changes may require your employment documentation, such as forms, policies, procedures, and contracts to be changed.

Please do not hesitate to contact jon@hrsmartuk.com to talk through any changes that may be required.

UK Employment Law Changes 2024

Holiday Entitlement and Pay from 1st January 2024:

The Government has confirmed the following in regard to holiday pay.

  • reinstated elements relating to the rate of pay that must be included in ‘normal remuneration’ for holiday pay purposes for a minimum of 4 weeks out of the 5.6 weeks.
  • clarified workers’ rights to carry over holiday for Family Leave or Long-Term Sickness.
  • Removed the COVID-19 holiday carryover accrual entitlement.

The Government has also re-introduced “rolled up” holiday pay as a means of paying annual leave to those that work on irregular hours or part-year.

These workers can now be paid their holiday as part of their weekly or monthly pay provided certain conditions are met.

The rate to be applied is 12.07% of hours worked.

This new regime will be applicable with respect to holiday years beginning on or after 1 April 2024.

See the full details on the new holiday entitlement revisions,

Please Note: The issues created by the Supreme Court’s ruling in Chief Constable of the Police Service of Northern Ireland v Agnew, (holiday pay paid as basic rather than normal pay), are still valid. This case was found in favour of employees who only received their basic rather than normal pay for the whole of their holiday entitlement. We would advise all employers to review their holiday pay calculations to assess if they are at risk from this ruling

Increased Statutory Pay Rates From 1st April 2024 

The various National Minimum Wage rates will increase from 1 April 2024, as follows:

  • From April the NMW rate will increase from £10.42 to £11.44 and will now include 21 and 22 year olds.
  • Workers aged 18 to 20 will increase to £8.60 per hour.
  • Young workers aged 16 to 17 will increase to £6.40 per hour.
  • The apprentice rate will increase to £6.40 per hour.

As announced on October 2023, the UK Living Wage has now increased to £12.00 per hour.

The London Living Wage has increased to £13.14 per hour.

The new Living Wage rates must be implemented by 1st May 2024 if your organisation is a Living Wage employer.

The Secretary of State for Work and Pensions has confirmed that State Pension and Benefit Rates (including statutory maternity, paternity, adoption, shared parental and sick pay rates) will increase with effect from 8th April 2024

(see Proposed benefit and pension rates 2024 to 2025).

Employment Law Changes From 6th April 2024

The Flexible Working Act 2023 (and related Regulations) will change how Flexible Working Requests need to be handled, including:

  • Making flexible working requests a “day one” right;
  • Two requests can be made in 12 month period (currently, one request);
  • Employers are required to consult with the employee within a two month period for each request, reduced from three months currently;
  • No need for employees to consider the effects of their requests on the Company

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023  means that any employee returning from maternity, adoption or shared parental leave must be given priority to alternative vacancies that exist during a redundancy process.

The period of protection is currently 12 months but is increasing to 18 months.

The Carer’s Leave Act 2023 will allow employees who are looking after a dependant with a long-term care requirement a statutory right to one week’s unpaid care leave per year.

Newly Published TUPE Regulations

The Government consulted on various possible changes to the rules on holiday entitlement and pay, and in relation to the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), during 2023.

The following legislation changes are going ahead:

For TUPE Transfers taking place on or after 1 July 2024, if there are no existing worker representatives, consultation can take place directly with employees if the employer has fewer than 50 employees or is a business of any size, undertaking a transfer of less than 10 employees.

Employment Law Changes Further Into 2024

The Workers (Predictable Terms and Conditions) Act 2023 is proposed to allow eligible workers to request a more predictable working pattern (expected to come into force September 2024).

The Worker Protection (Amendment of Equality Act 2010) Act 2023 will introduce a new duty on employers to take reasonable steps to prevent sexual harassment at work (expected to come into force October 2024).

Employment Law Changes in the Pipeline

Non-compete clauses: The Government has consulted on limiting post-termination clauses to a maximum of three months. The Government’s intention is to introduce legislation when parliamentary time allows.

How HR Smart Can Help

If you have any concerns about changes in employment law, or just need some HR support, we are ready to help you.

Simply call us on 01903 754107 or email us at heidi@hrsmartuk.com or jon@hrsmartuk.com

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