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 few months are set to be rather busy.
That’s especially true for those of you looking after HR matters. To put this into context Lucy Cotterell, an HR consultant in our employment law team, and I are sharing below the key legislative changes already implemented, just about to happen or heading our way later this year.
It’s essential that HR professionals, business leaders and executives stay updated on these new laws.
So take a moment to consider how they may impact your business, what risks they highlight and how can they be best managed.
Changes already implemented this year
In case you missed them, the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, effective from 1 January, included these 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 Working Time Regulations (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. 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. These affect leave years starting on or after 1 April 2024, so if your business’s holiday year is January to December the new rules start 1 January next year. Employers should start preparing for these changes, consulting relevant workers and unions as part of the process.
Changes from 1 April
National Living/Minimum Wage Changes – If you’re aged 21 and over you are now entitled to the National Living Wage following changes introduced from 1 April. Previously, you had to be 23 to qualify.
Please be aware that it is a criminal offence if employers fail to pay the correct National Minimum and Living Wages to their workers – to 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 |
Changes from 6 April
Carer’s Leave Act – From 6 April carers can take one week of unpaid leave each year to care for a loved one with long-term care needs such as illness, injury, disability, or old age. It can even be taken 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. The existing eight grounds for rejection remain 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 will have the right to be offered a suitable alternative role if available.
Changes expected later this year
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 engage in meaningful consultation with a view to reaching agreement. The code is awaiting Parliamentary approval and is expected to be in force this summer.
Employment (Allocation of Tips) Act – with an estimated introduction on 1 July, 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 is currently drafting a statutory code of practice to provide guidance to employers and workers.
Workers (Predictable Terms and Conditions) Act – A new law, estimated to come into force this September, 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.
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. These changes are estimated to take effect from October.
If you’re in any doubt about the above changes, we’d encourage you to speak to a professional well versed in both the legislative requirements and practicalities of implementing them within an organisation of your size and type.
Sean McDonough is managing partner and head of employment law at Bath law firm Mogers Drewett. Lucy Cotterell is an HR consultant in Mogers Drewett’s employment law team.
