Key employment law changes in 2024

In this article, employment solicitor Omar Ghaffoor explores key employment law changes in 2024 — from the right to be entitled to an offer of a suitable alternative role as a pregnant employee in a redundancy situation, to the ability for workers in the gig economy to seek certainty in their terms with respect to their working patterns.

It is hoped that these legislative changes, which are expected to come into force from April 2024, will help make the workplace a fairer space for all:

  1. Protection from Redundancy (Pregnancy and Family Leave) Act 2023
  2. Carer’s Leave Act 2023
  3. Neonatal Care (Leave and Pay) Act 2023
  4. Worker Protection (Amendment of Equality Act 2010) Act 2023
  5. Workers (Predictable Terms and Conditions) Act 2023
  6. Increase in tribunal compensation limits with effect from 6 April 2024.

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023

At present only employees on maternity leave, shared parental leave and adoption leave enjoy enhanced protection in a redundancy situation, under the Employment Rights Act 1996, which requires employers to offer first refusal of any suitable alternative role if one is available in a redundancy situation.

Whilst there is other legal protection available under the Equality Act 2010 which prohibits less favourable treatment for those who are pregnant, on maternity leave or family leave, this protection falls away when an employee returns to work. This means an unscrupulous employer may wait for an employee to return from maternity leave before making them redundant.

The Act, which was given the royal assent on 24 July 2023, and is expected to come into force on 6 April 2024, essentially prevents this from happening by providing essential safeguards for a wider group of individuals including pregnant employees and those employees that are returning from family leave.  The Act grants priority to pregnant employees from the moment they notify the employer until 6 months after they return to work (including employees returning from parental leave) when considering redeployment opportunities during a redundancy situation and also requires the offer of a suitable alternative role before they are made redundant.

The Neonatal Care (Leave and Pay) Act 2023

The Act, which was passed in 2023, and is expected to come into force in April 2025, will grant parents of newborn babies who are hospitalised in their first 28 days of life for a period of seven days or more, the right to neonatal leave and pay for up to 12 weeks.

This is a “day one” right – available to employees from the first day they start employment and provides protection for parents with babies who require crucial care and will allow them more time to spend with their babies without having to worry about their pay.

The Worker Protection (Amendment of Equality Act 2010) Act 2023

Expected to come into force in October 2024, this key piece of legislation aims to amend the Equality Act 2010 by introducing a new proactive requirement on employers to take “reasonable steps” to prevent sexual harassment in the workplace.

This means that employers may face increased financial penalties where they have failed to take steps to protect their employees.

The law originally also imposed liability for harassment of employees by third parties in certain situations – but this provision has been removed, which has watered down the new protection.

The Act will be supported by a new statutory code of practice currently being produced by the Equality and Human Rights Commission so there is more guidance to follow in this area.

The Workers (Predictable Terms and Conditions) Act 2023

Expected to come into force in September 2024, the Act is designed to increase protection for workers in the gig economy in relation to working patterns, allowing them to request more predictable terms and conditions of employment.

Key increase to Employment Tribunal compensation limits with effect from 6 April 2024

  • Maximum compensatory award for unfair dismissal: £105,707 – £115,115
  • Weekly pay: £643 – £700
  • Minimum basic award for some forms of unfair dismissal (health and safety, employee representatives, trade union related dismissals) from £7,836 – £8,533
  • Statutory guaranteed pay increases from £35 – £38 per day

The changes are subject to parliamentary approval and are due to take effect from 6 April 2024.

Employment Relations (Flexible Working) Act 2023

Due to come into force on 6 April 2024, this Act will create a day one right to request flexible working as opposed to the current 26 weeks’ service requirement.

Employees will be able to make two requests in any 12-month period as opposed to the current position which allows just one request in any 12-month period.

Employers are also required to communicate their decision to the employee within two months as opposed to the current three-month timescale.

Employees are no longer required to justify the effects of the flexible working request, this is designed to making flexible working more accessible to more people although the reasons why an employer can lawfully refuse a request for flexible working remain the same which include commercial factors for the refusal or if the request will have a negative effect on the quality and on the business’s ability to meet consumer demands and performance targets.