Employment Law Updates in the UK Impact Security and Cleaning

This article is for informational purposes only and presents a high-level overview. Legislation is constantly changing, so no action should be taken based on this article without legal counsel.

Lawmakers in the United Kingdom are making sweeping changes to workplace rights through the Employment Rights Bill, described as “the biggest upgrade to rights at work for a generation, boosting pay and productivity with employment laws fit for a modern economy,” said Deputy Prime Minister Angela Rayner in an official statement.

These efforts are being made to end unfair work practices, increase pay and stimulate economic growth via changes that will impact workers and business owners alike. Several employment law updates have already taken effect, while other changes will happen in the next two years. Some of the changes include: 

  • Providing protection against unfair dismissal, while allowing probation periods
  • Establishing parental and bereavement leave from day one of employment 
  • Ending zero-hour contracts where employers avoid providing guaranteed hours
  • Eliminating practises where employers fire and rehire workers for lower pay
  • Requiring employers to approve flexible working arrangements unless unreasonable 
  • Delivering stronger dismissal protections for pregnant women and new mothers  
  • Establishing a new Fair Work Agency with new powers to enforce holiday pay  
  • Extending statutory sick pay to workers on the first day they become ill

UK employment law updates

Statutory Maternity, Paternity, Adoption, Shared Parental, and Parental Pay

On 6 April 2024, statutory maternity, paternity, adoption, shared parental and parental bereavement pay increased from £172.48 to £184.03 per week. Currently, changes to statutory paternity leave allow employees to take their two weeks of leave at any time during the first year after their child’s birth and to split this entitlement into two separate one-week blocks. 

Sick Pay

Also on 6 April 2024, statutory sick pay increased from £109.40 to £116.75 per week. The Employment Rights Bill proposes that sick pay be available from the first day of illness, removing the current three-day waiting period. It also plans to eliminate the lower earnings threshold for sick pay. 

This increase may affect employers with enhanced sick pay schemes, which provides funding for care workers who would otherwise receive only statutory sick pay up to the level of full pay when they are absent from work for reasons related to COVID-19.

Pay Costs – National Minimum/Living Wage

Beginning 1 April 2024 the following rates went into effect:

  • 23 and over: Current – £10.42, new – N/A 
  • 21 to 22: Current –  £10.18, new 21 and over – £11.44
  • 18 to 20: Current – £7.49, new – £8.60
  • Under 18: Current – £5.28, new – £6.40
  • Apprentice: Current – £5.28, new – £6.40

These significant pay increases reflect steep inflation levels and ongoing increases in cost of living increases. Lawmakers anticipate more increases are set to take action on 1 April 2025.

Flexible Working

The Employment Relations (Flexible Working) Act was passed on 20 July 2023, and it took effect on 6 April 2024. Key provisions include:

  • Employees no longer need to explain requested changes and workers can make two flexible working requests within 12 months
  • Employers must consult with employees before refusing a request, provide a clear reason for a denial based on existing grounds and give clearer reasons than in the past
  • Decisions must be made within two months, which is down from three months unless a longer flexible working period is agreed upon
  • The right to request flexible working from the first work day, eliminating the previous requirement for 26 weeks of continuous employment

Carer’s Leave Bill

The Carer’s Leave Act took effect on 6 April 2024. It allows employees to take one week of unpaid leave per year to care for a dependent with long-term care needs. Dependents include partners, children, parents and others who rely on the employee for care. Leave can be taken as full or partial days and offers flexibility based on individual circumstances. 

Employees are protected from dismissal or detriment for taking this leave, and dismissal due to Carer’s Leave is considered unfair.

The Neonatal Care (Leave and Pay) Act is expected to come into force around April 2025, and it provides up to 12 weeks of paid leave for parents of babies needing neonatal care. Eligible parents can receive pay at the statutory rate or 90% of their average weekly earnings for babies in the hospital for seven days or more and up to 28 days old.

Redundancy Protection for Pregnancy and Family Leave

The Protection from Redundancy (Pregnancy and Family Leave) Act was passed on 24 May 2023 and was enacted on 6 April 2024. It enhances redundancy protection for pregnant employees and those on maternity leave. 

Previously, employers had to prioritise offering suitable alternative employment to employees on maternity, adoption or shared parental leave during redundancy. The new act extends this obligation to require the offer of suitable alternative employment starting from the notification of pregnancy and lasting up to 18 months after birth or adoption.

Harassment

The Worker Protection (Amendment of Equality Act 2010) Act received Royal Assent on 26 October 2023, and it took effect on 26 October 2024. It requires employers to take reasonable steps to prevent sexual harassment of employees and allows tribunals to increase compensation by up to 25% if this duty is breached.

Industrial Action

The Strikes (Minimum Service Levels) Act 2023 has replaced the Transport Strikes (Minimum Service Levels) Bill 2022 – 2023. This Act allows the Secretary of State to set Minimum Service Levels (MSLs) for strikes in relevant services, including healthcare.

When a strike occurs, employers may issue a work notice to the union, detailing which workers must maintain services and their responsibilities during the strike to meet MSLs. MSLs can apply to sectors like fire, ambulance and rail services, with the government considering their use to protect patient safety, potentially impacting nurses and doctors.

However, the Employment Rights Bill seeks to repeal this Act and introduce reforms, such as lowering recognition requirements for bargaining units and reducing the notice period for industrial action.

Working Time Regulations, Holiday Pay and TUPE

The Retained EU Law (Revocation and Reform) Act 2023 has repealed certain EU laws related to Working Time Regulations and TUPE, prompting the Government to introduce new regulations.

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 address holiday pay, working hours and  Transfer of Undertakings (Protection of Employment) regulations (TUPE). This amendment establishes a holiday accrual system for irregular hours and part-year workers, with guidance published by the government. 

Key dates include:

  • New pay and leave carry-forward rules effective 1 January 2024
  • Changes for part-year and irregular workers effective 1 April 2024 or later
  • Rolled-up holiday pay applies from leave years starting on or after 1 April 2024

Leave Year Rules:

  • 1 April to 31 March: New rules from 1 April 2024
  • 1 January to 31 December: New rules from 1 January 12025
  • 31 March to 31 March: New rules from 30 March 2025

Additional changes include:

  • Holiday accrual for irregular and part-year workers at 12.07% of hours worked
  • Simplified record-keeping requirements
  • Provisions for holiday carry-over
  • Updated TUPE consultation policies for businesses with fewer than 50 employees

Employers will need to update their policies to align with these changes.

Dismissal and Re-Engagement

A new statutory code of practice on dismissal and re-engagement went into effect on 18 July  2024. The code requires employers to explore alternatives to firing and rehiring through meaningful consultation with employees and their representatives. It provides guidance on avoiding and resolving conflicts that may arise during this process.

The Employment Rights Bill aims to prevent the exploitative use of fire and rehire by making such dismissals automatically unfair unless strict criteria are met.

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This article is for informational purposes only and presents a high-level overview. Legislation is constantly changing, so no action should be taken based on this article without legal counsel.