2024 UK Employment Law Updates: Essential Guide for HR Professionals

As the new year approaches, HR professionals and employers must prepare for a wave of legal updates set to reshape the employment landscape in 2024. Following a busy year of enhancements to workers’ rights, with five new employment Acts already announced, 2024 promises to bring significant changes that will impact various aspects of employment law.

Key Employment Law Changes for 2024

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023

Set to take effect on January 1, 2024, these regulations will amend laws concerning holiday pay, TUPE, and working time:

1. Holiday Pay Calculation: Introduces an accrual rate of 12.07% of hours worked for part-year and irregular hours workers.
2. Holiday Pay “Roll-Up”: Allows employers to “roll up” holiday pay for part-year and irregular hours workers from April 1, 2024.
3. TUPE Consultation: Enables small businesses and those undertaking small transfers to consult directly with employees if no worker representatives exist (effective July 1, 2024).
4. Working Time Records: Eliminates the requirement for businesses to maintain overly detailed records of workers’ daily hours.

Note: These are draft regulations and may be subject to change.

Equality Act 2010 (Amendment) Regulations 2023

Start from January 1, 2024, these amendments include:

1. Refining the definition of disability to consider a person’s ability to engage in working life.
2. Extending the right to claim indirect discrimination by association.
3. Introducing a ‘single source’ test for equal pay comparators.
4. Extending direct discrimination protection to include statements about not wanting to recruit individuals with certain characteristics.
5. Explicitly including breastfeeding-related discrimination under the protected characteristic of sex.

Employment Relations (Flexible Working) Act

This Act, which received Royal Assent in summer 2023, introduces the following changes:

1. Employees can make two flexible working requests within any 12-month period.
2. Removes the obligation for employees to explain the effects of their proposed change on the employer.
3. Requires employers to consult with employees before rejecting a flexible working request.
4. Shortens the decision-making timeframe for employers from three months to two.

Carer’s Leave Act

Expected to come into force by April 2024, this Act:

1. Guarantees eligible employees one week’s leave per year to care for a dependant.
2. Applies from day one of employment.
3. Aims to improve mental health and well-being for carers.

Neonatal Care (Leave & Pay) Act

While planned for 2025, this Act may be implemented earlier:

1. Allows parents additional time off (up to 12 weeks) for babies admitted to neonatal care.
2. Provides paid leave from day one of employment.

Employment (Allocation of Tips) Act 2023

Expected to come into force in May 2024, this Act:

1. Makes it illegal for businesses to withhold tips from employees.
2. Requires employers to ensure fair tip allocation and prompt payment.
3. Mandates clear written policies and a three-year record of tip distribution.

Implications for HR Professionals

With many of these changes taking effect from January 1, 2024, HR teams face a tight timeline to adapt. To prepare, HR professionals should:

1. Familiarize themselves with the new legislation.
2. Review and update existing policies to align with the new requirements.
3. Seek advice from employment law experts if additional guidance is needed.

As employment law continues to evolve, staying informed and proactive will be crucial for HR professionals to navigate these changes successfully and ensure compliance within their organisations.