2024 UK employment law changes: What employers and workers need to know

2024 is set to be a year of significant changes to employment legislation in the UK. These include amendments to existing laws and the creation of completely new legislation. In this blog post, we’ll guide you through the main changes you’ll see in 2024, one law at a time.

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

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 will introduce several changes to UK employment legislation in 2024. The three main changes are:

  Removal of detailed working hour records

The UK government has confirmed that businesses no longer need to keep a detailed record of workers’ daily working hours. However, businesses will still be required to maintain overall records to demonstrate compliance with the Working Time Regulations. This move is designed to help businesses reduce their administrative burden.

  The return of rolled-up holiday pay

When using rolled-up holiday pay, the worker receives an additional amount on top of their normal hourly rate of pay instead of taking time off as holiday. This practice was made illegal in 2006.

In 2024, employers will have the option to use rolled-up holiday pay for workers with irregular hours or who only work for part of the year. This amendment is again aimed at reducing the administrative burden of businesses.

  TUPE transfer consultation flexibility

TUPE stands for Transfer of Undertakings (Protection of Employment) Regulations 2006. This law protects employee rights when an entire organisation, or part of it, transfers from one employer to another, or a service transfers to a new provider.

The 2024 amendment relates to small businesses (those with fewer than 50 employees) and businesses of any size undertaking a small transfer (fewer than 10 employees). Employers or transfer that meet these criteria will now be able to consult directly with employees if there are no existing worker representatives in place.

National Minimum Wage (Amendment) Regulations 2024

The National Minimum Wage (Amendment) Regulations 2024 will lower the age threshold for the national living wage from 23 to 21 years old. Previously, minimum pay for those aged 21 and 22 years old was based on the National Minimum Wage. This change is expected to come into effect on 1st April 2024.

Workers (Predictable Terms and Conditions) Act 2023

The Workers (Predictable Terms and Conditions) Act 2023 will provide workers with the right to request a more predictable working pattern. Eligibility for this right relies on:

• having at least 26 weeks’ continuous service
• a proven lack of predictability in the worker’s work pattern
• the worker’s purpose in applying is to gain a more predictable work pattern
• the worker has made no more than two applications in the last year

Employers must handle requests for predictable working in the same way and with the same considerations as a request for flexible working. This is expected to come into force from September 2024.

Worker Protection (Amendment of Equality Act 2010) Act 2023

The Worker Protection (Amendment of Equality Act 2010) Act 2023 requires employers to take reasonable steps to prevent sexual harassment in the workplace. For instance, employers should provide training to employees and implement policies and procedures to prevent and address sexual harassment. The act is expected to come into force on 26th October 2024.

Employment (Allocation of Tips) Act 2023

The Employment (Allocation of Tips) Act 2023 requires employers to deal with the distribution of tips and service charges fairly. The act covers employer-received and worker-received tips, as well as non-public and public places of business. It also requires employers to issue a code of practice to promote fairness and transparency, and provide workers with a clear breakdown of how tips and service charges are allocated.

Under the act, employers must not make any deductions, except for tax or National Insurance contributions.

Equality Act 2010

The Equality Act 2010 will go through several amendments in 2024. Here are the four main changes:

  The single source comparator test is back

The ‘single source’ comparator test, the legal test for equal pay, will be reinstated under the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023. What this means for workers is that they can compare their pay to equivalent workers from other businesses and sectors to make an equal pay comparison. They are no longer limited to comparing their pay to workers who work for the same employer or an associated employer.

  Extension of the definition of disability

The definition of the term ‘disability’ will be extended to include a person’s ability to take part in working life on an equal basis with other workers. Currently, it simply refers to a person’s ability to carry out everyday activities, such as talking on the telephone or buying an item in a shop. This change is expected to come into effect on 1st April 2024.

  Additional protection against discrimination

Changes to the Equality Act will offer new and extended protection against discrimination, including:

• indirect discrimination by association
• extension of direct discrimination protection
• breastfeeding discrimination

All of these amendments will come into effect in April 2024.

Wrapping it up

When it comes to employment legislation, 2024 will be all about change. From pay, to the right to ask for predictable hours, to clarity around discrimination, amended and new legislation will have a huge impact on employers and workers alike.