It’s that time of year when we consider forthcoming employment legislation changes from April 2024. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes.

Payroll costs – National Minimum Wage rates

Inflation continues to be a key issue for many employers who are facing pressure to increase wages.  Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2024, therefore if your pay is based on minimum wage rates per hour, you will need to implement these changes:

 

Age group	Up to 31/3/2024	From 1/4/2024
21 and over	£10.18 (£10.42 for 23+)	£11.44
18 – 20	£7.49	£8.60
Apprentices under 19 (or over 19 but in year 1 of apprenticeship) and under 18s	£5.28	£6.40

Statutory pay rates – From April 2024

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £184.03 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £116.75 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap will increase to £700 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Rolled-up holiday pay

With effect from the holiday year starting in April 2024 and thereafter, workers who work irregular or part year hours can have their holiday pay rolled in to their pay, rather than accruing actual holiday which has to be taken as leave.  The method of calculating the holiday pay will be 12.07%. Employers should note this only applies to those employees who work irregular or part-year hours. Other employees with set hours (either part or full-time) will accrue paid holiday which must be taken as paid time off.

Flexible Working Requests

With effect from 6th April 2024, employees will be able to make a flexible working request from day one of their employment, removing the current 26 weeks’ service requirement.  Employees will be able to make two requests a year (currently only one request is possible) and they will no longer be required to set out the likely effects on the business of the change.  Employers will be compelled to consult with the employee before rejecting a request and the time allowed for the whole process, including appeal, will be reduced from three to two months.

Statutory Carer’s Leave

Statutory Carer’s Leave will give carers a minimum of one week’s unpaid leave per year to care for a dependant with a long-term care needs, from day one of their employment.

This will be a day one right for employees and is flexible, however it’s likely advance notice will need to be provided, and it may be possible to postpone requests in a similar way to Unpaid Parental Leave.

This right will be in place from 6th April 2024.

Paternity Leave

An amendment to the entitlement for fathers and partners to take Paternity Leave has recently been proposed.  If approved fathers and partners will be able to take their Paternity Leave in two split weeks, should they wish, and the timeframe for taking the leave will be extended from 56 days after the birth, to 12 months after the birth, offering more flexibility to new parents.

This amendment will be effective for babies born or children adopted on or after 6th April 2024.

Redundancy Protection for Pregnancy and Family Leave

This protection extends the right to be redeployed during pregnancy (including if a miscarriage is suffered), maternity and family leave for 18 months after the start of that leave. These are important considerations during an employee’s family/maternity leave and in restructuring or redundancy exercises.  Employers who breach this protection will risk claims for unfair dismissal and sex discrimination (with uncapped compensation).

This new protection will be in place from April 2024.

Upcoming changes to be confirmed

2024 is potentially going to be another busy year for changes in employment law.  This is a summary of what may be in the pipeline when it comes to employment legislation changes from April 2024.  In some cases there are no firm dates for implementation however, it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Employment Allocation of Tips Act

This ban will make it unlawful for employers to withhold tips from staff.  In addition, employers must also have a written policy related to tip allocation in place.  This will apply to tips, gratuities and service charges given during the previous month.

This is expected to be in place from July 2024.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

This is expected to be in place from April 2025.

Right to request more predictable working patterns

Employees and workers (including agency and zero hours workers) will have the right to formally request a more stable working pattern.  In addition, this right will also be available to those on fixed-term contracts of less than a year.  This right will apply after 26 weeks of continuous employment.

Employers will only be able to refuse requests  if there is a legal reason for refusing the request.

This is expected to be in place ‘in due course’.

Proactive duty to prevent sexual harassment

This will require employers to have proactive measures in place to prevent sexual harassment in the workplace.  As a result employers will be legally responsible if no measures are in place.  And that responsibility applies, regardless of whether or not an incident has occurred. Failure to comply with this requirement could result in increased compensation of up to 25%.

This is expected to be in place from October 2024.

Pensions (Extension of Automatic Enrolment) Act 2023

This Act brings in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

There is no indication at this point when this change will come in to effect.

If you’re concerned about what these employment legislation changes from April 2024 mean for your business and need help reviewing your policies, please get in touch with Helpful HR.

Over the last 6 months mental health and wellbeing support has become a hot topic, as data emerges about anxiety and stress levels in the context of returning to work and to the workplace.

What do we know?

Some key statistics regarding mental health and wellbeing are coming to light:

• 72% or employers are planning to bring teams back to the office by mid-October ¹
• 33% of UK workers don’t have faith in their colleagues when it comes to hygiene protocols ¹
• 44% of workers are worried about sharing equipment ¹
• By end May 2020 calls to the UK’s national domestic abuse helpline had increased by 66% ²
• The number of adults experiencing depression has doubled during the pandemic ³
• 37% of people in the UK are suffering from high anxiety ³
• 22% of those with no pre-existing mental health issues now report having ‘poor’ or ‘very poor’ mental health ⁴
• 65% of those with pre-existing mental health issues report that those issues are now worse ⁴

In the context of these statistics, fears of a mental health crisis seem well founded.

What does this mean for employers?

There are potentially many ways in which the mental health crisis will affect employees, as people will have had very different experiences of the pandemic. Here are some of the issues your employees may be having:

• Job security – as more and more businesses announce job losses, anxiety about impending unemployment will be high
• Isolation – for some remote working has left them feeling isolated and de-motivated
• Mental and physical exhaustion – for many who had to balance work and childcare and/or home-schooling it has been extremely stressful and tiring, creating what could manifest itself as ‘burn-out’
• Personal relationship stress – spending such a long time in close proximity with partners may have put a strain on relationships
• PTSD and bereavement – for anyone who contracted the virus, there are reports of potential longer term mental and physical issues; and those who have lost loved ones may still be dealing with grief and feelings of guilt

Employees may find it difficult to focus, concentrate and  stay motivated and engaged. For those who are working from home for the foreseeable future, the feeling of being disconnected from their colleagues may continue. Without interventions, these issues could result in both a downturn in productivity and difficult and sensitive employee relations issues to manage.

Pro-active employers will definitely be on the front-foot if they can support employees through the next phase of the coronavirus pandemic and beyond.

Why should employers focus on mental health and wellbeing?

As well as the ethical and moral arguments for supporting employees who are struggling, there is evidence to suggest that wellbeing could increase productivity by 12% and that unhappy staff could be 10% less effective. ⁵

If employers do provide support for their employees, they would undoubtedly become more resilient. If issues arise at any point in the future those employees will be able to manage more successfully, leading to less employee absence.

Employers will also find that how they treat people during this time will define them and their brand. Being supportive will drive both loyalty and make them a more attractive employer for the best talent in the longer term.

From a practical perspective, if employers ‘catch people’ before they fall, they will avoid difficult employee absence issues which can be time-consuming and expensive to manage.

There is also the issue of the duty of care employers have for employees. Employers have a duty to minimise risk of health and safety issues, and this includes the risk of mental health issues. Risk assessments should be done, steps taken to minimise risk and these should both be communicated to employees to ensure employers don’t breach of health and safety regulations.

In addition, as mental health issues can be regarded as a disability, employers have a duty to make reasonable adjustments to accommodate and support those with mental health issues.

What can employers do?

There is a plethora of solutions to address the mental health and wellbeing. Here are some ideas:

Communication: Make people feel connected and find out how people are feeling.

• Conduct regular group and individual check-ins
• Hold virtual team meetings – peer or manager lead
• Create virtual ‘pub’ meet ups over video conference
• Appoint ‘check-in’ champions in each team who can re-create the ‘water cooler’ catch up moments

Line manager proactivity: Create a supportive environment.

• Be a sympathetic ear – not just focussing on work / outputs
• Train managers as Mental Health First Aiders
• Ensure managers are keeping up to date with how individuals in their team are coping
• If returning to workplaces is causing anxiety, ensure managers are discussing options and solutions to help address those anxieties
• Communicate with employees to reassure them about what the company is doing to minimise risks

Update or create a Mental Health and Wellbeing Policy

Re-visit your existing policy and update it to account for issues created by the coronavirus pandemic and different norms relating to work and workplaces. This will create the framework within which the business will function in this area, and create consistency.

Research, propose and implement a variety of support ideas to tackle the variety of issues people may be experiencing, to cover physical health, diet, financial health as well as mental health and wellbeing. All of these factors play a part in keeping employees healthy in body and mind.

If you would like to discuss support you could put in place for your employees, get in touch with Helpful HR here.

References:

1 – Solopress Survey via HR Review: https://www.hrreview.co.uk/hr-news/workers-fear-returning-to-work-due-to-colleagues-lack-of-hygiene/126356?utm_source=Gatormail&utm_medium=email&utm_campaign=HR+Daily+Friday+-+17-07-2020&utm_term=Government+bury+its+%27head+in+the+sand%27+in+response+to+House+of+Lords+IR35+report&utm_content=108317&gator_td=o3G5kc7rW2VpP8pLbvvPKX8i65b%2blZYHTpgu38q3MGha0tK5Q3sXgBaP1prmh6Uahsujuoe2CuGf6B3yFqphtXubssiphNgkvdH1KnKkAGx3lvuNf7CA%2bu8sK%2bvpNvjxNCLDEd8aOmaV9F4yS%2bf%2f2pCjx64K0MeyKpb1VszBRbl53pQV6Ng3a%2fnLQ8Dir5b9XfQusRxJpXxh1CL8mZhbHg%3d%3d

2 – Independent: https://www.independent.co.uk/news/uk/home-news/domestic-abuse-lockdown-reports-school-reopen-coronavirus-a9703926.html

3 – Office of National Statistics via People Management: https://www.peoplemanagement.co.uk/experts/legal/supporting-workers-mental-health-during-covid?utm_source=mc&utm_medium=email&utm_content=pm_daily_03092020.Employment+law%3a+Supporting+workers’+mental+health+during+Covid&utm_campaign=7295441&utm_term=1115500

https://www.peoplemanagement.co.uk/voices/comment/employers-must-act-restore-workforce-mental-health?utm_source=mc&utm_medium=email&utm_content=pm_daily_24072020.Opinion%3a+Employers+must+act+to+restore+their+workforce’s+mental+wellbeing&utm_campaign=7295441&utm_term=1115500

4 – Mind via People Management: https://www.peoplemanagement.co.uk/voices/comment/employers-must-act-restore-workforce-mental-health?utm_source=mc&utm_medium=email&utm_content=pm_daily_24072020.Opinion%3a+Employers+must+act+to+restore+their+workforce’s+mental+wellbeing&utm_campaign=7295441&utm_term=1115500

5 – University of Warwick study in 2015: https://warwick.ac.uk/newsandevents/pressreleases/new_study_shows/