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Employment Law Updates 2024

Updated: Apr 16


A big blue book on a desk with Employment Law printed on the front

This year is a busy one for employment law legislation. In addition to the usual annual increases to statutory rates, there are a number of important upcoming changes that employers need to know about, and this blog focuses on these changes.



Extension of National Living Wage


From 1 April 2024, the National Living Wage, the highest minimum wage band, will apply to 21-year-olds rather than workers aged 23 and over.


 

National Minimum Wage


Employers should prepare for the annual increases in the following statutory pay rates from 1 April 2024:

 

  • Apprentices from £5.28 to £6.40 per hour

  • Workers aged 16 to 17 from £5.28 to £6.40 per hour

  • Workers aged 18 to under 21 from £7.49 to £8.60 per hour

  • National living wage – now for those aged 21 and over, from £10.42 to £11.44 per hour



Apprentices


Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19

  • aged 19 or over and in the first year of their apprenticeship


Therefore, an apprentice aged 19 or over in the first year of their apprenticeship can be paid the apprentice minimum wage.


After the first year of their apprenticeship, they will be entitled to the National Minimum/Living wage for their age.


Example – April 2024 rates


Employees aged 21 in their first year of an apprenticeship could be paid £6.40 per hour.

After one year of their apprenticeship, their wage would increase to £11.44 per hour.



Sick Pay


From 6 April 2024 increases from £109.40 to £116.75 per week;


 

Family-related Statutory Pay

 

From 7 April 2024, the rates of statutory:

 

·      maternity pay

·      paternity pay

·      adoption pay

·      shared parental pay

·      parental bereavement pay

 

Increase from £172.48 to £184.03 per week.



Holiday Pay


The changes include introducing new holiday calculation rules intended to simplify the rules for part-year workers, such as those who work term-time only. They are paid by the hour, and those who work irregular hours are casual workers. The most significant changes are outlined below.


Calculation of holiday entitlement


For leave years starting on or after 1st April 2024, holiday entitlement for some workers will accrue at a rate of 12.07% (or a higher percentage if they are entitled to more than the statutory minimum) of the number of hours worked in each pay period. Provided they meet the new definition of a part-year worker or an irregular-hours worker, this should simplify calculating holiday entitlement.


Rolled-up holiday pay


Employers of part-year workers and irregular-hours workers will be able to opt to pay them rolled-up holiday pay, an uplift to pay of 12.07% for holiday pay, rather than calculating and paying holiday pay at the time the worker takes holiday. Again, this applies to workers who meet one of the new definitions and in relation to leave years starting on or after 1 April 2024. Rolled-up holiday pay had previously been declared unlawful by the European courts.


Carry forward of leave due to Coronavirus


The right to carry forward leave where it could not be taken due to coronavirus ended on the 1st of January 2024. Workers must have used up any such leave by 31st March 2024.


Updated HR Policies and Processes

Have you updated your HR polices and practices with forthcoming employment legislation changes?

 

All our HR Hero members benefit from having their HR policies updated every year, as employment law changes. 

 

If you’d like the reassurance that your polices and employment contracts are kept up to date with the latest legislation changes.  Then come and join our membership, from as little as £75 per month (minimum of 12 months).

 

Peace of mind that you have everything you need to comply with employment law, support your people and protect the business.

 

To find out more, click this link: https://www.thehrhero.co.uk/hr-support

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Disclaimer:  Every reasonable effort is made to make the information accurate and

up to date, but no responsibility for its accuracy and correctness or any

the author or publisher assumes the consequences of relying on it.  If you are

unsure about how this information applies to your specific situation, please seek

expert/legal advice.

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