Every April, the Government reviews and makes changes to employment laws, including a review of financial rates. Below we set out a summary of the proposed changes coming into effect in April and beyond. 

Increased compensation and redundancy 

The weekly pay rate links to many types of claims, in particular, the calculation of statutory redundancy and awards for unfair dismissal. 

The annual increase takes into account inflation meaning 2024 sees a much bigger increase than usual.

From 6 April 2024, the cap on a week’s pay will increase from £643 to £700. This impacts the amount that needs to be paid for statutory redundancy; anyone earning more than this (or £36,400 p.a.) will have their statutory redundancy pay capped at the £700 weekly rate rather than using their actual weekly rate of pay. Anyone earning less than £700 per week will have their statutory redundancy pay calculated based on their actual weekly pay. The maximum amount of statuary redundancy climbs to £21,000; a sum based on age and length of service.

From 6 April, the maximum compensatory award for claims of unfair dismissal will rise from £105,707 to £115,115 (although this is capped at the employee’s annual salary if lower).   

Other changes include; the statutory guarantee pay (for employees who are temporarily laid off) increases from £35 to £38 per day. The basic award for certain types of unfair dismissal increases £7,836 to £8,533.

Increased National Minimum Wage 

On 1^st April 2024 the national minimum wage for workers aged 21 and over increases to £11.44. The age has also been lowered to 21, when previously it applied to those aged 23 years old.

Increased Statutory Sick Pay 

On 6^th April, this increases to £116.75 per week (from £109.40).

Increased Family-Related Statutory Pay 

From 6^th April, the rates of statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory parental bereavement pay and statutory shared parental pay increase to £184.03 per week (from £172.48).

Holiday and holiday pay

Changes to holiday include the introduction of new rules that should greatly simplify the rules for workers who work term-time only and/or are paid by the hour.

Calculation of holiday entitlement 

For leave years starting on or after 1 April 2024, holiday entitlement for some workers will accrue at a rate of 12.07 per cent (or a higher percentage if they are entitled to more than the statutory minimum) of the number of hours worked in each pay period. Provided they meet the new definition of a part-year worker or an irregular-hours worker, this should simplify calculating holiday entitlement.

Rolled-up holiday pay 

Rolled-up holiday pay had been declared as unlawful by the European courts. However, employers of part-year workers and irregular-hours workers will be able to opt to pay rolled-up holiday pay; an uplift to pay of 12.07 per cent for holiday pay; rather than calculating and paying holiday pay at the time the worker takes holiday.

Tips 

This change is likely to come into force on 1 July 2024. Currently, cash tips usually seen as the property of the worker they are paid to. Card payments are usually seen as belonging to the employer.

The purpose of this change is to ensure that 100% of the electronic tips are dealt with in a fair and transparent way.  Employers will also be required to pay tips to its workers no later than the end of the month the tips were made. 

Employers will also need a written policy on tips, and to keep a record for 3 years as to how tips have been dealt with. If needed, employees (and agency workers) will have the right to request information relating to the tipping records. 

TUPE changes 

Transfers taking place on or after 1 July 2024, will see different rules apply. 

Employers will have the option to consult directly with staff (rather than elect employee representatives), if:

·        the organisation has fewer than 50 employees, or

·        if fewer than 10 employees will transfer regardless of the size of the organisation.

Currently this option is only available to employers of fewer than 10 employees.

Duty to prevent sexual harassment  

From October 2024, employers will be obliged to take reasonable steps to prevent the sexual harassment of their employees during employment. Tribunals will be able to increase compensation by up to 25 per cent if this duty is breached.

Predictable working 

It is expected that, in approximately, September 2024, a new statutory right for workers will be introduced allowing them to request a more predictable working pattern.

It will be relevant for those whose existing working patterns are uncertain in relation to the hours or times they work, e.g. casual workers, those on annualised contracts and those on a fixed term contract of 12 months or less.

The government has indicated the qualifying period for this right will be 26 weeks’ service, but workers will not need to have worked continuously.

There will be a procedure to follow (akin to a flexible working request). ACAS has launched a draft Code of Practice (available here) which will address the handling of such requests. It is anticipated that the Code will not be legally binding.

Family Friendly Rights 

The Carer’s Leave Act 2023 

This legislation will come into force on 6 April 2024. This will allow employees the right to take one week of statutory unpaid carer’s leave in a 12 month period, to care for (or arrange care for) a dependent with long-term care needs.

This is a ‘day one’ right. The leave can be taken as half days or full days and does not need to be taken on consecutive days.

Notice needs to be provided by the employee and there are rules around allowing an employee to postpone the leave.  Any dismissal of an employee connected to them taking carer’s leave will be automatically unfair. 

Protection from Redundancy (Pregnancy and Family Leave) Act 2023 

Currently, those on maternity, adoption or shared parental leave have the right to be offered suitable alternative employment (if it exists) during a redundancy situation, but is limited to the duration of the leave.

This new legislation extends this protection to: 

·        include pregnant employees; covering them from when they inform their employer of their pregnancy; and

·        those who have recently returned from maternity, adoption or shared parental leave (where the shared parental leave is greater than six weeks). Under these new laws, they will have the protection extended to until the child is 18 months old for natural births or 18 months from adoption.

Failure to follow this will give the employee the right to bring a claim for automatic unfair dismissal. 

Paternity Leave (Amendment) Regulations 2024 

The changes to Paternity leave for children born or adopted on or after 6 April 2024 aim to make paternity leave less stringent by:

·        Allowing employees to take paternity leave as two one-week blocks (instead of the current one block of one or two weeks);

·        Letting employees take the leave within the child’s first year following the birth or adoption (rather than it being within the current first eight weeks); and

·        Only requiring 28 days’ notice to take paternity leave (rather than the current 15 weeks’ notice). 

Employment Relations (Flexible Working) Act 2023 

Flexible working laws will change this year. The important amendments from 6 April 2024 are:

1. The right to request flexible working will now be a day-one right.
2. A decision must be made by the employer within two months. 
3. An employee will be able to make two requests within a 12-month period (instead of just one). 
4. As part of the request, employees no longer need to explain how the change will affect the employer or explain how to deal with that change. 

ACAS has published a draft Code of Practice on requests for flexible working arrangements which can be found here.

Summary 

You should take steps to ensure that you understand your new obligations. And you should review and update any relevant policies.

If you would like any advice or assistance with the above, please contact the writer, Matthew Kilgannon on mk@kilgannonlaw.co.uk.

Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.

We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

Disclaimer 

The above provides a general overview of areas in employment law and is not intended nor construed as providing specific legal advice.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

20.03.24