Changes to Employment Law that will have an impact in 2024

Changes and clarification on the carry over of statutory leave and the calculation of holiday pay.

The full rate increased to £1035 per year (from £624) and the discounted rate to £776 per year (from £470).

Fines increase for employing illegal workers from £15,000 to £45,000 per illegal worker for a first breach and from £20,000 to £60,000 for repeated breaches.

All leave carried over because of Covid under extended time period allowance must be taken by this date.

The National Living Wage age band will be expanded to include workers aged 21 and over (it was age 23 and over). 

For holiday years beginning on or after this date, holiday entitlement for part year and irregular hours workers can be calculated by taking 12.07% of the hours worked in the pay period.

Rolled up holiday will also be permissible from this date for part year and irregular hours workers only.

Statutory shared parental, maternity, adoption, paternity and parental bereavement pay is £184.03pw. Statutory sick pay £116.75pw

Sponsors will need to pay the overseas workers they wish to sponsor on a Skilled Worker visa a minimum of £38,700 per year. This is a huge increase from the current minimum salary of £26,000 per year.

An end to the 20% reduction to the Skilled Worker minimum salary threshold for jobs on the shortage occupations list.

In line with the approach already taken for students, overseas care workers will no longer be able to bring dependants with them under the Health and Care Worker visa route (from 11 March).

Confirmed: The right to request becomes a ‘day 1’ right (you previously needed at least 26 weeks service).

Subject to parliamentary approval:

• You must consult with the employee on alternatives before refusing their request.
• Two requests in any twelve-month period will be permitted (it was previously 1).
• The time to deal with a request, including appeal, will become two months (it was 3).
• Employees will no longer be required to set out the effect their requested arrangement will have on the business, nor suggest ways their employer can manage it.

Subject to parliamentary approval, there will be a new statutory right to unpaid carer’s leave for employees in England, Wales and Scotland – 1 week unpaid. 

Subject to parliamentary approval, new rules allow: SPL can be taken in the first 52 weeks after birth or adoption (it was first 8 weeks)Two separate weeks can be taken (it was one or two consecutive weeks only). Applies where EWC or placement for adoption is on or after 6 April 2024.

Subject to parliamentary approval, redundancy protection will extend to new groups and apply during pregnancy and /or the period of 18 months after the birth or placement of a child for those taking maternity, adoption or shared parental leave (effectively extended beyond the period of maternity leave). 

There are a range of new measures, including a duty to ensure that all qualifying tips are allocated fairly between workers and for relevant employers to have a written policy on how they deal with tips. A draft statutory code of practice is linked below and a final code is awaited.

New rules permit employers with 50 or fewer employees to consult directly with staff affected by a transfer (unless there is a recognised trade union in place), rather than having to elect representatives.  This continues to apply also for transfers involving 10 or less employees.  It is a very helpful change for smaller companies.