Navigying the Landscape: Employment Law Changes in the UK for 2024

As we enter 2024, the UK employment law sector is set to undergo several transformative changes.

These adjustments span from post-Brexit reforms to anticipated legislative shifts, offering a comprehensive overview of the evolving legal landscape.

This guide will illuminate key alterations, emerging cases, and potential implications that employers and employees should be aware of.

Post-Brexit Employment Law Changes Effective January 1, 2024

The introduction of the Retained EU Law (Revocation and Reform) Act marks a significant shift in UK employment law post-Brexit.

While the Act preserves some key EU case law decisions related to holiday pay and non-discrimination, several notable changes will come into effect:

New Regulations on Holiday Entitlement and Pay

Full Normal Pay for Holidays: Employers are required to maintain full normal pay for at least four weeks of an individual’s holiday entitlement.
Carry-Forward of Holiday Entitlement: Workers will be permitted to carry forward unused holiday entitlement in specific circumstances.
Inclusion of Overtime and Commission: Holiday pay must now account for overtime, commission, and allowances.

Amendments to the Equality Act 2010

Preservation of EU Case Law Effects: Changes aim to retain the effects of EU case law, especially in areas such as indirect discrimination, recruitment practices, and workplace breastfeeding.
Expanded Scope for Claims: The amendments increase the scope for claims in certain areas, raising awareness among employers and employees.

TUPE Consultation and Working Time Record Keeping

Modest Adjustments: Changes have been made to reduce reliance on EU case law concerning TUPE (Transfer of Undertakings (Protection of Employment)) consultation obligations and working time record-keeping.
Potential for Interpretation Challenges: Although these changes represent a step towards divergence from EU principles, they may lead to uncertainties in interpreting UK laws without EU guidance.

Developments in Early 2024

Draft Code of Practice on ‘Fire and Rehire’

Response to Scrutiny: A draft code of practice addressing ‘fire and rehire’ practices is expected to be finalized early in 2024.
Impact on Contractual Terms: This code will influence changes to contractual terms and offer greater protection for employees.

April 2024 Employment Law Changes

National Living Wage Increase

New Rate: From April 1, 2024, the National Living Wage will rise to £11.44 per hour.
Impact: This increase will have a significant effect on minimum wage levels and the living wage gap.

Introduction of New Holiday System for Irregular Hours

Holiday Accrual: A new system for workers with irregular hours or seasonal employment will be introduced. Workers will accrue holiday entitlement at a rate of 12.07% of hours worked.

Flexible Working Requests from Day 1

Enhanced Right: Starting April 6, 2024, employees will have the right to request flexible working arrangements from the first day of employment.
Increased Prominence: This reform highlights the importance of the right to request flexible working.

Introduction of Carer’s Leave

Statutory Right: Effective April 6, 2024, employees will be entitled to one week of unpaid leave to care for dependents.
Policy Updates Required: Employers will need to update policies, maintain accurate records, and ensure that people managers are aware of this change.

Redeployment Priority for Maternity Returners

Increased Protection: Pregnant or returning employees will gain priority status for redeployment in redundancy situations from April 6, 2024.
Enhanced Employee Protection: This change will provide greater security for employees during redundancy processes.

Minor Changes to Paternity Leave

Flexible Leave: Expected in April 2024, paternity leave will be available at any time during the first year and can be taken in two separate one-week blocks.

Employment Law Changes from May 2024 Onwards

New Law on Fair Distribution of Tips

Effective Date: Anticipated to come into effect on July 1, 2024.
Impact on Hospitality Sector: This new regulation will significantly affect the hospitality industry by ensuring fair distribution of tips among staff.

Statutory Right to Request Predictable Working Pattern

Implementation: Expected in September 2024, this law will grant workers the right to request a more predictable working pattern.
Employer Rights: Employers will retain the ability to reject requests based on business needs.

Worker Protection Act from October 26, 2024

Preventive Measures: The Act will mandate proactive measures to prevent workplace sexual harassment.
New Guidance: The Equality and Human Rights Commission (EHRC) will release updated guidance or a Code of Practice to support compliance.

Data Protection and Digital Information Bill

Expected Passage: The Bill is expected to pass in 2024, aiming to ensure data protection adequacy while relaxing certain areas beneficial to employers.

New Right to Neonatal Leave

Potential Implementation: Expected to be introduced by April 2025, with potential earlier implementation.
Expansion of Family Leave: This new right will expand the range of family-related leave available to employees.

Impact of the General Election in 2024

Labour Victory Expectations

Election Timing: A general election is anticipated in Autumn 2024, with Labour currently leading in polls.
Potential Proposals: Labour’s victory could result in significant changes, including modifications to dismissal rights, employment status frameworks, zero-hours contracts, trade union rights, harassment laws, and the introduction of pay gap reporting.

Expectations for Employment Law in Northern Ireland

Divergence from UK Laws

Potential Differences: The legal landscape in Northern Ireland may diverge further from the rest of the UK.
Uniform Application: Changes might not uniformly apply, creating a distinct legal environment in Northern Ireland.

In Summary: A Dynamic Year Ahead

Employment Challenges

Substantial Changes: 2024 promises significant changes in employment legislation, coupled with challenges such as enforcing return-to-office policies, managing cultural conflicts, and adapting to AI advancements.

Labour Victory Implications

Extensive Overhaul: If Labour secures victory, extensive changes to employment law could occur. Employers should prepare for potential changes by monitoring party manifestos and seeking legal guidance.

As 2024 progresses, remaining vigilant and adaptable will be crucial for businesses navigating the evolving landscape of UK employment law. Our legal team is prepared to offer support, ensuring a smooth transition through the anticipated changes and challenges.