Legal News | 20.03.24
Employment Law Update 2024
With the new financial year starting next month, we have compiled the changes that employers should be looking out for.
Changes to the National Minimum Wage and National Living Wage
From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage. The below rates will apply from 1 April 2024.
| Hourly rate | Age |
|---|---|
| £11.44 | National Living Wage (21 and above) |
| £8.60 | 18 to 20 |
| £6.40 | Under 18 |
| £6.40 | Apprentice |
Changes to Compensation Limits
Introduced on 6 April 2024.
| Maximum guarantee payments | £38 per day (maximum £190, five days in any three-month period) |
| Maximum week’s pay for calculating redundancy and unfair dismissal basic award | £700 |
| Maximum basic award for unfair dismissal and statutory redundancy payment | £21,000 (30 weeks’ pay subject to the limit on a week’s pay) |
| Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only | £8,533 |
| Maximum compensatory award for unfair dismissal (unlimited for certain automatically unfair dismissals, for example, health and safety or whistleblowing) | £115,115 |
Changes to Statutory Rates
Statutory Rates for those having children are as follows from 7 April 2024:
| Statutory Maternity Pay – first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Maternity Pay – for the remaining weeks | £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Maternity Allowance – not entitled to Statutory Maternity Pay | |
| Statutory Paternity Pay | £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Adoption Pay – first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Adoption Pay – for the remaining weeks | £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay | £183.03 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Parental Bereavement Pay | £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower |
For the purposes of calculating Statutory Redundancy Pay, a week’s pay will be capped at £700 per week from 6 April 2024. The total amount payable will be based on the number of years of completed service, multiplied by the lower of the actual weeks’ pay, of the cap, and a multiplier of ½, 1 or 1 ½ for each year of service, depending on the age of the employee in that same year.
Statutory Sick Pay will be payable at £116.75 per week from 6 April 2024. Although this is the same for all employees, the amount you must actually pay an employee for each day they are off work due to illness depends on the number of qualifying days they work each week.
Updated to Transfer of Undertakings (Protection of Employment Regulations 2006 (TUPE)
Since 1 January 2024, businesses with fewer than 50 employees, and businesses of any size undertaking a small transfer (fewer than 10 employees) can consult directly with staff affected by TUPE if there are no existing worker representatives in place.
Employment Rights (Amendment, Revocation and Transitional Provisions) Regulations 2023 (ER Regulations)
This regulation sets out a new system of holiday accrual for part-year, irregular hours workers, and permits, rolled-up holiday pay at a rate of 12.07%. This can apply to leave years starting on or after 1 April 2024.
This allows for the holiday to be calculated in hours accrued on the last day of each pay period, at a rate of 12.07% of the actual hours worked in the pay period, and an average over a 52-104 week reference period will be used to calculate the holiday accrued during a period of sick leave or statutory leave (such as maternity leave).
Paternity Leave (Amendment) Regulations 2024
Where the “Expected Week of Childbirth” is on or after 6 April 2024, employees taking paternity leave will be able to choose to split their leave and pay into 2 non-consecutive periods of leave of one week each. Paternity leave can be taken any time during the 52-week period after birth.
Carer’s Leave Regulations 2024
From 6 April 2024, employees will be entitled to unpaid leave from their first day of work for the employer, 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 the employee for care. The period of leave will be one week (pro-rata for those who work part-time) of leave in every 12-month period.
Flexible Working
From 6 April 2024 onwards:
- Employees can make two flexible work requests in any 12-month period, previously one.
- Employees can request flexible working from day one of employment, previously an application could only be made after 26 weeks of services with the same employer.
- Employers will be required to consult each employee before rejecting their flexible working request.
- The onerous obligation on the employee to explain what effects the proposed change has on their employer and what solutions are available to mitigate these effects, is no longer required.
- Employers will need to reach a decision in two months, previously this was three months.
Redundancy protection during pregnancy, on maternity leave, adoption leave and shared parental leave
From 6 April 2024 onwards, the right will apply during pregnancy and for a period of 18 months after taking the relevant leave, applying the required statutory definitions.
Worker Protection Act 2023
From October 2024, employers will be under an obligation to take reasonable steps to prevent sexual harassment in the workplace. Such steps could include introducing new processes or reporting lines for employees to share confidential information and deal with any instances. Where appropriate, internal investigations into the workplace culture should be conducted to identify potential future issues that may arise.
For further information, or for advice in relation to an employment or HR matter please contact the relevant team:
Non contentious employment or HR matters: 01380 733300 | commercial@wansbroughs.com
Contentious employment or HR matters: 01380 733300 | disputeresolution@wansbroughs.com
