Employment Law Changes 2024
Employment Law Changes 2024-25
Just in case you were under the misapprehension that we were set for a quieter period for employment legislation you’ll see below that the next 12-18 months are set to be rather busy. That’s especially true for those of you looking after HR matters. To put this into context we’re sharing below the key legislative changes heading our way and when they’re expected to land.
Before we start it’s essential HR professionals, business leaders and executives stay updated on these new laws. We know it’s a minefield but we’d urge you, if not already aware, to take a moment to consider how they may impact your business, what risks they highlight and how can they be best managed.
From January 1st, 2024
The Government has responded to the consultation on ‘Retained EU Employment Law’, covering reforms in annual leave, holiday pay, and record-keeping under the Working Time Regulations 1998 (WTR), and consultation requirements under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
The proposed Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, effective from 1 January 2024, include key changes:
-
Holiday Pay
: The new regulations modify holiday pay calculation following the Supreme Court’s Harpur Trust v Brazel decision, which granted all workers 5.6 weeks of paid leave annually. Now, holiday entitlement for irregular and part-year workers will be calculated at 12.07% of hours worked. Additionally, ‘rolled-up’ holiday pay will be permitted, allowing workers to receive holiday pay as part of their regular wages, effective from 1 April 2024. This applies only to irregular and part-year workers, including some agency workers.
-
Worker Classification
: Two new worker categories, ‘Irregular Hours Workers’ and ‘Part Year Workers’, have been introduced for holiday pay calculations. ‘Irregular Hours Workers’ have no consistent working hours pattern, while ‘Part Year Workers’ are not working or paid for at least one week per year. Employers can now consider ‘rolled-up’ holiday pay for these categories.
-
Record-keeping under WTRs
: The government confirmed changes to WTR record-keeping requirements. Employers will no longer need to record daily working hours, a move to alleviate administrative burdens. The UK, no longer bound by ECJ decisions, will amend the WTR accordingly. However, employers must still maintain adequate records to show compliance with:
- A 48-hour weekly working limit
- Duration of night work
- Night workers’ health assessments
- Opt-out agreements
These regulatory changes aim to balance workers’ rights with reducing administrative burdens for businesses.
New guidance has been issued regarding the changes effective 1 January 2024. These affect leave years starting on or after 1 April 2024, so if your business’s holiday year is January – December the new rules start 1st January 2025.Employers should start preparing for these changes, consulting relevant workers and unions as part of the process.
From April 1st 2024 – National Living/ Minimum Wage Changes
From 1 April 2024, if you’re aged *21 and over you will be entitled to the National Living Wage.
Please be aware that it is a criminal offence if employers fail to pay the correct National Minimum and Living Wages to their workers. [listen to our podcast on the subject CLICK HERE]
| Band | Rate from 1/4/24 |
|---|---|
|
*Age 21 or over (National Living Wage) |
£11.44 |
| Age 18 to 20 | £8.60 |
| Under 18 | £6.40 |
| Apprentice | £6.40 |
*Previously, you had to be 23 to qualify for the National Living Wage, now reduced to 21.
Who gets the apprentice rate
You’re entitled to be paid at least the apprentice rate if you’re an apprentice aged:
- under 19
- 19 or over, and in the first year of your current apprenticeship agreement
If you’re 19 or over and have completed the first year of your current apprenticeship, you’re entitled to be paid at least the minimum wage for your age.
To check if you’re paying or receiving the correct rates you can access the National Minimum Wage and Living Wage calculator
From April 6th 2024
Carer’s Leave Act
From April 6th carers can take one week of unpaid leave each year to care for a loved one with long-term care needs, like illness, injury, disability, or old age. You can even take it in single days or half-days for added flexibility.
Employment Relations (Flexible Working) Act
Employees can make two formal flexible working requests within 12 months. This right becomes available on day one of employment, (not after 26 weeks of continuous employment). Employers have two months to make a decision and must consult with employees if unable to accept the request with the existing eight grounds for rejection remaining unchanged.
Protection from Redundancy (Pregnancy and Family Leave) Act
Pregnant employees and those returning from maternity, adoption, or shared parental leave will enjoy additional protection against redundancy. They’ll have the right to be offered a suitable alternative role if available.
Summer & Autumn 2024
New Statutory Code on Dismissal and Re-engagement
The new code sets out sensible step-by-step guide for all employers to follow to explore alternatives to dismissal when changing employees’ terms and conditions and engages in meaningful consultation with a view to reaching agreement. The code is currently in draft form awaiting Parliamentary approval and expected to be in force in Summer 2024.
1 July 2024 (estimated)
Employment (Allocation of Tips) Act
This act ensures that all tips and service charges are fairly distributed among workers, not just employees. Employers are required to have a written policy on tip distribution and keep records of tips and service charges for three years. The Department for Business and Trade are currently drafting a statutory code of practice to provide guidance to employers and workers.
September 2024 (estimated)
Workers (Predictable Terms and Conditions) Act
A new law will grant workers, including agency and zero-hours workers, the right to request a more predictable work schedule. Even those on fixed-term contracts of 12 months or less, with at least 26 weeks of service, can make this request.
October 2024 (estimated)
Worker Protection (Amendment of Equality Act 2020) Act
This new legislation will require all employers to take reasonable steps to prevent sexual harassment in the workplace. If they fail to do so, the Equality and Human Rights Commission can take direct action. Successful tribunal claims may also receive up to a 25% compensation increase.
Next Year – April 2025 (estimated)
Neonatal Care (Leave and Pay) Act
After considerable lobbying efforts by charities supporting the welfare of new-born babies, next year there will be immediate rights for employee parents if a child needs neonatal care. Parents will have the right to take up to 12 weeks of leave. You won’t need to take it all at once – it can be in single days or half days. To qualify for neonatal care, pay, you’ll need to have worked for at least 26 weeks. The neonatal care should begin within 28 days of your child’s birth and last at least seven days and you’ll have up to 68 weeks after your child’s birth to use this leave.
For further information contact:
Sean McDonough Managing Partner and Head of Employment Law sean.mcdonough@mogersdrewett.com
Lucy Cotterell HR Consultant – Employment Law
Lucy.cotterell@mogersdrewett.com