Employment Law Changes in 2024: What Employers Need To Know
In 2024, a wave of employment law changes has already come into effect, reshaping the workplace for UK employers. These updates—ranging from flexible working as a day-one right to new protections against sexual harassment—are now part of daily business operations.
Employers must remain informed and ensure their practices align with the latest regulations to stay compliant and avoid penalties.
To help your business handle these changes smoothly, The HR Consultants are here to provide expert support and ensure your HR policies are up to date. Contact us for guidance today.
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Table of Contents
Key Employment Law Changes in 2024
Family Leave, Maternity Leave, and Parental Rights
Pay and Employment Status
Legislative and Policy Developments
National Minimum Wage and Fair Pay Practices
Preparing for the Future
Frequently Asked Questions
Key Employment Law Changes in 2024
The employment landscape in 2024 has seen major shifts that affect employers across the UK. These changes are designed to improve worker rights, enhance flexibility, and increase protections.
Employers must stay informed about these updates to ensure compliance and avoid any potential legal pitfalls.
Flexible Working and Day One Rights
One of the biggest changes to employment law in 2024 is the right to request flexible working from the first day of employment. This removes the previous 26-week qualifying period, making it easier for employees to seek flexibility as soon as they start.
This is particularly important for workers with family commitments or other personal needs that require more adaptable working hours.
Additionally, employees can now submit up to two flexible working requests within a 12-month period, rather than just one. Employers are required to respond to these requests within two months, shortening the previous three-month timeframe.
This promotes faster decision-making, allowing businesses to adjust more efficiently to employees’ needs.
Predictable Working Patterns for Irregular Hours Workers
For workers on zero-hour contracts or those with irregular hours, new rights to request a more predictable working pattern have come into effect. These laws are designed to give more stability to workers in sectors like hospitality, where hours often vary from week to week.
Workers can now seek more certainty regarding their schedules, helping them balance work with personal commitments.
Employers must respond to requests for a predictable working pattern within one month.
While these changes give employees more control over their working hours, businesses retain the flexibility to deny requests if they can demonstrate that a more predictable schedule isn’t feasible for operational reasons.
Changes to Sexual Harassment Laws
As of October 2024, new regulations place a legal duty on employers to take all reasonable steps to prevent sexual harassment in the workplace. This includes creating a safe environment where employees feel protected from inappropriate behaviour.
Businesses must now have clear policies in place to deal with harassment and take proactive measures to mitigate risks.
Failure to meet these obligations can lead to significant consequences.
Employers who do not comply may face tribunal claims, and there is a potential for compensation awards to be increased by up to 25%, further emphasising the importance of adhering to these new laws.
Fair Pay and Tipping Laws
Under the new tipping laws introduced in 2024, employers in the hospitality sector must ensure that tips are distributed fairly among staff. Withholding or unfairly distributing tips is now illegal, and all service charges must go directly to the workers.
This change is designed to protect the rights of hospitality workers and ensure fair compensation for their service.
Non-compliance with these regulations can result in legal action, including employment tribunals, which may lead to the business being required to compensate affected staff.
Employers should update their tip distribution policies to reflect these new requirements to avoid potential disputes.
Family Leave, Maternity Leave, and Parental Rights
In 2024, significant changes have been made to family-related employment rights, offering greater protections for employees during critical life events. These updates impact how employers handle redundancy for pregnant workers, as well as the flexibility available for paternity and family leave.
Extended Protection for Pregnant Employees
In 2024, the protection against redundancy for pregnant employees and those on maternity leave was significantly strengthened.
These changes provide greater job security during a vulnerable time and require employers to update their redundancy policies.
- Employees are protected from redundancy from the moment the pregnancy is announced, lasting up to 18 months after the child’s birth.
- This protection extends beyond the maternity leave period.
- Employers must offer suitable alternative employment before considering redundancy.
- Businesses should review and update their employment policies to remain compliant and avoid potential legal claims.
Paternity Leave and Family Leave Reforms
Changes to paternity leave now offer greater flexibility to employees. Fathers or partners can split their two-week leave into separate blocks, giving them more control over their time off.
Additionally, they now have up to a year to take this leave, rather than being restricted to the first eight weeks after the child’s birth.
The reforms also extend to family leave, making it easier for employees to balance work and family commitments.
Employers must ensure they are fully aware of these new entitlements, adjusting their leave policies to comply with 2024’s employment law changes.
Carer’s Leave Entitlement
As of 2024, employees are entitled to take up to one week of unpaid carer’s leave per year to care for a dependent. This applies to those caring for a spouse, civil partner, child, parent, or any other dependent who requires care due to a long-term condition or disability. Importantly, this right is available from day one of employment, with no qualifying period required.
The Carer’s Leave Act 2023 and associated regulations introduced these entitlements, aiming to support employees with caregiving responsibilities.
Pay and Employment Status
The year 2024 has brought about several key changes regarding employee pay and the classification of workers. From mandatory pay gap reporting to updates on statutory sick pay, these developments impact businesses of all sizes, requiring them to adjust their payroll and HR processes.
Gender Pay Gap and Pay Gap Reporting
In 2024, gender pay gap reporting remains mandatory for businesses with over 250 employees. There are discussions about extending this requirement to include ethnicity pay gap and potentially disability pay gap reporting, increasing the focus on pay transparency.
- Businesses must prepare for stricter scrutiny on pay equity across various demographics.
- The potential expansion will require improved data collection and analysis to meet government standards.
- Employers should stay ahead of these developments to avoid penalties and ensure they are practising fair pay across their workforce.
Statutory Sick Pay and Holiday Pay
Changes to statutory sick pay (SSP) now require employers to pay SSP from the first day of an employee’s sickness, removing the previous waiting period.
This increases the cost burden on businesses, particularly those with a high number of employees on lower earnings.
Additionally, the rolled-up holiday pay ruling now means that holiday pay must be paid separately, rather than included in the regular wage, affecting businesses with casual or seasonal workers.
The lower earnings limit has also been updated, affecting which workers are eligible for SSP and other benefits.
Employers should review their payroll systems to accommodate these changes and ensure compliance with the new regulations.
If you have an employee on long-term sick leave, we have a guide on how you can manage the situation effectively.
Legislative and Policy Developments
In 2024, various employment law changes have been implemented through new legislation and policies, affecting how businesses handle their workforce. These updates focus on everything from employment status to increased employment tribunal cases, signalling the need for employers to remain aware of their evolving responsibilities.
The Impact of the New Labour Government
The new Labour government has introduced major changes to employment status and unfair dismissal laws. Workers now enjoy day one protection against unfair dismissal, shifting the dynamics of recruitment and probation periods for businesses.
- Employers may need to reconsider their hiring and probation processes due to the increased risk of tribunal claims.
- The government is also pushing for a single worker status, simplifying the current system and granting all workers the same rights, regardless of their contract type.
Upcoming Changes to Employment Tribunals
Referring to The King’s Speech 2024, the new employment rights bill is set to see an anticipated rise in employment tribunal cases throughout 2024. Increased rights for employees, including family leave and statutory sick pay updates, mean more claims are likely to arise from disputes.
Employers will need to ensure their policies are airtight to avoid falling foul of the updated regulations.
With these changes in employment legislation, employers should expect tribunals to deal with more complex cases, especially around discrimination, harassment, and unfair dismissal claims. Staying proactive with compliance is key to managing the potential risks.
National Minimum Wage and Fair Pay Practices
The 2024 employment law changes also included updates to the national minimum wage and guidelines for fair pay distribution. Employers must ensure they are in line with these regulations to maintain compliance and avoid penalties.
National Minimum Wage Increases
In 2024, the national minimum wage saw a substantial increase, impacting a wide range of industries. Employers must adjust their pay structures to ensure all eligible workers receive the correct updated rate.
- Retail: Particularly affected due to the large number of lower-wage employees.
- Hospitality: Significant impact as many workers rely on minimum wage pay.
- Adult Social Care: This sector will need to reassess pay scales to meet the new wage standards.
- Agriculture: Often employing seasonal workers at lower rates, businesses here must review their pay practices.
Fair Pay Agreement and Equal Pay Claims
The fair pay agreement introduced this year aims to ensure equity in the workplace. Additionally, there is a stronger focus on tackling equal pay claims, with the government enhancing measures to address pay disparities.
Employers need to regularly review their pay policies to ensure they are meeting these new requirements and avoid potential legal claims related to equal pay.
Preparing for the Future
To ensure compliance with the employment law changes introduced in 2024, employers must review and update their existing policies. From flexible working to holiday pay and statutory sick pay, these updates require careful attention to prevent any legal risks.
It’s also important to stay informed about the employment law changes that came into effect in April 2024 and ensure all employee rights are respected.
Taking these steps will protect your business and create a fair and transparent workplace.
Talk to the Experts
For expert guidance on how to comply with the latest laws, get in touch with us today.
Our team can help you implement the necessary changes and avoid potential legal challenges.
Frequently Asked Questions
Here are some common questions about the employment law changes in 2024, along with clear answers to help employers understand the key updates.
What is the new right to request flexible working?
In 2024, employees can now request flexible working from day one of employment, with the ability to submit two requests per year. Employers are required to respond within two months and must provide a valid reason if the request is denied.
The aim is to create a more adaptable work environment for all employees, especially those with caregiving responsibilities.
How have the rules around tips and gratuities changed?
The new tipping laws ensure that all tips, service charges, and gratuities are fairly distributed to workers without deductions. This change primarily impacts the hospitality industry, where tips are a significant part of workers’ income.
Employers who fail to comply with these laws could face tribunal claims and may be required to adjust their tip allocation processes.
What are the changes to statutory sick pay?
Statutory sick pay (SSP) is now payable from the first day of sickness, removing the previous four-day waiting period. This means businesses must be prepared to cover SSP from the outset of an employee’s illness.
Employers should review their sick pay policies to accommodate this change and ensure payroll systems are up to date.
What protections do pregnant employees now have against redundancy?
Pregnant employees and those on maternity leave are now protected from redundancy for up to 18 months from the notification of pregnancy. Employers must offer suitable alternative employment before considering redundancy.
This change aims to provide greater job security for pregnant employees and prevent discrimination during the redundancy process.
How will the changes affect employment tribunal cases?
The 2024 employment law changes are expected to increase the number of employment tribunal cases, particularly around issues like unfair dismissal, sexual harassment, and flexible working disputes.
Employers should ensure their policies are compliant with the new regulations to minimise the risk of facing tribunal claims.