Employment Law changes- January 2024
Employment Law changes- January 2024
Many changes to Employment Law in areas such as the Transfer of Undertakings and Protection of Employees, the Equality Act 2010 and the National Minimum wage have been announced which will affect both employers and employees throughout 2024.
Here is a summary of the key changes:
Holiday pay calculations
The proposed changes allow for rolled up holiday pay (a sum of money paid to an employee as well as their hourly rate, so the additional sum can represent their holiday pay) to be paid at 12.07% of regular pay for those working irregular hours.
Retained EU case law
Various pieces of retained EU case law have been reinstated. This helps to clarify the position of EU Law in the UK following Brexit.
These provisions include allowing employees to carry over four weeks of annual leave to the following year if they were unable to take leave due to sickness or business demands.
Definition of remuneration
Normal remuneration which is used in holiday pay calculations will now have to include commission payments and regular overtime payments.
Changes to flexible working requests
A flexible working request allows for an eligible employee to ask to change the terms and conditions of their job, for example working from home or job sharing. Changes have been made which allow for employees to exercise this right from day one of their employment. This change is due to take effect for requests made on or after 6 April 2024.
TUPE
Small businesses (with fewer than 50 employees) which are involved in a TUPE transfer of any size and a business undertaking a small transfer (of fewer than 10 employees), now have the flexibility to consult with employees directly if there are no existing representatives.
Indirect discrimination by association
The amendment broadens the scope, meaning that an individual can claim indirect discrimination by association, if the employee does not possess the protected characteristic but they suffer from similar disadvantages from an employer’s PCP (policies, practices or criteria).
Definition of disability
The definition of disability will include a consideration of an individual’s ability to participate fully in working life when considering whether the employee can undertake day-to-day activities.
Breastfeeding discrimination
Clarification was given on the point that discrimination in relation to breastfeeding is protected under the characteristic of sex.
Extension of direct discrimination protection
Protection against direct discrimination will include statements which show a reluctance to recruit an individual with a protected characteristic, even if there is no identifiable victim.
Equal pay comparator
A ‘single source’ test for establishing an equal pay comparator has been introduced. This allows for an equal pay comparator to operate in a different business as long as the entity which has set the terms is the same.
Changes from the autumn budget
The Chancellor announced an increase in National minimum wage in his autumn budget (see the table below for details). The proposals are the largest ever cash increase to minimum wage.
Importantly, the top rate for minimum wage will apply to workers 21 and over instead of those over the age of 23.
The new rates will take affect on 1 April 2024.
| Category | Current rate | New rate | increase |
| 21 and over | £10.42 | £11.44 | £1.02- 9.8% |
| 18-20 | £7.49 | £8.60 | £1.11- 14.8% |
| 16 & 17 | £5.28 | £6.40 | £1.12- 21.2% |
| Apprentice rate | £5.28 | £6.40 | £1.12- 21.2% |
Employer National Insurance Contributions
- The government reduced the main rate of Class 1 employee NICs from 12% to 10% from 6 January 2024.
- There will also be a reduction in the main rate of Class 4 self-employed NICs from 9% to 8% from 6 April 2024.
- The government will also be removing the requirement for class 2 self-employed NIC to be paid from 6 April 2024.
(This article is not intended to be comprehensive or to provide specific legal advice. It should not be relied upon in the absence of specific advice given in relation to particular circumstances.)
Written by Larissa Solan
For further information, please contact: Lesley Smith or Carina Pennant-Williams
