In April, employers are advised to prepare for significant legislative updates that will impact various aspects of employment law. These changes, ranging from adjustments in the National Living Wage to new rights regarding carers and paternity leave, will require prompt action and policy revision within your organisation. This blog will help you to understand these updates, ensuring you remain compliant and supportive of your workforce’s evolving rights.
National Living Wage and Minimum Wage Adjustments
Effective from 1 April 2024, we will see an increase in the National Living Wage (NLW) and National Minimum Wage (NMW) rates. Notably, the NLW will now apply for those aged 21 and over and will rise to £11.44 per hour. Additional adjustments include increases for younger workers and apprentices, as follows:
- 18-20 rate: £8.60/ hour
- 16-17 rate: £6.40/ hour
- Apprentice rate: £6.40/ hour
An amendment to the NMW exemptions will also come into play, ensuring domestic workers living with their employers are entitled to minimum wage, marking a significant step towards broader employee rights. It is important to note that this only applies to those who are not family members. The exemption for live-in family members remains in force. Therefore, it is important to review contracts for live-in workers to ensure they are paid correctly with effect from 1 April 2024.
Another change looming on the horizon is the Employment (Allocation of Tips) Act which comes into effect on 1 July 2024 where it will be illegal to withhold tips from staff.
Changes to holiday leave
Changes to the Working Time Regulations take effect from 1st April 2024 for calculating holiday pay for irregular and part year workers. For leave years beginning on or after 1st April 2024, the accrual method of 12.07% of the hours worked in a pay period is to be used when calculating holiday pay for these workers. Employers can also use the rolled-up holiday pay method as an additional method for calculating holiday for these workers from this date. This essentially means that holiday is paid at the time the work is done rather than when the worker is on holiday.
For leave years that begin before 1st April 2024, holiday entitlement will continue to be calculated in the usual way until that leave year ends. So, for employers using a calendar holiday leave year, the changes will come into effect from 1 January 2025.
Introduction of Carer’s Leave
The Carer’s Leave Regulations 2024, effective from 6 April 2024 and applicable to England, Scotland and Wales, introduces a statutory scheme allowing employees up to one week of unpaid leave to care for dependants with long-term care needs every 12 months. Employees do not have to take the week in one block and can request individual or half days throughout the 12 months instead. A ‘week’ for these purposes is the employee’s usual working pattern in a seven-day period (i.e. if employees work a 4-day week, they will be entitled to 4 days of carers leave).
This Day 1 right requires notice from employees notifying their employer of their intended leave period – this notice does not need to be in writing. Employees requesting half a day or a day’s leave will need to provide at least 3 days’ notice, and the notice period for requests for more than one day must be twice as long as the requested leave. Employers do have the right to delay this leave (but cannot refuse to grant the leave altogether) if it would cause serious disruption to the organisation at the time the leave is due to be taken.
If the employer delays the leave, it must agree on another date within one month of the requested date and confirm in writing (within 7 days of the original request) the reason for the delay and the new date to take the leave. The new rules offer flexibility in leave arrangements and ensure protection against detriment and dismissal for taking such leave. Employers will need to adapt their policies to accommodate this new right, ensuring they manage leave requests without undue disruption to business operations.
In emergency situations, employees can still take unpaid time off for dependants without the formal notice period requirements above. Emergency dependant leave would not be classed as carer’s leave as such dependants can include a spouse, child, grandchild or parent for example who do not have long term care needs as required for carer’s leave.
Paternity Leave Flexibility
The Paternity Leave (Amendment) Regulations 2024, applicable in England, Scotland and Wales, brings more flexible arrangements for eligible employees with the aim of creating a better work-life balance. Eligible employees will now be able to take their two-week paternity leave in two separate blocks and have up to 52 weeks after birth to do so. This amendment, applying to expected weeks of childbirth on or after 6 April 2024, also reduces the notice period for requesting paternity leave and for requesting amendments to their notified leave dates to 28 days, allowing greater flexibility for families and employers alike. However, the exception remains for domestic adoption cases, which still require a seven-day notice due to the unpredictability of the process. Employers should review and update their policies in readiness for these changes and ensure managers have the requisite training to deal with the new changes.
Enhanced Redundancy Protections
Significant enhancements to redundancy protections now include pregnant employees from the time of pregnancy announcement and extend existing protections for those on maternity, adoption, or shared parental leave with effect from 6 April 2024 and applicable in England, Scotland and Wales. New parents are now protected from redundancy for 18 months from the date of the child’s birth or expected childbirth, or the date of adoption. For employees taking shared parental leave, they must have taken at least six weeks of consecutive leave to be covered by the new legislation. These changes, applying to various leave types, underscore the need for employers to closely track leave periods and ensure those on leave are fairly considered in redundancy scenarios, extending protection periods significantly in some cases.
Employees who suffer miscarriages before 24 weeks gestation are now protected for the duration of their pregnancy and an additional two weeks after the end of the pregnancy. If an employee miscarries after 24 weeks, this is classed as a stillbirth, and employees will be entitled to maternity leave and the same protections that it offers.
This does not stop employers from making employees who have this protection redundant; it merely provides greater protection, and such employees have the right to be offered a suitable alternative vacancy, if one is available before being made redundant. This gives employees on these types of leave priority access to redeployment opportunities over other redundant employees.
Flexible Working Rights Expansion
From 6 April 2024, all employees in England, Scotland and Wales, regardless of their service length, will gain the right to request flexible working from their first day of employment. Flexible working can include a variety of changes to an employee’s working pattern, ranging from a reduction in hours to a request to work condensed hours or requests to work from home or work flexitime. This amendment represents a significant shift towards accommodating diverse working preferences and lifestyles, necessitating employers to review and revise their flexible working policies.
Wider changes set out in The Employment Relations (Flexible Working) Act 2023 are also expected to come into effect on 6th April 2024 which include:
- Allowing employees to make two statutory requests in any 12-month period (rather than the current one request).
- New requirements for employers to consult with the employee before rejecting their flexible working request.
- Employers providing decisions to requests within two months rather than the previous three months.
- Employees will not be required to explain what the change will have on the employer anymore.
Action Steps for Employers
To navigate these changes effectively, employers should:
- Review and update wage structures to comply with the new NLW and NMW rates.
- Implement or amend policies to accommodate the carer’s leave and the revised paternity leave arrangements.
- Revise redundancy policies to reflect extended protections.
- Prepare for the increased flexibility in working arrangements by updating flexible working policies.
Train managers and supervisors on the changes to ensure a smooth implementation of the new changes.
Conclusion
The upcoming legislative changes underscore a continued shift towards greater employee rights and flexibility in the workplace. Employers must proactively update their policies and practices, ensuring compliance while supporting their employees’ evolving needs. By staying informed and adaptable, your organisation can navigate these changes smoothly and maintain a positive, compliant working environment.
For tailored advice and support in implementing these updates within your organisation, please contact our employment law specialists by filling out a contact form or calling 0330 111 3131.