EMPLOYMENT

  • Holiday - part-year and irregular hours workers

    "2024-04-01">01 April 2024

    • In summer 2023, the Government carried out a consultation on holiday entitlement for part-year and irregular hours workers. There were a number of proposals to address the practical difficulties around calculating holiday entitlement for workers who work part year (e.g. term time only workers) or irregular hours (e.g. zero hours workers), following the Supreme Court case of Harpur Trust v Brazel.

    • The Government has published its response to the consultation and legislation to amend the Working Time Regulations 1998 so that:

      • part-year and irregular hours workers will accrue holiday entitlement at a rate of 12.07% of time worked

      • employers will be permitted to pay rolled-up holiday pay to part-year and irregular hours workers.

    • These changes will apply to holiday years starting on or after 1 April 2024.

  • National Minimum Wage and National Living Wage

    "2024-04-01">01 April 2024

    • The annual increase in the hourly rates of the national living wage and national minimum wage will take effect. In addition, the age at which the National Living Wage is payable will reduce from 23 to 21.

    • The new hourly rates are:

      • £11.44 for workers aged 21 or over (an increase from the current rates of £10.42 for workers aged 23 or over and £10.18 for workers aged 21-22)

      • £8.60 for workers aged 18-20 (an increase from the current rate of £7.49)

      • £6.40 for apprentices and workers aged 16-17 (an increase from the current rate of £5.28).

  • Flexible working

    "2024-04-06">06 April 2024

    • At the end of 2021 the Government published a consultation on making the right to request flexible working available from the start of employment (currently only employees with at least six months' service have the right to request flexible working).

    • The Government has published its response to the consultation, which includes the following measures:

      • the right to request flexible working will be a day one right
      • employers will have a new duty to consult the employee before rejecting a flexible working request
      • there will be a two-month period to make a decision on the request (reduced from the current three month period)
      • employees will be allowed to make two statutory requests in any 12 month period (rather than one as is currently the case).

    • The Employment Relations (Flexible Working) Act 2023 will introduce the duty to consult the employee on the request, the two-month period for the decision and increasing the number of requests allowed in a 12 month period.

    • The removal of the six-month service requirement for making a request will be introduced by the Flexible Working (Amendment) Regulations 2023 which come into force on 6 April 2024.

    • Acas has updated the statutory Code of Practice on handling flexible working requests following a consultation in 2023. The updated Code of Practice is expected to come into effect on 6 April 2024.

  • Redundancy and pregnancy/maternity leave

    "2024-04-06">06 April 2024

    • Employees who are made redundant during maternity leave must be offered a suitable alternative vacancy if there is one.

    • Following a consultation in 2019, the Government confirmed that it will extend this redundancy protection so that it begins when the employee notifies the employer of the pregnancy and ends 18 months after the birth. The equivalent redundancy protection for adoption leave will be extended until 18 months following the adoption, and similar extensions will apply in relation to shared parental leave (subject to a minimum shared parental leave period of at least six weeks).
    • The Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024 will introduce these changes with effect from 6 April 2024. The changes will apply to employees whose maternity or adoption leave ends on or after 6 April, or who take at least six consecutive weeks of shared parental leave starting on or after 6 April 2024.

  • Paternity leave

    "2024-04-06">06 April 2024

    • The paternity leave regulations will be amended to increase flexibility, so that:

      • fathers/partners will be able to take paternity leave in two separate one week blocks, instead of a single block of one or two weeks;
      • the period within which paternity leave can be taken will be extended from the current period of eight weeks after birth/adoption, to one year after birth/adoption;
      • the notice period for the paternity leave start date will reduce from 15 weeks before the birth to 28 days' notice before leave is taken.

    • These changes will apply where the expected week of childbirth, or expected date of placement for adoption, is on or after 6 April 2024.

    • These changes have been made following a consultation which the Government carried out in 2019, on measures to support working families including:

      • how to improve paternity and shared parental leave and pay, including the possibility of dedicated "pots" of leave for each parent
      • requiring employers with 250 or more employees to publish their family related leave and pay policies on their website.

    • The Government published its response to the consultation in summer 2023, in which it outlined the paternity leave changes, but confirmed it would not be making any changes to maternity, adoption or shared parental leave.

  • Carers' leave

    "2024-04-06">06 April 2024

    • The Government consulted in 2020 on a new form of unpaid statutory leave for employees with unpaid caring responsibilities, such as care of an elderly relative.

    • The Government's response to the consultation confirmed that it would introduce a new right for carers to take unpaid leave of one week per year, to help manage their caring responsibilities.

    • The new right is contained in the Carer's Leave Regulations 2024 and will come into effect on 6 April 2024.

  • Unfair Dismissal and Statutory Redundancy Pay

    "2024-04-06">06 April 2024

    • The maximum compensatory award for unfair dismissal will increase to the lower of £115,115 and a year's pay (from the lower of £105,707 and a year's pay).

    • The maximum amount of a week's pay (for calculating the unfair dismissal basic award and statutory redundancy pay) will increase to £700 (from £643).

    • The increased amounts will apply to dismissals which take effect on or after 6 April 2024.

  • Statutory Maternity, Paternity, Adoption and Shared Parental Pay

    "2024-04-07">07 April 2024

    • The weekly rate of statutory maternity, paternity adoption and shared parental pay will increase to £184.03 (from £172.48).

  • Statutory Sick Pay

    "2024-04-07">07 April 2024

    • The weekly rate of statutory sick pay will increase to £116.75 (from £109.40).

  • Business sales/service provision changes (TUPE)

    "2024-07-01">01 July 2024

    • The Government carried out a consultation on proposed post-Brexit changes to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), in relation to information and consultation of employees.

    • Currently, employers are required to inform and consult employees through trade union representatives or (if the employer does not recognise a trade union) through elected employee representatives, regardless of the number of employees involved.

    • The Government's response to the consultation confirms that TUPE will be amended so that employers will be able to inform and consult employees directly where either the employer has fewer than 50 employees or fewer than ten employees are affected by the TUPE transfer.

    • New regulations will bring these changes into effect for transfers taking place on or after 1 July 2024.

  • Right to request a predictable work pattern

    September 2024

    • There will be a new right for workers to request a more predictable work pattern, under the Workers (Predictable Terms and Conditions) Act 2023. Employers will have to follow a set process for considering the request and will be able to refuse the request on certain grounds (as with the process for flexible working requests).

    • This new right is expected to come into effect in around September 2024.

  • Harassment

    October 2024

    • In spring 2018, the Equality and Human Rights Commission (EHRC) published a report, Turning the tables: ending sexual harassment at work, which made a number of recommendations to strengthen the protection for victims of sexual harassment.

    • The Government has committed to develop a statutory code of practice on sexual harassment and in 2019 consulted on further measures to address sexual harassment at work. The Government responded to the consultation in 2021.

    • As a result of this consultation, the Worker Protection (Amendment of Equality Act 2010) Act 2023 will introduce a new duty on employers to take reasonable steps to prevent sexual harassment at work, with a 25% uplift in compensation where the employer has breached this duty.

    • The EHRC statutory Code of Practice and technical guidance on harassment at work will be amended to reflect the new duty to prevent sexual harassment. The proposed changes will be subject to consultation in due course.

    • The new duty to prevent sexual harassment is expected to come into force in October 2024. We have produced a short briefing on the changes and how employers can prepare.

  • Neonatal leave and pay

    April 2025

    • A new entitlement to up to 12 weeks' neonatal leave and pay for parents of premature babies is to be introduced under the Neonatal Care (Leave and Pay) Act 2023. The new right will apply where a baby starts neonatal care (lasting at least 7 days) within 28 days of being born.

    • This new right is expected to come into effect in around April 2025.

  • Financial services diversity

    2025

    • The Financial Conduct Authority (FCA) is consulting on a proposed new regulatory framework on diversity and inclusion in the financial sector.

    • Under the proposals, non-financial misconduct will be incorporated into the FCA's Conduct Rules and such misconduct will be expressly relevant for assessments of fitness and propriety for certified staff and regulatory references.

    • It is proposed that large firms, with 251 or more employees, will also be required to set diversity targets and report annually on certain diversity and inclusion matters.

    • The FCA is expected to publish a policy statement later in 2024, with the new rules coming into force 12 months after that. There is more detail about the proposals in our briefing.

  • Employment status

    • Following the publication of the Independent Review of Employment Practices in the Modern Economy (known as the Taylor Review) in 2017, the Government published the Good Work Plan setting out a number of reforms aimed at improving the position of workers including:

      • refining the employment status test and developing an online employment status tool

      • making it easier for casual workers to establish continuity of employment (by increasing the gap required between contracts for breaking continuity from one week to four weeks).

    No date has been given for when these changes may be introduced.

    • The Government also published an employment status consultation in 2018 which proposed to legislate to improve clarity around employment status tests and also align the tests for employment rights and tax purposes.

    • The Government's response to the employment status consultation in July 2022 confirmed that it will not be introducing any new legislation. Instead, the Government has published new guidance on employment status and employment rights for HR and legal professionals.

    • Separately, the Government consulted in 2019 on specific measures to improve protection for zero hours workers including proposals for compensation for cancelled shifts, minimum notice of working hours and the right to move onto a fixed hours contract. The Government's response to this consultation is awaited, but there will be a new right to request predictable work pattern (see above).

    • The Government has commissioned the Future of Work review which was conducted during 2022 which will build on Government commitments following the Taylor Review.

    • The Labour party has stated that if it is elected it intends to create a single worker status, with the same basic rights to sick pay, holiday pay, parental leave and unfair dismissal protection, with no qualifying period for these rights.

  • Non-compete covenants

    • In 2021, the Government consulted on proposed changes to non-compete covenants. There were two options under consideration: (i) requiring that the employer pays part of the employee's salary during a non-compete period or (ii) banning non-compete covenants altogether.

    • The Government responded to the consultation in May 2023 and stated that it would not ban non-compete covenants (or require any payment for them) but will legislate to limit all non-compete covenants to three months maximum. There is no timeframe for when this change is likely to take place. We have produced a short briefing on the proposed changes to non-compete covenants.

  • Changing terms

    • In 2023, the Government consulted on a draft statutory Code of Practice on the use of "fire and rehire" to change terms of employment.

    • The Government responded to the consultation in February 2024 and has published the final version of the draft Code of Practice. The Code sets the steps which employers should follow when seeking to change terms, including meaningful consultation, and emphasises that dismissal and re-engagement should be a last resort. Where an employer fails to follow the Code, the Employment Tribunal will have the power to increase compensation awarded for any relevant claim by up to 25%.

    • The Code of Practice is expected to come into force in summer 2024.

  • Sex discrimination and menopause

    • In 2023 the Government responded to a report by the Women and Equalities Committee on menopause and the workplace, stating that it would not introduce menopause leave or a model policy, but would appoint a menopause champion and work with employers on a communications campaign.

    • In October 2023, the government published a policy paper with an update on the work of the menopause champion, including reports on engagement with employers.

    • In February 2024, the EHRC published guidance for employers on menopause in the workplace.

    • The Labour party has stated that if it is elected to government it will introduce a requirement for employers with more than 250 employees to publish and implement a menopause action plan.

  • Diversity and pay reporting

    • In August 2018, the Equality and Human Rights Commission (EHRC) published a report on disability and ethnicity pay gaps and progression. The EHRC plans to produce guidance for employers on collecting, using and reporting data on employee ethnicity and disability.

    • The Government consulted on ethnicity pay gap reporting in 2018, but has since indicated that it does not intend to introduce mandatory reporting for the time being, and instead has published guidance for employers on voluntary ethnicity pay gap reporting.

    • In late 2021, the Government published a consultation on disability workforce reporting, seeking information on current employer practice and possible approaches to compulsory disability reporting. The Government's response is awaited.

    • The Labour party has stated that if it is elected it would introduce mandatory ethnicity and disability pay gap reporting for larger employers.

  • Settlement and confidentiality

    • In 2019, the Government consulted on the use of confidentiality provisions in settlement agreements in discrimination and harassment cases. The Government has responded to this consultation and stated that it will legislate to:

      • ensure that settlement agreements will not prevent disclosures to the police or healthcare or legal professionals

      • require confidentiality clauses in employment contracts and settlement agreements to set out their limitations clearly

      • require individuals to take legal advice on the confidentiality provisions in a settlement agreement.

    • No date has been given for when the legislation is likely to be introduced.

  • Industrial action

    • The Government has opened a consultation on a proposed change to the law which would allow agency workers to cover the work of staff who are on strike. Currently it is a criminal offence for an agency to supply workers to cover strikes.

    • The Government previously made this change to the law in July 2022, but the change was reversed following a High Court ruling in July 2023. The High Court ruled that there had been insufficient public consultation prior to the change being made.

    • The consultation closed on 16 January 2024.

  • Enforcement of employment rights

    • The Government is consulting on introducing fees to bring claims in the Employment Tribunal. It is proposed that there will be a £55 fee for all employment tribunal claims. (A previous fees regime which was introduced in 2013 was overturned by the Supreme Court in 2017 because of its disproportionate impact on access to justice.)
    • The Government has announced that it will create a single enforcement body for employment rights which will enforce national minimum wage, labour exploitation and modern slavery, holiday pay for vulnerable workers and statutory sick pay. The timing for this change has not been specified.

EU EMPLOYMENT LAW DEVELOPMENTS

  • Whistleblowing

    01 December 2021 onwards

    • The EU Whistleblowing Directive introduces various measures to protect whistleblowers, which cover not just employees and workers but also self-employed contractors, former employees and workers, and job applicants.

    • Key features of the Whistleblowing Directive include:

      • Employers with 50 or more staff are required to establish secure internal whistleblowing channels and procedures
      • Employers must provide feedback to whistleblowers within a reasonable time (and a maximum of three months)
      • A whistleblower may choose to report to a regulator without reporting internally to their employer first
      • A whistleblower does not need be acting in good faith or in the public interest to gain protection under the law

    • EU countries were required to implement the Whistleblowing Directive by 17 December 2021 (although private sector employers with 50 to 249 employees have until 17 December 2023 to establish internal whistleblowing channels). Some EU countries have not fully implemented the Directive yet.

    • The UK already has comprehensive whistleblowing laws in place, but some elements of the directive are wider than UK laws. For example the directive requires employers to put in place internal whistleblowing channels, and it applies to job applicants and self-employed contractors as well as employers and workers.

  • Parents and carers

    01 August 2022 onwards

    • The EU Directive on work-life balance for parents and carers grants new rights including:

      • Ten days of paid leave for fathers or second parents, to be taken around the birth of a child
      • A right to four months' parental leave, of which two months are paid and non-transferable between parents
      • Up to five working days' unpaid leave per year for carers
      • The right for working carers to request flexible working arrangements.

    • EU member states were required to implement the Directive by August 2022 but some countries are still in the process of doing so.

    • In the UK, employees may take paternity leave and shared parental leave. From 6 April 2024, employees will have a right to unpaid carers' leave, and all employees will be able to request flexible working from day one (see Carers' Leave and Flexible Working above).

  • Zero hours and irregular hours workers

    01 August 2022 onwards

    • An EU Directive on Transparent and Predictable Working Conditions aims to introduce more certainty for zero hours or irregular hours workers, and includes:

      • A requirement for employers to provide workers who have an unpredictable work pattern with a written statement of the number of guaranteed hours and pay
      • A ban on probationary periods longer than six months (unless justified)
      • A right to request more predictable working conditions after six months
      • A right to compensation if an assignment if cancelled at short notice.

    • EU member states were required to implement the Directive by August 2022 but some countries are still in the process of doing so.

    • In the UK, legislation is in progress which will give workers the right to request more predictable working conditions (see Employment Status above).

  • Minimum Wage

    "2024-11-01">01 November 2024

    • The EU Directive on adequate minimum wages requires EU member states to provide an adequate statutory minimum wage, promote collective bargaining and improve enforcement and monitoring.

    • EU member states are required to implement the Directive by 15 November 2024.

    • The UK has had minimum wage laws in place since 1998.

  • Equal pay

    "2026-06-01">01 June 2026

    • The EU Directive on equal pay and pay transparency introduces various measures to improve equal pay enforcement and transparency.

    • Under the Directive, employers with at least 250 employees will be required to publish gender pay gap information annually, and employers with at least 100 employees will have to publish this information every three years.

    • The Directive also introduces measures relating to pay in recruitment and promotion including:

      • A requirement for employers to inform job applicants about the starting salary/pay before interview
      • A ban on asking job candidate about their pay history
      • A right for workers to ask employers for information about pay levels and pay and promotion criteria

    • EU member states are required to implement the Directive by 7 June 2026.

    • UK employers with 250 or more employees have been required to publish annual gender pay gap reports since 2018. The UK government is running a pay transparency pilot scheme under which participating employers will disclose salary in the job advertisement and not ask about salary history.

  • Artificial intelligence

    • The European Parliament has approved an AI Act to harmonise AI rules across the EU, which would cover AI systems used by employers in the EU. Most of the provisions in the Act are expected to come into force in 2026.

    • Separately, the European Commission has adopted a proposal for a Directive which will introduce liability for damage related to the use of artificial intelligence (AI), which will extend to the use of AI in employment (such as discrimination arising from a recruitment process using AI technology). There is no date yet for when the Directive is likely to be published.

    • The UK government is encouraging regulators to implement safeguards in relation to AI but is not currently proposing any legislation in this area.

  • Gig economy "platform workers"

    • The EU Commission is proposing a new Directive on improving working conditions for individuals working through digital labour platforms (such as taxi or food delivery apps).

    • Under the proposed Directive:

      • There would be a list of criteria to decide whether the platform operator is an "employer"
      • Businesses would be required to inform workers of the ways in which they use algorithms for example for monitoring and work allocation
      • Workers would have the right to contest automated decisions and have them rectified

    • The EU Commission is consulting on these proposals and there is no date yet for when the Directive is likely to be published.

    • In the UK, the Taylor Review made various recommendations in relation to the gig economy including more clarity around the employment status tests, but there have not been any legislative proposals in relation to this (see Employment Status above).

IMMIGRATION

  • Immigration sponsored work visa reforms

    Ongoing - phased programme 2021 to 2024

    • The Government set out its plan to make changes to the sponsorship system in its sponsorship roadmap policy paper with reforms to the sponsorship system being introduced gradually since 2021 and expected to continue into 2024.

    • The changes include improving the processing time for sponsor licence applications and enhancing immigration sponsorship compliance systems. An updated sponsorship management system (SMS) portal is expected to be introduced as well as improvements to the visa application process for applicants during 2023 and into early 2024.

    • Changes to the SMS will allow sponsor employers to carry out post licence updates and comply with reporting obligations more easily as well as allowing automated data checks for licence applications.

    • The requirement to renew sponsor licences on a four-yearly cycle will be abolished from 6 April 2024.

  • Biometric residence permits being phased out and digital immigration system

    Early 2024 onwards

    • The Government will slowly be replacing physical visa documents (including biometric residence permit ('BRP) cards) with an online record of an individual's immigration status (known as an eVisa).

    • These eVisas are already being issued to EU nationals applying for UK immigration status, as well as certain nationalities when they apply for their visas from within the UK and they do not have a BRP card.

    • Such applicants access their UK immigration status via an online portal and are able to share information on their status online with prospective employers or landlords to evidence of their right to remain in the UK.

    • All BRP cards being issued currently all have an expiry date of 31 December 2024 indicated on the face of the card, irrespective of the length of visa granted to the applicant.

    • The Government is expected to provide updates throughout 2024 in relation to these changes which will affect both employers when completing right to work checks and individuals who will need to register for an online account.

    • This is part of the streamlining and digitisation of the UK's visa system, with a move towards a digital immigration system.

  • Significant changes to employer sponsored work visas

    "2024-04-04">04 April 2024

    • From 4 April 2024, significant changes will be introduced to employer sponsored work visas.

    • The minimum salary threshold will increase from the current £26,200, to a new rate of £38,700, or the 'going rate' salary level for the job type if this is higher.

    • The minimum 'going rate' salaries for each job type will also increase and in some cases the minimum salary level will be higher than £38,700 threshold.

    • The current 'Shortage Occupation List' (or SoL) will be replaced by the new 'Immigration Salary List' which has a substantially reduced number of roles, and excludes tech sector roles which are on the current SoL

  • Electronic travel authorisations

    Ongoing - Phased programme to 2025

    • A new universal 'permission to travel' requirement is gradually being introduced in phases, and will require everyone wishing to travel to the UK (except British citizen, Irish citizens and legal residents of Ireland who are travelling to the UK from Ireland, Guernsey, Jersey or the Isle of Man (i.e. the Common Travel Area)) to seek permission in advance unless they hold a UK visa or residence status.

    • The Electronic Travel Authorisation (ETA) will be similar to the ESTA system in the United States.

    • The ETA launched for Qatari nationals on 15 November 2023 and in February 2024, it was extended to apply to nationals of Bahrain, Jordan, Kuwait, Oman, United Arab Emirates and Saudi Arabia. The full scheme will continue to be rolled out in phases and is expected to be in place fully by the end of 2024/start of 2025, by which time, any non-British or Irish national coming to the UK for any purpose will need either an ETA or a visa.

  • Introduction of European Travel Information and Authorisation System (ETIAS)

    2024/2025 onwards

    • The European Travel Information and Authorisation System (ETIAS) is set to be introduced during 2024 and will require non-EU visitors to the participating EU countries to apply for electronic authorisation (similar to the US ESTA) before they travel.

    • British citizens do not require visas to visit the EU or Schengen countries, but post-Brexit, they must qualify for entry under the visitor rules, with activities subject to strict limits, including a prohibition against undertaking productive work. Our interactive map shows the rules which apply in different European countries.

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