2024 is set to be a busy one for employers with a host of employment law reforms underway. We highlight some of the key changes that employers need to consider that may impact their policies and procedures.
What are the key employment law reforms?
- New holiday rules for ‘irregular workers’ and ‘part-year’ workers
New legislation applies to holiday accrual and holiday pay for part-year and irregular-hour workers. The changes are set out in Regulation 15B Working Time Regulations 1998 which take effect for holiday years commencing on or after 1 April 2024. These workers will accrue paid leave at the end of each pay period at 12.07% of actual hours worked which can be paid on a rolled-up basis. The changes are complex, and specific advice should be sought if your company utilises these types of workers.
- Changes to eligibility and rates of minimum wage
From 1 April 2024, all rates of National Minimum Wage including National Living Wage increased:
- National Living Wage for those aged 21 and over - £11.44 per hour
- National Minimum Wage:
- for those aged 18 to 20 - £8.60 per hour
- Under 18s and apprentices - £6.40 per hour
- Employee National Insurance cut by 2p. Self-Employed National Insurance rate cut by 2p
The main rate of employee National Insurance has been cut by 2p from 10% to 8% from 6 April 2024. A further 2p has also been cut from the main rate of self-employed National Insurance (in addition to the previous 1p cut) meaning that the main rate has been cut from 9% to 6%.
- Paternity leave and pay changes
The Paternity Leave Amendment Regulations 2024 will apply in all cases where the expected week of childbirth falls on or after 6 April 2024. The legislation means that paternity leave can be split into 2 blocks of 1 week at any point in the first year after the birth or adoption of their child. The notice period required for each block of leave has also been shortened to 28 days instead of 15 weeks before the expected week of childbirth.
The statutory weekly rate of pay has increased as set out further below.
- Statutory family leave pay rate increase
From 7 April 2024, the statutory rate for maternity pay, paternity pay, adoption pay, shared parental and parental bereavement pay increased to £184.03 per week.
- Flexible working changes: statutory right to request flexible working becomes a "Day One" right
The Flexible Working (Amendments) Regulations 2023 will apply to all applications for flexible working made on or after 6 April 2024. The changes mean that:
- employees can make a flexible working request from day 1 of their employment
- the employer is required to consult with the employee before rejecting any application for flexible working
- the time period within which employers must respond to a request is reduced to two months (from the previous three months)
- there is no longer a requirement for the employee to explain what effect their flexible working request would have on the employer.
- Carers Leave: rights to take unpaid leave
Effective 6 April 2024, the Carer’s Leave Act gives employees the legal right to up to one week of unpaid carer’s leave. This right is intended to help those caring for a dependant with a long-term care need. That need could be an illness or injury that requires or is likely to require care for more than 3 months; a disability under the Equality Act 2010; or, an issue relating to old age. There is no minimum service length required so an employee can take advantage of this right from the start of their employment. If an employer was to dismiss an employee for a reason with their taking carer’s leave, this would be automatically unfair. The employee is required to give the employer notice that they wish to take carer’s leave.
- Enhanced protection on redundancy for those taking family leave
From 6 April 2024, the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 came into force. Employees who are on a period of family leave (such as maternity leave or shared parental leave) have priority over other employees to be offered any suitable alternative vacancies in a redundancy situation during what is known as a ‘protected period’. The legislation will extend this protected period such that for pregnant employees the protected period will start from the date they inform their employer that they are pregnant, and for those employees returning from maternity leave, adoption leave or shared parental leave (of more than 6 weeks), the protection will apply until 18 months after the expected week of childbirth, date of the child’s birth or date of the adoption placement.
- Statutory sick pay increase
From 6 April 2024, the rate of statutory sick pay increased to £116.75 per week, for eligible employees.
- New duty on firms to prevent sexual harassment
As reported in our earlier newsletter, the Worker Protection (Amendment of Equality Act 2010) Act 2023 coming into force on 26 October 2024 will place a responsibility on employers to take reasonable steps to prevent sexual harassment of their employees in the workplace.
How 3CS can help
For further information or help regarding these or any employment law matter, please get in touch with your usual 3CS contact.
