Keeping up with employment law changes can often feel like a challenge; perhaps even more so recently with the planned reforms to employment rights announced by the Government.

To help, we have compiled a summary of the main recent updates over the last year and what you can expect  to see on the horizon as Labour implement change.

Changes to timing and notice of paternity leave - March 2024

The Paternity Leave (Amendment) Regulations 2024 updated the statutory provisions by allowing employees to choose either two separate weeks of leave or a continuous block of one or two weeks. The window for taking paternity leave is now up to 52 weeks following the child’s birth or adoption placement (previously 56 days). Employees must provide notice of their intention to take leave by the 15th week before the expected week of childbirth, with at least 28 days’ notice required for each period of leave.

Rolled up holiday pay for irregular hour and/or part year workers - April 2024

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 amend the Working Time Regulations 1998 to allow rolled-up holiday pay for workers with irregular hours or part-year schedules. This means holiday pay can be included in each pay period rather than paid at the time leave is taken. Holiday pay will be calculated at 12.07% of hours worked in each pay period for those with a 5.6 week entitlement, applicable from the first year of employment onwards, and applies to holiday years starting on or after 1 April 2024.

Changes to statutory flexible working request rules - April 2024

The Employment Relations (Flexible Working) Act 2023 introduced new rules allowing employees to make flexible working requests from their first day of employment (previously 26 weeks' service required). Employees can now submit two requests within any 12-month period, and employers must respond within two months.

Enhanced redundancy protection for pregnant employees and those returning from family leave - April 2024

Under the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 and its accompanying 2024 Regulations, redundancy protections now apply from the point the employee notifies the employer of pregnancy and continue until 18 months after childbirth or placement for adoption for those returning from maternity, adoption, or shared parental leave. During this protected period, employees must be offered suitable alternative roles (where a vacancy exists) in redundancy situations.

Carer’s Leave - April 2024

The Carer's Leave Act 2023 provides employees with up to one week of unpaid leave each year to arrange or provide care for a dependant. This statutory right applies across England, Wales, and Scotland.

Direct TUPE consultation for small businesses and where fewer than 10 employees transfer - July 2024

Under the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, employers may consult directly with affected staff (rather than electing representatives) where the employer has fewer than 50 employees or where fewer than 10 employees are transferring, regardless of overall size of the organisation.

Statutory code of practice on "fire and rehire" - July 2024

A statutory Code of Practice on contractual changes requires employers to consult fairly when proposing changes to terms and conditions. Dismissal and re-engagement should only occur as a last resort. Failure to follow the Code may result in tribunal award uplifts of up to 25%.

Changes in relation to Employee Tips - October 2024

Under the Employment (Allocation of Tips) Act 2023 employers are required to give all tips, gratuities and service charges to workers without any deductions. Employers must also ensure that all tips are distributed fairly.  Employers are required to adhere to the statutory code of practice for distributing tips fairly.

Duty to prevent sexual harassment of employees - October 2024

The Worker Protection (Amendment of Equality Act 2010) Act 2023, imposes a proactive duty on employers to take reasonable steps to prevent sexual harassment at work. Future developments under the Employment Rights Bill aim to strengthen this duty further by:

• Requiring employers to take all reasonable steps;
• Introducing regulations detailing what constitutes reasonable steps;
• Reintroducing employer liability for third-party harassment, not limited to sexual harassment.

Changes to National Minimum Wage - April 2025

The hourly rates of the national minimum wage increase as follows:

• Workers aged 21 and over: £12.21/hour (up from £11.44)
• Ages 18 to 20: £10.00/hour (up from £8.60)
• Ages 16 to 17: £7.55/hour (up from £6.40)
• Apprentice rate: £7.55/hour (up from £6.40)
• Accommodation offset: £10.66/day (up from £9.99)

Increase to the percentage of statutory family-related pay small employers can recoup - April 2025

The reclaimable amount of statutory family-related pay increases for small employers from 103% to 108.5%. This includes maternity, adoption, paternity, shared parental, neonatal, and parental bereavement pay. To qualify, employers must have had a national insurance bill of £45,000 or less in the previous tax year. Larger employers remain entitled to reclaim 92%.

Statutory redundancy pay and employment tribunal award limits increase - April 2025

The weekly cap for redundancy payments and tribunal awards rises to £719. The compensatory award limit for unfair dismissal claims increases to £118,223.

Increase in employer NICs and changes to employment allowance - April 2025

Employer NICs increase from 13.8% to 15%. The secondary threshold drops from £9,100 to £5,000 until April 2028. Employment Allowance increases to £10,500 and is no longer restricted to employers with NIC bills under £100,000.

Statutory maternity pay and other family-related statutory pay rates increase - April 2025

Weekly rates of statutory maternity, paternity, adoption, shared parental, and parental bereavement pay rise from £184.03 to £187.18. The qualifying earnings threshold increases from £123 to £125 per week.

Statutory Sick Pay rate increases - April 2025

SSP rate increases to £118.75 per week with effect from 6 April 2025. The lower earnings limit of £125 to qualify applies.

Neonatal Care Leave and Pay - April 2025

Under the Neonatal Care (Leave and Pay) Act eligible employees will be entitled to up to 12 weeks of leave (and pay, if qualifying) if their baby requires neonatal care. This leave is in addition to existing family leave entitlements and applies to babies born on or after 6 April 2025.

Upcoming Changes

The following are relevant upcoming changes, with implementation dates to be confirmed. Please note, the list is not exhaustive of all upcoming changes:

Paternity bereavement leave: The Paternity Leave (Bereavement) Act 2024 will provide a day-one right to paternity leave in cases where the mother (or adopter) dies. The legislation requires secondary regulations to implement the right and set out the detail. No commencement date has yet been confirmed.

Removal of qualifying period for paternity leave and ordinary parental leave: The Employment Rights Bill will remove the current qualifying periods, making both paternity leave and ordinary parental leave day-one rights. Changes are not anticipated prior to 2026.

Statutory right to bereavement leave: The Employment Rights Bill will broaden the existing right to parental bereavement leave to cover other types of bereavement, including pregnancy loss (e.g. miscarriage). Regulations will define eligible relationships and the scope of this right. Changes are not anticipated prior to 2026.

Employer liability for third-party harassment: The Employment Rights Bill will introduce explicit employer liability for third-party harassment (not limited to sexual harassment), where the employer has failed to take all reasonable steps to prevent it. Changes are not anticipated prior to 2026.

Sexual harassment added to whistleblowing legislation: The Employment Rights Bill will ensure that disclosures relating to sexual harassment qualify for protection under the whistleblowing provisions of the Employment Rights Act 1996. Changes are not anticipated prior to 2026.

Changes to eligibility for statutory sick pay: The Employment Rights Bill includes provisions to make statutory sick pay (SSP) available to all workers. The proposed changes include removing the lower earnings limit, removing the three-day waiting period for eligibility and introducing a rate of 80% of normal earnings for low-paid workers earning below the full SSP rate. The changes are not expected to be implemented before 2026.

Reform of zero hours contracts: The Employment Rights Bill includes provisions to reform rules on the use of zero hours contracts. The change is not expected to be implemented before 2026. The Bill will:

• Allow workers on zero/low-hours contracts to request a contract reflecting their usual hours.
• Require reasonable notice for shifts.
• Provide a right to compensation where shifts are cancelled, changed, or curtailed without adequate notice.
• Extend protections to agency workers as well.
• Separate regulations will set out further detail and procedural requirements. It is not yet known when these measures will come into force.

Extension of time limits for bringing employment tribunal claims: The time limit for bringing employment tribunal claims will increase from three months to six months across all claim types, including unfair dismissal and discrimination. This change is not expected to be implemented before 2026.

Gender pay gap and menopause action plans: The Employment Rights Bill will require larger employers (250 employees+) to publish action plans showing the steps they have taken to support employees going through the menopause and address the gender pay gap. Public sector employers are excluded. The change is not expected to be implemented before 2026.

Protection against dismissal for pregnant employees and those on or returning from family-related leave: Dismissals during pregnancy, maternity leave, and up to six months post-return will only be lawful in defined circumstances (to be specified in future regulations). These protections will also apply to adoption and shared parental leave. This change is not expected to be implemented before 2026.

Reform of rules on dismissal and re-engagement: The Employment Rights Bill includes provisions to reform the rules on the use of dismissal and re-engagement (known as "fire and rehire"). A dismissal will be automatically unfair if it is due to an employee’s refusal to accept a contractual variation; or done to re-engage them (or someone else) on varied terms; unless the employer can prove the variation was necessary due to financial hardship and could not have been reasonably avoided.  This change is not expected to be implemented before 2026.

Reform of the right to request flexible working: The Employment Rights Bill will preserve the existing grounds for refusing flexible working but will require employers to demonstrate that their refusal was reasonable, including providing written reasoning. This change is not expected to be implemented before 2026.

Removal of two-year qualifying period for unfair dismissal: The Employment Rights Bill proposes the removal of the two-year qualifying period to claim unfair dismissal. Secondary regulations will provide further rules around an “initial period of employment”.  This change is not expected to be implemented before Autumn 2026.

Need Support?

For tailored guidance please contact us on 033 33 215 005 or email websiteenquiries@wirehouse-es.com.