Employment law updates in 2024 - Are you prepared?
Family Friendly Rights
This legislation, effective from 6 April 2024, will allow employees the right to take one week of statutory unpaid carer’s leave in a 12-month period, to care for, or to arrange care for, a dependent with long-term care needs defined as:
a physical or mental illness or injury and expected to need care for more than 3 months,
a disability (as defined in the Equality Act 2012)
care needs due to old age.
This is a ‘day one’ right. Carer’s leave can be taken as half days or full days and does not need to be taken on consecutive days. Employees need to give their employer notice before they want their leave to start. Any dismissal of an employee connected to them taking carer’s leave will be automatically unfair.
Protection from Redundancy (Pregnancy and Family Leave) Act 2023
The new legislation, implemented on 6 April 2024, provides greater protection against redundancy during pregnancy and on return to work from maternity leave, paternity leave, adoption leave and shared parental leave.
The legislation will now include:
pregnant employees; covering them from when they inform their employer of their pregnancy
those who have recently returned from maternity, paternity, adoption or shared parental leave (where the shared parental leave is greater than six weeks).
Under these new laws, they will have the protection extended to until the child is 18 months old for natural births or 18 months from adoption.
Failure adhere to the legislation will give the employee the right to bring a claim for automatic unfair dismissal.
Paternity Leave (Amendment) Regulations 2024
For children born or adopted on or after 6 April 2024, the revision will improve the flexibility of paternity leave by:
Allowing employees to take paternity leave as two one-week blocks (instead of the current one block of one or two weeks);
Letting employees take the leave within the child’s first year following the birth or adoption (rather than it being within the current first eight weeks); and
Only requiring 28 days’ notice to take paternity leave (rather than the current 15 weeks’ notice).
Employment Relations (Flexible Working) Act 2023
Changes to flexible working laws effective from 6 April 2024:
The right to request flexible working will be available from the first day of employment.
Employers must respond to requests within two months.
Employees can now make two requests within a 12-month period, instead of just one.
Employees are no longer required to explain how the change will impact the employer or provide guidance on managing the change as part of their request.
ACAS has released a draft Code of Practice on flexible working requests, accessible here.
Increased compensation and redundancy
The weekly pay rate links to many types of claims, in particular, the calculation of statutory redundancy and awards for unfair dismissal. The annual increase takes into account inflation meaning 2024 sees a much bigger increase than usual.
From 6 April 2024, the cap on a week’s pay will increase from £643 to £700. This impacts the amount that needs to be paid for statutory redundancy; anyone earning more than this (or £36,400 p.a.) will have their statutory redundancy pay capped at the £700 weekly rate rather than using their actual weekly rate of pay. Anyone earning less than £700 per week will have their statutory redundancy pay calculated based on their actual weekly pay. The maximum amount of statuary redundancy climbs to £21,000; a sum based on age and length of service.
From 6 April, the maximum compensatory award for claims of unfair dismissal will rise from £105,707 to £115,115 (although this is capped at the employee’s annual salary if lower).
Other changes include; the statutory guarantee pay (for employees who are temporarily laid off) increases from £35 to £38 per day. Companies are urged to ensure contracts of employment and policies are updated to reflect if temporary layoffs are custom and practice for their industry to ensure the provision is clear to employees.
The basic award for certain types of unfair dismissal increases £7,836 to £8,533.
Increased National Minimum Wage from 1 April 2024
The national minimum wage for workers aged 21 and over increases to £11.44. The age has also been lowered from the age of 23 to 21.
Increased Statutory Sick Pay from 6 April 2024
SSP increases to £116.75 per week (from £109.40)
Increased Family-Related Statutory Pay from 6 April 2024
Rates of statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory parental bereavement pay and statutory shared parental pay increase to £184.03 per week (from £172.48).
Holiday and holiday pay
Changes to holiday include the introduction of new rules that should greatly simplify the rules for part-year or term-time only worker and/or are paid by the hour.
Calculation of holiday entitlement
For leave years starting on or after 1 April 2024, holiday entitlement for some workers 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. Provided they meet the new definition of a part-year worker or an irregular-hours worker, this should simplify calculating holiday entitlement.
Rolled-up holiday pay
Rolled-up holiday pay had been declared as unlawful by the European courts. However, employers of part-year workers and irregular-hours workers will be able to opt to pay rolled-up holiday pay; an uplift to pay of 12.07 per cent for holiday pay; rather than calculating and paying holiday pay at the time the worker takes holiday.
TUPE changes
The following rules will apply to TUPE transfers taking place on or after 1 July 2024:
Employers will have the option to consult directly with staff rather than elect employee representatives 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.
Mandatory duty on employers to prevent sexual harassment
From October 2024, employers will be obliged to take reasonable steps to prevent the sexual harassment of their employees during employment. Tribunals will be able to increase compensation by up to 25 per cent if this duty is breached.
There isn’t a one size fits all approach to this subject, much will depend on the current culture and track record of the Company. It will require a robust approach and instill confidence that complaints relating to sexual harassment will be taken seriously if reported.
Proposed Changes to legislation to keep an eye on later in 2024
Tips
This proposed change is likely to come into force on 1 July 2024. Currently, cash tips are usually seen as the property of the worker they are paid to. Card payments are usually seen as belonging to the employer.
The purpose of this change is to ensure that 100% of the electronic tips are dealt with in a fair and transparent way. Employers will also be required to pay tips to its workers no later than the end of the month the tips were made.
Employers will also need a written policy on tips, and to keep a record for 3 years as to how tips have been dealt with. If needed, employees (and agency workers) will have the right to request information relating to the tipping records.
Predictable working
There is a proposal for a new statutory right to allow workers to request a more predictable working pattern. This is likely to come into force in September 2024.
It will be relevant for those whose existing working patterns are uncertain in relation to the hours or times they work, e.g. casual workers, those on annualised contracts and those on a fixed term contract of 12 months or less.
The government has indicated the qualifying period for this right will be 26 weeks’ service, but workers will not need to have worked continuously.
There will be a procedure to follow (akin to a flexible working request). ACAS has launched a draft Code of Practice (available here) which will address the handling of such requests. It is anticipated that the Code will not be legally binding.
Other recommendations:
Businesses are encouraged to establish policies governing the use of social media, messaging apps, and AI for several reasons. Firstly, such policies protect the company's reputation by guiding employees on appropriate online behaviour. Additionally, they help maintain data security and privacy by outlining proper handling procedures for sensitive information. Moreover, these guidelines aid in preserving productivity by preventing excessive use of technology during work hours. Furthermore, clear policies mitigate legal risks associated with technology use and address ethical considerations, ensuring responsible deployment of AI and adherence to ethical standards. Overall, implementing these policies promotes responsible and effective utilisation of technology while safeguarding the organisation from potential risks.
Undertaking right-to-work checks is crucial before extending offers of employment, particularly in light of heightened fines for hiring illegal workers. These checks are essential for ensuring that individuals have the legal right to work in the UK, thus mitigating the risk of employing unauthorized or ineligible personnel. By verifying the immigration status of prospective employees, businesses can not only avoid hefty penalties but also uphold legal compliance and safeguard their reputation. With the potential for significant fines and even criminal prosecution for non-compliance, conducting thorough right-to-work checks is a fundamental step in the recruitment process, demonstrating a commitment to lawful employment practices and responsible business conduct.
Get in touch:
If you feel that your business needs to have more robust policies and procedures in place, or if your company has grown to the point where you require HR support but not on a full-time basis, or perhaps you need assistance with a specific employee relations matter, please reach out to hr@ellisatkins.co.uk for further information or a no-obligation quote.