As 2024 rolls in, so does a swathe of employment law changes. To support employers with understanding the changes, planning for their implementation are and what they mean for their organisation, Kingswood Group has rounded up the major legislative changes in the pipeline for this year.
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Reforming the Right to Request Flexible Working
The Flexible Working (Amendment) Regulations 2023 (SI 2023/1328) comes into force on 6 April 2024. It removes the current requirement for employees to have at least 26 weeks’ continuous service, so that the statutory right to make a flexible working application will become a “day one” right.
In addition, the Employment Relations (Flexible Working) Act 2023 provides for changes to some of the rules on statutory flexible working requests.
What are the main features?
- Allow employees to make two statutory flexible working requests every 12 months (the current limit is one).
- Reduce the time limit for employers to deal with statutory flexible working requests from three to two months (although this can be extended by agreement with the employee).
- Require employers to consult an employee before refusing a request.
- Remove the need for employees to explain the effect of the proposed change or how that could be dealt with when making a request.
Acas has published a new draft code of practice following a consultation process which has not yet be ratified, but is believed to be what is likely to ‘go live’: Acas Code of Practice on requests for flexible working (HTML version) – GOV.UK (www.gov.uk))
What will this mean for employers?
It is more important than ever to get the approach to flexible working right, given the significant change in working models, such as hybrid working, and the competitive advantage for employers in the labour market.
In advance of the legislation taking effect, employers should:
- review their flexible working policies to ensure that they reflect the new requirements;
- train managers on how to handle flexible working requests in light of the new requirements; and
- plan communications to employees to reflect the changes.
Carer’s Leave
The Carer’s Leave Act 2023 comes into force on 6 April 2024. It provides employees who have caring responsibilities for dependants with a long-term care need with a right to one week’s unpaid leave per year.
What are the main features?
- Introduce one week’s unpaid leave each year for employees who are carers, for the purpose of caring for a dependant, or arranging care for a dependant, with long-term mental or physical health needs.
It will be possible to take the leave in periods of a day or half a day.
What will this mean for employers?
Employers should be prepared to incorporate carer’s leave into their family-friendly policies and procedures. The other key aspects of the new right are that:
- carer’s leave will be a “day one” right, meaning that staff will not require a minimum period of service;
- entitlement will depend on the relationship between the carer and the person being cared for, with a focus on dependants with a long-term care need or terminal illness;
- eligible employees will be able to take five days’ carer’s leave per year, as individual or half days; and
- employers will be able to ask employees to self-certify that they are eligible, with no evidential requirements (for example details of the dependant’s condition or caring activities being undertaken).
Pregnancy and Maternity Leave – Extending Redundancy Protection
Employees on maternity leave already have the right to be offered any suitable alternative vacancy in a redundancy situation. The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 provides for greater protection against redundancy during pregnancy and for six months after return to work from maternity leave as well as certain other family-related leave. It comes into force from 6 April 2024.
What are the main features?
- Ensure that the redundancy protection period (the right for pregnant women and new mothers on maternity leave to be offered suitable alternative employment in a redundancy situation) applies from the point that an employee informs their employer that they are pregnant (whether this is done orally or in writing).
- Extend the redundancy protection period until 18 months after the birth of the child (or adoption placement) for employees returning from maternity leave, adoption leave or shared parental leave.
What will this mean for employers?
Employers will need to review their redundancy policies and procedures to ensure that they cover the right for those on maternity, adoption or shared parental leave to be offered any suitable alternative vacancy on redundancy.
HR and line managers implementing a redundancy process will also need to ensure that they take account of the extended redundancy protection period where any employees at risk of redundancy are pregnant or have recently returned to work from maternity, adoption or shared parental leave.
The changes in relation to maternity leave will double the current period of redundancy protection from one year to around two years, assuming the pregnant employee advises the employer of their pregnancy at about the 12-week point and takes one year’s maternity leave. This could substantially increase the number of employees who must be given priority for any suitable alternative vacancy on redundancy, particularly in workplaces where the majority of employees are women.
Strengthening Workplace Sexual Harassment Laws
The Worker Protection (Amendment of Equality Act 2010) Act 2023 provides for a positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment. The Act received Royal Assent on 26 October 2023 and is expected to come into force one year after that date.
What are the main features?
- Introduce a mandatory duty on employers to prevent sexual harassment in the workplace.
- Provide tribunals with the power to increase compensation by up to 25% where a claim of sexual harassment is upheld, and the employer has breached this duty.
What will this mean for employers?
Employers are already liable for harassment carried out by their employees at work unless they have taken “all reasonable steps” to prevent the harassment. However, a positive duty on employers to take steps to prevent sexual harassment should prompt employers to review their policies and procedures to ensure that:
- the equality, diversity, and inclusion policies that they have in place will meet the new requirements;
- those policies are implemented in practice;
- their workforce is made aware of the policies;
- employees and line managers are provided with equality, diversity and inclusion training;
- there is a system in place for dealing effectively with employee complaints; and
- their policies are reviewed as appropriate.
HR professionals should also look out for a new statutory code of practice on sexual harassment. The Equality and Human Rights Commission is developing the new code and is expected to consult on a draft version before it is introduced.
Following amendments to the original Bill, the Act does not introduce employer liability for third-party harassment of employees.
Neonatal Care Leave
The Neonatal Care (Leave and Pay) Act 2023 will provide parents whose babies need neonatal care after birth with up to 12 weeks’ neonatal care leave. The leave will be paid if the parent meets minimum service and pay requirements.
The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent on 24 May 2023. The details of the new right to neonatal care leave will be set out in regulations in due course and is likely to come into force in April 2025.
What are the main features?
- To provide new parents whose baby requires neonatal care for at least seven continuous days, and which starts within 28 days of birth with the right to take up to 12 weeks’ leave in addition to maternity or paternity leave.
- This will be a “day one” right, although pay will be subject to minimum service and pay requirements.
What will this mean for employers?
Employers should be prepared to incorporate this new type of leave into their family-friendly policies and procedures. The other key aspects of the proposed new right are that:
- it will be a “day one” right;
- it is expected to be used mainly to assist new parents whose baby requires neonatal care in hospital;
- it will be available to parents of babies who are admitted up to the age of 28 days, where the baby has a continuous stay in hospital of at least seven full days; and
- statutory neonatal pay, which would be set at the same rate as other family-friendly statutory payments, would have a qualifying period of 26 weeks’ continuous service.
Notice and evidence requirements are expected to be “light touch” to take account of the sensitivity of the situation.
Rolled-up Holiday Pay Allowed for Irregular Hours Workers and Part-Year Workers
Implementation date: For holiday years starting on or after 1 April 2024
The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (SI 2023/1426) came into force on 1 January 2024.
The regulations amend the Working Time Regulations 1998 so that rolled-up holiday pay will be allowed for irregular hours workers and part-year workers. Rolling-up holiday pay involves paying an additional amount representing holiday pay for each pay period throughout the year, instead of paying holiday pay at the time annual leave is taken.
The change will apply to holiday years beginning on or after 1 April 2024.
National Living Wage Extends to 21-year-olds and All Rates Increase
Implementation date: 1 April 2024
The national living wage (the top rate of the national minimum wage) is extended to apply to workers aged 21 and over (before 1 April 2024, the top rate applies to those aged 23 and over).
The national minimum wage rates increase as follows:
- The rate for workers aged 21 or over (the national living wage) increases to £11.44 per hour (previously £10.42 for workers aged 23 or over).
- The rate for workers aged at least 18 but under 21 increases to £8.60 per hour (from £7.49).
- The rate for workers aged 16 to 17 increases to £6.40 (from £5.28).
- The apprentice rate increases to £6.40 (from £5.28).
Direct TUPE Consultation for Small Businesses and Where Fewer Than 10 Employees Transfer
Implementation date: For transfers on or after 1 July 2024
The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (SI 2023/1426) came into force on 1 January 2024.
The regulations amend the Transfer of Undertakings (Protection of Employment) Regulations 2006 so that the requirement to hold elections for employee representatives for TUPE consultation will be removed for small businesses and for transfers of fewer than 10 employees.
Where they do not already have employee representatives in place, employers will be able to consult directly with employees on TUPE transfers:
- if the organisation has fewer than 50 employees (ie small businesses); or
- for organisations of any size, if fewer than 10 employees are to transfer.
The change will apply to TUPE transfers taking place on or after 1 July 2024.
Right to Request More Predictable Terms and Conditions of Work
Implementation date: To be confirmed
The Workers (Predictable Terms and Conditions) Act 2023 gives workers, including agency workers and zero hours workers, the right to request more predictable terms and conditions, including the right to request a predictable working pattern.
The provisions of the Act are subject to secondary legislation (regulations) being introduced and brought into force. The Government has said that it expects the measures to come into force approximately one year after Royal Assent (which happened on 18 September 2023), to give employers time to prepare for the changes.
Statutory Code of Practice on “Fire and Rehire”
Implementation date: To be confirmed
A new statutory code of practice sets out the procedure that employers should follow when proposing to make changes to contractual terms. The code makes it clear that employers must act fairly and reasonably when seeking to make contractual changes and that dismissal and re-engagement should only be used as a last resort.
An unreasonable failure to comply with the code may result in an uplift in any compensation awarded by an employment tribunal of up to 25%.
The Government has launched a consultation on its draft code of practice on dismissal and re-engagement.
Duty on Employers to Give All Tips to Workers Without Deductions
Implementation date: To be confirmed
The Employment (Allocation of Tips) Act 2023 introduces a requirement for employers to give all tips, gratuities, and service charges to workers without any deductions. It also obliges employers to ensure that tips are distributed fairly between workers.
Organisations will need to abide by a code of practice setting out principles of fairness and transparency.
The Government launched a consultation on the draft statutory code of practice on 15 December 2023.
The measures are expected to come into force in 2024, following consultation and secondary legislation.
Gemma Todd
Head of HR Services & Projects
Gemma’s expertise lies in delivering high-quality HR solutions and handling complex employee relations. As a Chartered Fellow of the CIPD, Gemma specialises in employment law and workplace mediation.
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