5 Employment law changes for 2024 and how they could impact your business | 3-minute read
With each new tax year come new and updated regulations for employers. As a business, it’s vital that you keep up with changing legislation and ensure that you remain fully compliant.
Here are five employment law changes that your business needs to prepare for in 2024:
Increase in the National Living Wage
The National Living Wage increases in April each year. From April 2024, the National Living Wage will rise from £10.42 to £11.44 per hour. For the first time, this will apply to those aged 21 and over, lowering the threshold from 23 years and over.
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Calculating holiday pay and leave
Under previous regulations, businesses were required to give holiday pay at the time their employees took annual leave. For holiday leave years starting from April 2024, businesses are able to provide rolled up holiday pay, meaning it can be included in worker’s hourly rate. It’s worth noting, however, that this only applies to employees working irregular hours, such as those on zero hours contracts.
Employment Rights (Flexible Working) Act 2023
With the introduction of new flexible working laws, millions of UK workers will have more flexibility over where they work, and when.
The new act will enable employees to request flexible work arrangements from their first day of employment. Under previous regulations, employees had to wait 26 weeks to request flexible working such as part-time hours, term-time working, flexitime, compressed hours, and remote working.
The new regulations also mean that, if employers reject any such requests, they must explain the reasons why. They must also respond within 2 months, rather than 3 months under the previous regulations.
Protection from Redundancy (Pregnancy and Family Leave) Act 2023
From 6th April 2024, the law protecting employees on maternity leave, shared parental leave, or adoption leave from redundancy will extend to pregnant employees and those who have recently returned from maternity, adoption, or shared parental leave.
Carer’s Leave Act 2023
The Carer’s Leave Act covers unpaid leave for employees with caring responsibilities. Available to all employees from day one of their employment, the new legislation applies to those caring for a parent, child, spouse, civil partner, or any other dependant who needs care due to disability, old age, or illness or injury.
This leave is unpaid and the maximum duration is one week per year.
As an employer, you can’t deny a request for carer’s leave, however you are able to postpone it if it will significantly disrupt your business operations.
How to ensure your business stays up to date with legislation changes
To ensure your business remains compliant and up-to-date with employment law and legislation changes, you should:
- Review all payroll and HR procedures and update them where necessary
- Update all employee handbooks in line with the new regulations and to reflect your updated procedures
- Ensure managers and those dealing with payroll and accounts are trained in the new policies so they are ready to implement them
- Update any payroll and accounts software, as well as systems that manage leave requests etc.
Why choose React Accountancy?
At React Accountancy, we provide practical and value for money accounting services to our clients. From large businesses to independent outfits, we cover everyone.
With a wealth of industry knowledge and experience, we can work closely with you to ensure all your needs are met and our services are tailored to your specific needs.
We believe in providing a no jargon accounting service and have an open and honest relationship with our clients. Our accountants are dedicated to helping you make the most of your money.
From tradespeople to small businesses, and everything in between, we fully understand the complexities of accountancy and that’s why we offer a wide range of accounting service.
To find out more about how we can help, get in touch with the expert team today.
We provide our services across Manchester, Stockport, London, Birmingham, Cardiff, Bristol, Glasgow, Leeds, Nottingham, Leicester, Edinburgh, Sheffield, Bradford, Coventry, Liverpool and Belfast.
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