What are the Key UK Employment Law Changes in 2024?

2024 has already seen a number of key UK employment law changes, including reforms which aim to improve workplace conditions and protect employee rights. Businesses in the UK should be aware of the following changes for 2024:

1. Expansion of flexible working rights
2. Changes to the rules on carer’s leave
3. Extended protection period for redundancy during parental leave
4. Flexible paternity leave
5. New rules on sexual harassment prevention in the workplace
6. Changes to the calculation of holiday pay entitlements
7. National minimum wage increase
8. New ‘‘fire and rehire’’ code of practice

Change 1 – Expansion of flexible working rights

As of 6 April 2024, employees have the legal right to request reasonable, flexible working arrangements from day one of their employment. Under the previous rules, employees had to wait until they had been continuously employed for at least 26 weeks to make a flexible working application. 

Flexible working application requests may include changes to the number of hours worked, start or finish work hours, the days worked, part-time work, job sharing and remote work arrangements. Employers must respond to these requests within two months and provide valid reasons for any refusal. Employers can only refuse such a request if they have a valid reason which may include the following:

• Extra costs will damage the business
• The work cannot be reorganised among other staff
• People cannot be recruited to do the work
• Flexible working will affect performance
• The business will be unable to meet customer demand
• There is a lack of work to do during the proposed working times
• The business is planning changes to the workforce

Under the Employment Rights (Flexible Working) Act 2023:

• If the employer decides to accept a request for flexible working then they must provide a written statement of agreed changes with a start date for the new flexible working arrangements.
• Employees may make only two flexible working requests in any 12-month period
• Employers must consult with their employees before refusing their request, and
• Employees do not need to explain what effect they think their flexible working request will have on the business.

Change 2 – Changes to the rules on carer’s leave

Under the Carer’s Leave Act 2023 and Carer’s Leave Regulations 2024, as of 6 April 2024, employees are entitled to one week of unpaid carer’s leave each year to care for dependents with long-term care needs. This includes dependents with:

• A physical or mental illness or injury that requires care for more than 3 months
• A disability that meets the definition in the Equality Act 2010
• Care needs as a result of their old age

This entitlement:

• Available from day one of employment. 
• Can be taken flexibly, offering much-needed support to working carers.
• Does not require the dependent to be a family member
• Is separate from unpaid parental leave, and
• Can be taken in individual days or all once

Workers who wish to request any carer’s leave must state how much carer’s leave they need. The government’s guidance states that if the request is for half a day or a day then the notice period must be at least 3 days. If the request is for more than one day then the notice period must be at least twice as long as the requested leave. For example, if the request is for 2 days then the notice period must be at least 4 days. If an employee needs to look after someone in an emergency, however, then there is no need to meet the notice period requirement.

Change 3 – Extended protection period for redundancy during parental leave

From 6 April 2024 the protection from redundancy period for pregnant employees or those taking maternity leave has been extended as follows:

• Protection from redundancy has been extended to pregnant employees, not just employees on maternity, adoption, or shared parental leave. 
• Employees on maternity, adoption, or shared parental leave have enhanced redundancy protection for up to 18 months. 
• If an employee does not inform their employer of the exact date of birth of their child, the protected period ends 18 months from the expected week of childbirth.
• Protection from redundancy starts from the date that an employee notifies their employer regarding their pregnancy and continues until 18 months after the child’s date of birth. 
• Employers must offer suitable alternative employment to these employees before considering redundancy,
• If no suitable vacancy is available then those on parental leave can still be made redundant.

Employees who have yet to start their maternity leave and notify their employer of their pregnancy before 6 April 2024 are also covered by the protection from redundancy. They are advised, however, to inform their employer again.

It is now important for employers to review their redundancy procedures and ensure that they comply with the extended protection period. This might involve updating HR policies and conducting training sessions for managers.

Change 4 – Flexible paternity leave

From 6 April 2024, fathers can split their two weeks of statutory paternity leave into two separate blocks and take them at any time within the first year of the child’s birth. This change offers more flexibility for new parents to balance work and family responsibilities.

Employers will need to adjust their holiday policies and payroll systems to accommodate this new flexibility in paternity leave. This includes the requirement for employees to give only 28 days of notice to change the start date of their paternity leave.

Change 5 – New rules on sexual harassment prevention in the workplace

From 27 October 2024, employers will have a statutory duty to take reasonable steps to prevent sexual harassment in the workplace under the Worker Protection (Amendment of Equality Act 2010) Act 2023. This includes implementing robust policies, providing training and ensuring a safe reporting mechanism.

Under these changes, employment tribunals will be able to increase compensation by a quarter, i.e. 25%, if employers breach this new statutory duty.

Change 6 – Changes to the calculation of holiday pay entitlements

Changes to the Working Time Regulations introduced in January 2024 have changed how holiday entitlements are calculated for irregular and part-year workers. The new rules aim to provide a fair calculation method based on actual hours worked. The changes are as follows:

• A new method for calculating statutory holiday entitlement for irregular hours and part-year workers (which will apply to holiday years beginning on or after 1 April 2024)
• A new method for working out how much holiday an irregular hour or part-year worker has accrued when they take maternity or family-related leave or are off sick (which will apply to holiday years beginning on or after 1 April 2024)
• Maintaining the current rates of holiday pay where 4 weeks is paid at the normal rate of pay and 1.6 weeks paid at the basic rate of pay, while retaining these 2 distinct pots of holiday 
• Defining what is considered ‘‘normal remuneration’’ in relation to the 4 weeks of statutory annual holiday and
• Introducing rolled-up holiday pay as an alternative method to calculate holiday pay for those who work irregular hours and part-year workers (which will apply to holiday years beginning on or after 1 April 2024).

Employers may need to update their payroll systems to comply with these new calculation methods and communicate these changes to their employees. Ensuring transparency and accuracy in holiday pay calculations is crucial to avoiding disputes.

Change 7 – National Minimum Wage Increase

The National Minimum Wage saw its largest-ever increase on 1 April 2024. The new rates will rise significantly, affecting all age groups and apprentices.

Category	New Rate (per hour)
Apprentices	£6.40
Ages 16-17	£6.40
Ages 18-20	£8.60
Ages 21+	£11.44

Employers must budget for these increased wage costs and ensure their payroll systems are updated. Regular reviews of pay structures and compliance checks will be necessary to meet these new legal requirements.

Change 8 – New ‘‘Fire and Rehire’’ code of practice

A new statutory code of practice on dismissal and re-engagement, commonly known as ‘‘fire and rehire’’, will be introduced in mid-2024. A draft version can be found on the government website. This code aims to regulate the controversial practice of re-engaging employees on less favourable terms. This came following the firing of 800 workers by P&O Ferries in March 2022.

As the draft code explains; “The Secretary of State considers that the practice of dismissing and re-engaging employees (sometimes referred to as ‘‘fire and rehire’’) as a means of changing their terms and conditions of employment can give rise to conflict between employers, employees and trade unions, which can lead to a deterioration in industrial relations. This Code is intended to provide practical guidance on avoiding, managing and resolving such conflict and disputes”. 

Employers should familiarise themselves with the new code and review their employment practices to ensure they do not violate the guidelines. Legal advice may be necessary to navigate complex cases involving dismissal and re-engagement.

Final words

This article covers some of the wide-ranging reforms that will shape the future of work in the UK. There are other changes with which employers should make themselves familiar, including:

• New rights for those on zero-hours contracts and other atypical working patterns to request more predictable working patterns in September 2024.
• New rules on the distribution of tips in the workplace in October 2024
• Amendments to neonatal care leave and pay in early 2025

Employers will need to stay informed and be proactive in implementing these changes to ensure their compliance with them and foster a supportive work environment. It will also be interesting to see whether the new Labour government will introduce any new changes to employment legislation later in 2024. During their campaign they announced a ‘‘new deal for working people’’, including a ‘‘genuine living wage’’, more flexible working, changes to trade union legislation and the ending of zero-hour contracts and the practice of ‘‘fire and rehire’’. We will keep you updated on all of the latest developments in employment law as they are announced.