As we step into 2024, the UK employment law arena is brimming with significant changes, spanning from post-Brexit reforms to anticipated legislation shifts. This comprehensive guide provides insights into the key alterations, upcoming cases, and potential implications under an evolving legal landscape.

Post-Brexit Employment Law Changes from January 1, 2024

The Retained EU Law (Revocation and Reform) Act, effective January 1, 2024, signals a pivotal shift in UK employment law post-Brexit. While preserving key EU caselaw decisions on holiday pay and non-discrimination, the following changes come into play:

New Laws on Holiday Entitlement and Pay:

  • Employers must maintain full normal pay for at least four weeks of an individual’s holiday entitlement.
  • Workers can carry forward unused holiday entitlement in specific circumstances.
  • Overtime, commission, and allowances must be factored into holiday pay.

Amendments to the Equality Act 2010:

  • Designed to preserve EU caselaw effects, particularly in areas like indirect discrimination, recruitment, and workplace breastfeeding.
  • Raises awareness of widened scope for claims in certain areas.

TUPE Consultation and Working Time Record Keeping:

Modest steps taken to distance from EU caselaw on TUPE consultation obligations and working time record-keeping.

While these changes fall short of the anticipated overhaul, uncertainties may arise in interpreting UK laws without the guiding principles of EU requirements and caselaw.

Developments in Early 2024

Draft Code of Practice on ‘Fire and Rehire’:

  • A response to increased scrutiny on this practice.
  • Final version expected early in 2024, impacting imminent changes to contractual terms.

April 2024 Employment Law Changes

National Living Wage Increase:

  • Effective April 1, 2024, the National Living Wage jumps to £11.44 per hour.
  • Proposed increases in statutory pay for family leave.
  • Significant impact on the minimum wage and living wage gap.

New Holiday System for Irregular Hours:

  • Effective April 1, 2024, introduces a new holiday system for workers with irregular hours or seasonal work.
  • Workers accrue holiday entitlement at 12.07% of hours worked.

Flexible Working Requests from Day 1:

  • From April 6, 2024, workers can request flexible working from the first day of employment.
  • Limited reforms raising the prominence of the right to request flexible working.

Introduction of Carer’s Leave:

  • From April 6, 2024, employees gain a statutory right to a week’s unpaid leave to care for dependents.
  • Requires policy updates, record-keeping, and awareness among people managers.

Redeployment Priority for Maternity Returners:

  • Effective April 6, 2024, pregnant or returning employees gain priority status for redeployment in redundancy situations.
  • Materially increases employee protection.

Minor Changes to Paternity Leave:

Expected in April 2024, allowing paternity leave at any time in the first year, split into two blocks of one week.

Employment Law Changes from May 2024 Onwards

New Law on Fair Distribution of Tips:

  • Expected to be effective from July 1, 2024.
  • Significantly impacting the hospitality sector.

Statutory Right to Request Predictable Working Pattern:

  • Anticipated in September 2024, providing workers the right to request a more predictable contract.
  • Employers retain the right to reject requests.

Worker Protection Act from October 26, 2024:

  • Mandates proactive steps to prevent workplace sexual harassment.
  • EHRC to release new guidance or a Code of Practice.

Data Protection and Digital Information Bill:

Expected passage in 2024, aiming for data protection adequacy with relaxed areas benefiting employers.

New Right to Neonatal Leave:

  • Expected in April 2025, potentially sooner.
  • Adds to the spectrum of family-related leave.

Impact of General Election in 2024

Labour Victory Expectations:

  • Anticipated general election in Autumn 2024.
  • Labour leading in polls.
  • Potential headline proposals include changes to dismissal rights, employment status framework, zero-hours contracts, trade union rights, harassment laws, and introduction of pay gap reporting.

Expectations in Employment Law for Northern Ireland

Divergence from UK Laws:

Differences between Northern Ireland and the rest of the UK expected to widen.

Changes might not uniformly apply in Northern Ireland.

In Summary: A Dynamic Year Ahead

Employment Challenges:

  • 2024 promises substantial changes in employment legislation.
  • Concurrent challenges include enforcing return-to-office policies, navigating cultural conflicts, and staying abreast of AI developments.

Labour Victory Implications:

  • Potential for the most extensive employment law shake-up in years if Labour secures victory.
  • Employers advised to prepare for changes by monitoring manifestos and seeking legal guidance.

As the year unfolds, vigilance and adaptability will be paramount for businesses navigating the ever-evolving terrain of UK employment law. Our legal team stands ready to provide support, ensuring a seamless transition through the changes and challenges that lie ahead.