Latest HR Changes – What they mean and what you need to consider
There is an unusual influx of new HR legislation, effective from 06 April 2024. How do they affect your business travel business? Here is a snapshot of what it all means.
- Changes to flexible working requests
When: 6 April 2024
What’s changing?
The Flexible Working (Amendments) Regulations 2023 mean employees will have the right to request flexible working arrangements from day one of employment. The Employment Relations (Flexible Working) Act 2023 will allow employees to make more than one request per year. Employers will have to be quicker in dealing with those requests too.
Breakdown of the new law
- Employees can request flexible working from day one.
- Employers must consult with employees before rejecting requests.
- Employees no longer need to explain what impact, if any, the change will have on the employers or the business.
- Employees can make two flexible working requests in any 12-month period.
- Employers must respond to a request made within two months.
Key impacts for you
As attitudes towards flexible working continue to shift, you must prioritise getting your approach right. With the rise of hybrid working models (and business travel is no exception) and the competitive advantage that flexible working offers, it’s important to take the necessary steps to ensure your policies and practices reflect the changing landscape.
To prepare for this change, you should review your flexible working policies and provide training for managers on how to manage requests. You should also plan communication strategies to inform staff of any changes.
- Changes to paternity leave entitlements
When: 6 April 2024
What’s changing?
Under the Paternity Leave (Amendment) Regulations 2024, the paternity leave system will be more flexible for new fathers and those with responsibility for the upbringing of the child, including civil partners, or partners of the child’s mother.
Key impacts for you
Refusal of eligible employees’ paternity leave is unlawful, so business travel businesses must be prepared to manage instances where new fathers or those who are eligible are off work. You will need to update your current paternity leave policy and ensure that payments are made correctly.
- More protection against redundancy during pregnancy, maternity, adoption, and shared parental leave
When: 6 April 2024
What’s changing?
Under the Protection from Redundancy (Pregnancy and Family Leave) Act 2023, pregnant employees will have the right to be offered a suitable alternative job where one exists, in a redundancy, above all other employees. The new Act will also extend the protection to employees who are on maternity, adoption or shared parental leave.
Key impacts for you
You must make sure that your redundancy procedures provide protection for those on maternity, adoption, or shared parental leave, giving them the right to be offered any suitable alternative job role during the redundancy process. The change means that employees who are pregnant or have recently returned from family-friendly leave are now entitled to an extended redundancy protection period of around two years, up from one year.
So, you will need to consider this extended redundancy protection period, because more employees than before will be given priority
- New carer’s leave entitlement
When: 6 April 2024
What’s changing?
For those who care for people with long-term illness or disability, the Carer’s Leave Act 2023 will provide the right to one week’s unpaid leave per year.
Key impacts for you
You will need to make sure you either update your current time off work policy or create a stand-alone carer’s leave policy to prepare for this new law coming into effect. Once you have done so, remember to inform your employees of the new right and the logistics of requesting and taking it. It’s best practice to have a system of record-keeping to track the number of days taken and you may also want to create a self-certification form for employees to complete to declare they meet the criteria under the Act.
- Changes to holiday calculations
When: For leave years on or after 1 April 2024
What’s changing?
There’s going to be a new method in place to calculate holiday entitlement for irregular hours workers and part-year workers, for leave years starting on or after 1 April 2024. Rolled up holiday pay will be lawful again.
Breakdown of the new law
- The law on working out holiday entitlement and pay for irregular hours workers and part-year staff
will change.
- The new rules only apply from the start of the first new leave year on or after 1 April 2024.
- There are two methods available: the default method or rolled up holiday method.
- If you have a leave year running from January to December, the new rules will apply from
January 2025.
Key impacts for you
Payroll – If you have irregular hours workers’ or part-year staff, from the date the new rules apply to you, holiday will accrue, on the last day of the pay period, at the rate of 12.07% of hours worked in that pay period. You will then be able to choose from the two methods available for their holiday pay: the default method or the rolled up holiday method.
The default method means that when they take their holiday, you will pay them holiday pay based on their average earnings over the previous 52 weeks.
The rolled up holiday pay method means that you will pay the worker an extra 12.07% on top of their usual pay in each pay packet. This will represent their holiday pay and you will not then pay them when they actually take holiday.
If the new rules are different to what you are already doing, this will be a change to your employee’s terms and conditions and their contract of employment. But this will need to be agreed with staff before going ahead.
- Increase to the National Living Wage and statutory payments
When: 1, 6, and 7 April 2024
What’s changing?
As is usual every April, statutory payments will rise, affecting all employers.
Breakdown of the new law
- The threshold for National Living Wage will be lowered to include 21-year-olds.
- The new National Living Wage rate will be £11.44 per hour; £8.60 for those aged 18 – 20; £6.40
for those over school age but not yet 18, and apprentice rate.
- Payments for Statutory Sick Pay will increase from £109.40 to £116.75 per week from 6 April 2024.
- Payments for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay,
Statutory Adoption Pay, and Statutory Bereavement Pay all increase from £172.48 to £184.03 per week from 7 April 2024.
Key impacts for you
The National Living Wage increases previously applied to those 23 years and older, However, these changes mean more of your staff, from the age of 21, will be entitled to the higher pay rate. That means your payroll needs to be updated or you’ll run the risk of breaching minimum wage regulations. Similarly with the increase statutory rates, failure to pay the correct rates could result in hefty fines and tribunal claims, so you’ll need to update your payroll.
So, lots to consider and to action. Not just a recruitment agency – Sirius Talent Solutions also offers project HR consultancy and can provide support to ensure you are compliant with the new legislation. Contact us for a no obligation and informal consultation.
T: 01932 562007