New Employment Laws in the UK
The UK’s employment landscape is constantly evolving, with new laws and regulations introduced to protect workers and ensure fair treatment in the workplace. Understanding these changes is crucial for businesses to remain compliant, avoid penalties, and foster a positive work environment. From wage increases to new rights for employees, 2024 brings several important updates to UK employment laws that employers and HR professionals need to be aware of.
In this blog, we will explore some of the key new employment laws in the UK for 2024 and how they will impact businesses and employees alike.
Table of contents
National Minimum Wage Increase
One of the most significant changes coming in April 2024 is the increase in the National Minimum Wage and the National Living Wage. The government has announced increases aimed at ensuring workers receive fair pay to meet the rising cost of living.
The new rates will be:
National Living Wage (23 and over): £11.00 per hour
21-22 year olds: £10.18 per hour
18-20 year olds: £7.49 per hour
16-17 year-olds: £5.28 per hour
Apprentices: £5.28 per hour
Impact on Employers:
Businesses must ensure their payroll systems are updated to reflect these changes and that all employees are paid at or above the new minimum wage. Failing to comply with these rates can lead to fines and damage to the company’s reputation.
Flexible Working Rights
Starting in 2024, all employees will have the right to request flexible working from their first day of employment. This is a significant change from the previous rule, which required employees to be with a company for 26 weeks before making a request. The new law aims to support work-life balance, especially for parents and carers.
Employers must consider flexible working requests, which may include changes to working hours, remote working, or job-sharing arrangements. While employers are not obligated to accept all requests, they must provide valid reasons if they choose to refuse.
Impact on Employers:
HR departments need to be prepared for an increase in flexible working requests and should establish clear policies on how to handle these requests fairly and consistently. Employers must respond to requests within three months of receiving them.
Carer’s Leave
The Carer’s Leave Act 2023 will take effect in 2024, giving employees the right to one week of unpaid leave per year to care for a dependent with long-term care needs. This leave is in addition to other types of leave, such as annual leave and parental leave.
Impact on Employers:
Employers should update their leave policies to include this new entitlement and ensure they are prepared to handle requests for carer’s leave. Although the leave is unpaid, it provides crucial support for employees juggling work and caregiving responsibilities, potentially improving retention and employee satisfaction.
Redundancy Protections for Pregnant Employees and New Parents
The Pregnancy and Maternity Discrimination Bill extends protections for pregnant employees and those returning from parental leave. Under the new law, these employees will be protected from redundancy from the moment they notify their employer of their pregnancy until six months after returning from maternity or shared parental leave.
Impact on Employers:
Employers must ensure that they follow the updated rules around redundancy to provide enhanced protections for pregnant workers and new parents. When making redundancies, employers are required to prioritize finding suitable alternative roles for these employees before considering redundancy.
Post-Brexit Immigration and Right to Work Changes
The UK’s Post-Brexit Points-Based Immigration System continues to impact employers, especially those looking to hire workers from outside the UK. Under the system, all migrant workers must meet certain criteria related to skills, salary thresholds, and English language proficiency to work in the UK.
Additionally, employers must ensure they are conducting proper Right to Work checks, which are essential for hiring both domestic and international workers legally.
Impact on Employers:
Employers need to ensure compliance with immigration rules and right-to-work checks, especially if they rely on international talent. Non-compliance can lead to significant fines and loss of the ability to sponsor visas. Regular updates to immigration rules mean employers should keep track of changes and adjust their hiring practices accordingly.
Holiday Pay Calculation Updates
In response to recent legal rulings, changes have been made to how holiday pay is calculated for employees with irregular working hours or variable pay, such as overtime or bonuses. Employers must now include regular overtime, commission, and bonuses in holiday pay calculations to ensure employees receive the correct compensation when taking leave.
Impact on Employers:
Payroll systems will need to be updated to reflect these changes in holiday pay calculations. Employers should review how they calculate holiday pay, particularly for employees with fluctuating pay patterns, to avoid potential disputes or claims for back pay.
Conclusion
With the introduction of new employment laws in the UK, businesses must be proactive in updating their policies, processes, and payroll systems to remain compliant. From minimum wage increases to expanded employee rights, 2024 brings significant changes that will impact both employers and employees.
To help navigate these changes efficiently, consider leveraging tools like HirewithEve.ai, which can automate compliance, streamline HR functions, and keep your business on track.
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