Employment regulation changes to be aware of

Employment regulation changes to be aware of

For the first time in a while, there are a lot of employment law changes this month. These changes, which came into effect from April 2024, could have an impact on your business, so it’s important that you’re aware of them. To assist, we explore them below.

1. Holiday for variable hours contracts

For holiday years starting in April 2024, businesses can revert to the 12.07% method for calculating holiday entitlement and pay for variable hours workers (zero hours, casual hours, seasonal workers, term time only, etc). The basic calculation for entitlement is:

• of hours worked in the pay period x 12.07% = holiday entitlement

Holiday pay is calculated as follows:

• Total no. of hours worked x £hourly rate = £A
• Divide £A by 100, rounding to the nearest pence = £B.bb
• Multiply £B.bb by 12.07 = £C.cccc
• Round £C.cccc up or down to nearest pence = £X.xx

The answer after the above calculation is the holiday pay for that pay period. This can now be paid as rolled up holiday pay in each pay period, as long as it is shown as a separate line on the payslip.

2. Statutory payments

We have seen bigger than normal increases in statutory payments, including:

• Statutory Sick Pay (SSP) - £116.75pw from 6^th April
• Statutory Maternity Pay (SMP) - £184.03pw from 7^th April (and all other family friendly payments)
• Redundancy weekly cap - £700pw (£21,000 max) from 6^th April
• Statutory guaranteed pay - £38 per day from 6^th April
• National Minimum Wage/National Living Wage (NMW/NLW) – NLW is now from the age of 21, not 23 years of age.
  • 21+ £11.44ph /18-20              £8.60ph
  • <18 £6.40ph / Apprentice      £6.40ph

3. Right to request flexible working

Flexible working request is now a day one right, and two requests can be made in any 12-month period. The employee also no longer has to provide a business case for how the proposed changes affect the business/can be overcome. Employees have to be consulted with if the request is being refused, but businesses now only have two months in which to respond to any request, including time for an appeal. There remain only 8 reasons why a flexible work request can be refused.

4. Paternity Leave

Employees now only have to give 28 days’ notice of paternity leave, although they still need to notify the business of their intention to take paternity leave by the 15^th week before the expected week of childbirth (EWC)/placement.

Employees can now take one week, two consecutive weeks or two non-consecutive weeks within 52 weeks of the baby’s birth or placement for adoption, as opposed to the one week or two consecutive weeks within 8 weeks of the birth/placement as it was.

5. Redundancy and maternity

There are now additional protections against redundancy for pregnant ladies, ladies on maternity and ladies returning from maternity leave. Employees have protection from the day they notify their employer of their pregnancy, and for 18 months after they have returned to work following maternity leave. They have to be offered a suitable alternative role above anyone else. This does not prevent redundancies per se but does mean additional precautions have to be taken to avoid a pregnancy/maternity discrimination claim.

6. Carer’s Leave

New legislation that entitles employees to one week of unpaid leave every 12 months to give or arrange care for a ‘dependant’ who has a physical or mental illness or injury that means they’re expected to need care for more than 3 months, a disability (as defined in the Equality Act 2010), or care needs because of their old age. The dependant does not have to be a family member, it can be anyone who relies on them for care. This is a day one right, but a minimum of half a day has to be taken when booked.

Other legislation changes planned

As well as the changes noted above, there are also further significant legislative amends set to come into force in the near future. These are as follows:

• From April 2025, parents will be provided with a right to 12 weeks’ neonatal leave and pay.
• As of 1 July 2024, new requirement for all tips within hospitality businesses to be passed to staff. The change is explored further here.
• New Advisory, Conciliation and Arbitration Service (ACAS) Code of Practice for employers conducting ‘fire and rehire’. The code is designed to be a last resort and to follow a comprehensive and purpose driven consultation process with the employee. It is expected that the Code will be in place from summer 2024.
• Right to request a more stable contract or predictable working pattern (for those on variable/zero hour/casual contracts) after 26 weeks.
• Transfer of Undertakings Protection of Employment rights (TUPE) – As at 1 July 2024, businesses with up to 50 employees will be able to consult individually with employees as opposed to a collective consultation.
• Due to be enacted on 25 October 2024, a proactive duty will be imposed on all employers for the prevention of sexual harassment.

We are here to help

If you’re unsure where you stand following these changes or have any questions on HR matters generally, please get in touch with a member of our specialist HR Consultancy team or your usual Azets advisor.

Information correct at time of publishing, but may be subject to change in future. This article is for general information only and is not intended to be advice to any specific person. You are recommended to seek professional advice before taking or refraining from taking action on the basis of the contents of this article.