Employment Law Updates from April 2024 onwards
In April 2024, numerous updates in employment law took effect, including increases in minimum and living wage rates, modifications to paternity leave, and revisions in how holiday pay is calculated. This summary highlights the key changes that employers need to consider and potentially integrate into their current policies.
Changes to Minimum and Living Wage Rates
The UK Government has adopted the Low Pay Commission’s recommendations and announced updated rates for the National Living Wage (NLW) and National Minimum Wage (NMW), effective from April 2024. Here are the key changes:
- The National Living Wage for those aged 21 and over will increase by £1.02 to £11.44, marking a 9.8% rise.
- The rate for 18-20 year olds will increase by £1.11 to £8.60, a 14.8% increase.
- For 16-17 year olds, the rate will jump by £1.12 to £6.40, reflecting a 21.2% increase.
- The Apprentice Rate will also rise by £1.12 to £6.40, matching the 21.2% increase.
- Additionally, the Accommodation Offset will increase by £0.89 to £9.99, a 9.8% rise.
Changes to Paternity Leave
Statutory paternity leave in the UK has been made more flexible for employees expecting a child or an adoption placement after April 6, 2024. Here’s a summary of the new provisions:
- Employees can now split their paternity leave into two separate one-week periods, which can be used at any point during the first year following the child’s birth or adoption.
- Those planning to take paternity leave are required to notify their employer 28 days in advance, or within seven days after being matched for adoption.
- Furthermore, employees must still provide notice about their eligibility for paternity leave 15 weeks before the expected week of childbirth.
Redundancy Protection for workers on maternity, adoption or shared parental leave
Effective from the 6th of April, redundancy protections previously available to employees on maternity, shared paternity, or adoption leave have been broadened. Now, pregnant employees who have notified their employer of their pregnancy, as well as those returning from long-term family leave such as maternity, adoption, or statutory parental leave lasting over six weeks, are also included under these protections. This protection now lasts for 18 months following childbirth or adoption, covering periods when the employee has returned to work.
This enhancement significantly increases the duration of priority status for eligible employees, which could lead to a higher number of employees being safeguarded in redundancy situations. Although no immediate changes are required, it’s crucial for employers to carefully consider this extended protection when planning redundancies. Ensuring that alternative positions are offered to all protected employees is essential to avoid potential legal challenges, including claims of unfair dismissal or discrimination.
Right to request flexible working from Day 1
Starting from the 6th of April 2024, all employees can request flexible working from their first day of employment, eliminating the previous six-month service requirement. Key changes also include:
- Employees are entitled to make two flexible working requests within a 12-month period, though requests must be made sequentially.
- Employers have a two-month deadline to respond to these requests.
- Before denying any request, employers are required to hold a consultation with the employee.
- Employees are no longer required to justify the impact of their request on their work.
- The revised statutory Acas Code of Practice concerning flexible working requests is now in effect and employers are advised to comply with it. While non-compliance with the Acas Code does not itself result in legal consequences, Employment Tribunals will take it into consideration during relevant legal proceedings.
Changes to holiday pay and entitlement calculations
Starting from April this year, employers can choose from two new methods for calculating holiday pay for workers with irregular or part-year schedules:
- Accrual Method: Employers can now calculate annual leave based on an accrual rate of 12.07% of the hours worked during a pay period.
- Rolled Up Holiday Pay: This method allows holiday pay to be included in the regular hourly wage paid at the time of work, rather than during actual holiday leave.
Updated government guidance from April 1, 2024, clarifies the criteria for determining part-year worker status. The guidance has removed a previous example involving “Ian,” a worker who was paid annually but worked only part of the year. The revised guidance now suggests that individuals might qualify as part-year workers if they are paid during periods they are not expected to work, and not paid specifically for those periods. This update does not change the underlying laws but expands the potential for more workers to be recognised as part-year workers under the statutory definition.
Carer’s Leave Regulations 2024
The Carer’s Leave Regulations 2024 have been implemented, providing employees the right to request up to one week of unpaid leave annually to care for a dependent with long-term needs. Key details include:
- Employees can take this leave from their first day of employment, with no prior service required.
- The leave is flexible; it can be taken in increments as short as half a day and does not need to be consecutive.
- Notification requirements state that employees must provide notice either twice as long as the leave they request or three days, whichever is greater.
- Employers have the authority to delay the leave if it would significantly disrupt operations, but they must accommodate it within a month of the original request.
- Proof of the necessity for leave is not required from the employee, nor can employers demand such proof.
- Protection against any negative consequences or dismissal is assured for employees who take this leave.
