What is on the horizon for employers in 2024

As we kick off 2024, various employment law changes have been announced recently, which are due to come into force over the course of the year. Staying informed and proactive of the upcoming changes is therefore crucial to ensuring compliance and fostering a positive workplace.

Upcoming changes employers need to be aware of EU law

As of 31 December 2023, the principle of the supremacy of EU law no longer exists, and UK laws no longer must be interpreted in line with EU law. This legal uncertainty means that re-litigation of well-established EU-based case law points is expected. However, given the ongoing delays in the employment tribunals, these may take several years to result in any meaningful change.

Holiday pay

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 brings a major change in the approach to rolled-up holiday pay for atypical workers. For leave years beginning on or after 1 April 2024, there is a new accrual method for irregular-hour workers and part-year workers in the first year of employment and beyond. Holiday entitlement for these workers will be calculated as 12.07% of actual hours worked in a pay period.

Sexual harassment

The Worker Protection (Amendment of Equality Act 2010) Act 2023 is expected to come into force around October 2024. This Act creates a positive duty on employers to take reasonable steps to prevent sexual harassment. It gives employment tribunals the power to uplift sexual harassment compensation by up to 25% if an employer is found to have breached the duty. In preparation for these changes, employers should put in place a reporting register for complaints about all forms of harassment in the workplace to help detect new trends and resolve any issues. Anti-harassment and dignity at work policies should be reviewed, updated, and re-circulated to all staff to ensure they are aware of the standard of behaviour expected of them, equip them with the tools to address such behaviour and raise awareness of the protection available to them. Anti-harassment training should also be reviewed and updated and ensured that this is rolled out as required.

TUPE

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, which came into force on 1 January 2024, allow businesses with under 50 employees doing transfers of any size and businesses of any size doing transfers of under 10 employees, will be able to consult directly if there are no existing representative in place. This is good news for small businesses that are considering corporate transactions and will inevitably speed up the sale process.

Additional protections for women who are pregnant or on maternity leave

Set to be inducted in April, the Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024 shall extend redundancy protection to cover from pregnancy through to 18 months from the first day of the expected week of childbirth, or the date of the baby’s birth. Similar protections will apply to those on adoption leave or shared parental leave. This protection is first refusal on any suitable alternative employment. Whilst this does not mean that those covered by this additional protection can never be made redundant, more care shall be required.

Flexible working legislation

Changes to the flexible working regime will come into force in April, making the right to request a flexible arrangement a ‘day one’ right. The new Employment Relations (Flexible Working) Act also makes changes to the requirements for those submitting a request. Employers will be able to make two requests in each 12 months. The response time for employers will be reduced from 3 months to 2. Employers cannot refuse the request unless they have consulted with the employee. The employee no longer needs to explain the possible effect on the employer and how this would be dealt with. This is a change in favour of employees and increases the burden on employers.

Carer’s Leave

The long-anticipated Carer’s Act shall also come into force in April. Employees will be able to apply for up to one week of unpaid carer’s leave in any 12 months if they have a dependant with a long-term care need and the leave is to provide or arrange care. This is a ‘day one’ right. An employer can request leave is postponed if it would unduly disrupt the business. They must do so before leave starts, must explain why, and must allow leave to be taken within a month of the requested start date. Employees are protected from resulting detriment and dismissal. Employers will need to consider how this will be recorded and whether a policy will be required.

Paternity Leave

The government has published draft legislation entitled the Paternity Leave (Amendment) Regulations 2024 designed to provide more flexibility. The Regulations will apply in all cases where the Expected Week of Childbirth (EWC) is on, or after, 6 April 2024.  The key changes the Regulations make are as follows:

• employees will be able to take two separate one-week blocks (rather than previously having to take in one consecutive period).
• employees will be able to take paternity leave at any time in the 52 weeks after birth or placement for adoption (rather than previously being only able to take this in the first 8 weeks).

employees will only need to give 4 weeks’ notice of their intention to take paternity leave (this is a reduction from the previous 15 weeks which was required before the EWC.

National Living Wage

The National Living Wage will increase by almost 10% following high inflation and the cost-of-living crisis. The change will see it rise from £10.42 to £11.44 per hour from 1 April. For the first time, the increase will be expanded to cover 21 and 22-year-olds, and the national minimum wage rates for younger workers will also rise by £1.11 an hour to £8.60 for 18 to 20-year-olds. Pay for those undertaking apprenticeships will also increase, with an 18-year-old apprentice in industries, including construction, seeing their minimum hourly pay increase from £5.28 to £6.40.

Predictable Terms Act

The Workers (Predictable Terms and Conditions) Act 2023, expected to come into force around September 2024, introduces a new statutory right for workers to request a more predictable working pattern. Any workers who have unpredictable work patterns will have the right to request predictability relating to their working hours, working days and times, and the length of their contract. Two applications may be made each 12 months. There will be 6 statutory grounds to reject – more details to come via the Regulations. An employer will have one month to decide and will not be able to offset the change with other less favourable terms.

Other changes anticipated

Changes are also expected to the law relating to non-compete provisions in employment contracts (restricting their length to three months), the distribution of tips to workers, an instruction of a statutory ACAS Code regarding the practice of fire and rehire (also known as dismissal and re-engagement) and a potential overhaul of whistleblowing. Further details of these provisions and their implementation dates are awaited.

Possible future developments

Aside from the above, other areas may prove to be a significant feature of the employment law landscape in 2024. These include:

1. Artificial intelligence - its impact on the workplace has already been significant, and there is little doubt that this will continue through 2024 and beyond.
2. Strikes and industrial action – These dominated headlines in 2023. With fears of a recession looming and numerous ongoing industrial disputes showing little sign of resolution, industrial action will continue to be a feature of the employment landscape in 2024.
3. General election - The political arena continues to be volatile. With a general election due to be called by January 2025, significant changes in employment law could be on the horizon.
4. Restructuring and redundancy – This continued to feature heavily throughout the last year due to the impact of consecutive interest rate rises.

With some certain developments on the horizon and others which may come to fruition as the year progresses, navigating these upcoming changes requires a proactive approach. Employers should regularly review their policies, obtain legal advice, and communicate effectively with their employees to ensure a smooth transition into the evolving landscape of employment law in 2024. 

If you have any questions regarding these employment changes, please get in touch with the BLHR & Employment Team. We will be happy to discuss how we can help, including under our fixed fee BLHR service.