Employment Law Changes – Employers, Are You Ready?

A number of employment law changes are coming into effect in April 2024 and it is important that employers are prepared. Nigel Targett, Employment Partner summarises these changes in the below article.

If you would like to seek advice on any of the changes highlighted in this article or another Employment Law related matter then please contact Nigel on nigel.targett@coolebevisllp.com or call him on 01903 534510.

Eligible employees will be able to take Statutory Carer’s Leave from their first day of employment

The Carer’s Leave Act 2023 gives employees the right to take a maximum of 1-weeks’ unpaid carer’s leave per year. This will be a right that eligible employees have from their first day of employment. Eligible employees include those who care for a dependant with a long-term care need. Although this leave can be flexible, employees will be required to give a minimum notice period to their employers.

Note that employers cannot request evidence or decline the leave, however, leave may be postponed.

Flexible working requests will become more accessible

The Employment Rights (Flexible Working) Act 2023 changes the current law on flexible working.

Currently, employees are only allowed to make one flexible working request per year, and this can only be made after 6 months of service. Under the new changes, employees are able to make up to two flexible working requests per year, and this is a right from day one of employment. Employees will no longer have to explain the effect they think this change will have on their employer.

Employers will have a legal duty to consult with employees about their requests and to make a decision about any request within two months (previously three months). The reasons employers may refuse a flexible working request remain the same, but they will have to provide the employee with an explanation, whereas previously, this was not a requirement.

Legal protection from redundancy will be extended for pregnant employees

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 means that if employers were ever to consider making redundancies, they would need to take steps to help to keep their pregnant employees in work before anyone else. This protection covers the period from when employees inform their employer about their pregnancy, up until 18 months after the birth of their child. This law is also applicable to those who take maternity, adoption or parental leave.

Failing to follow this may lead to possible claims for sex discrimination, unfair dismissal and uncapped compensation.

Employees working irregular hours will accrue holiday entitlement

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 means there will be a new system for those with irregular hours or who work part of the year.

Under the new changes, workers with irregular hours or who work part of the year will accrue holiday entitlement at the end of each pay period at the rate of 12.07% of hours worked and can be paid holiday pay on a rolled-up basis (i.e. by way of a supplement to basic bay) if the employer chooses. These are significant changes for those who engage these types of workers.

National minimum wage rates will rise and the 21-22 age band will be withdrawn

Currently, workers aged 23 and over receive the highest rate of pay for national minimum wage. There is a lower rate of pay for workers who are 21 and 22. Under the new changes, this band is going to disappear – pushing 21 and 22-year-olds into the highest band bracket.

The new rates of national minimum wage are as follows:

1. Those over compulsory school age but not yet 18 will increase by 21% to £6.40 per hour
2. Apprentices aged 19 and under will increase by 21% to £6.40 per hour
3. 18–20-year-olds will increase by 15% to £8.60 per hour
4. 21 and over will see an increase of 9% to £11.44 per hour

Fathers will have greater flexibility over when they can take Paternity Leave

Employees will have new rights where a baby’s expected week of childbirth is on or after 6 April 2024 or where children are expected to be placed with an adopter, this occurs on or after that date.

Currently, employees are entitled to two weeks’ paternity leave. They have to take either two weeks’ consecutive leave, or just one week.

Under the new changes, employees can take their two weeks’ entitlement either as two weeks consecutive, or as two separate blocks at any time during the 52 weeks after birth or adoption. They will, however, have to give 28 days’ notice of their intention to take paternity leave.

The current six-month qualifying period, overall limit of 2 weeks’ leave and low levels of statutory payment will continue.

What action should employers take?

In light of the above changes, I recommend that Employers:

1. Review their relevant procedures
2. Update their policies and employee handbooks
3. Create new policies where relevant to reflect any new rights
4. Offer training
5. Update their software where appropriate.