The 2024 Employment Rights Bill proposes important changes that UK employers need to prepare for. While this Bill is not yet law, it is expected to be enacted within the next 12-18 months. We hope you find this guide helpful and that it explains the key updates and what actions you should take now to ensure compliance when the Bill becomes law.
Redundancy Consultations:
One major proposed change is the reduction in the number of employees required to trigger a collective redundancy consultation. If the Employment Rights Bill becomes law, businesses planning to make 10 or more employees redundant within a 90-day period must follow collective consultation procedures.
Key Change:
Currently, this rule only applies to companies planning to make 20 or more employees redundant. The Bill lowers the threshold to 10 employees, meaning smaller redundancy exercises will require formal consultation.
Steps to take:
- Review procedures: Start reviewing your redundancy process now to ensure it complies with the new rules.
- Be transparent: Clearly explain the reasons for redundancies and give employees the chance to suggest alternatives.
Example:
If your company plans to make redundant 12 employees, you will be required to hold formal consultations. Under the current law, this only applies when 20 or more employees are affected.
For detailed redundancy guidelines, visit ACAS - Redundancy Procedures.
Key to know: The 2024 Employment Rights Bill proposes that redundancy consultations will be required for 10 or more employees.
Harassment Protections: Expanded Responsibilities for Employers
The Bill also proposes stronger protections against harassment, including incidents that happen outside the workplace. Employers must handle harassment claims, even if the incident happens off-site.
Example:
Imagine an employee being harassed during a client meeting. Under the new rules, the employer would be responsible for investigating the claim and taking action, even though it happened off-site.
If the same employee was on their own time, for instance they had left a trade show and decided to stop for a meal instead of travelling straight home and was harassed in the restaurant, the issue becomes a more complex and as the employer, you may still have some responsibility under the bill. As details have not been finalized, we suggest having policies that cover these types of incidents.
Action Steps:
- Update your policies now: Ensure your harassment policy covers off-site work situations.
- Train employees and managers: Make sure staff know how to report incidents, whether in the office or off-site.
For more on harassment protections, visit EHRC - Harassment at Work.
Key to know: The 2024 Employment Rights Bill proposes stronger protections against harassment, including off-site work incidents.
Flexible Working Requests from Day One
Under the proposed 2024 Employment Rights Bill, employees will have the right to request flexible working from their first day at work. Currently, this right only applies after 26 weeks of employment. Additionally, the Bill will require employers to respond quicker.
Action Steps:
- Prepare your policies: Ensure that your flexible working policies reflect the proposed changes.
- Document decisions: Keep clear records of all flexible working requests and responses to ensure compliance.
Example:
An employee might request to work remotely two days a week from their first day. Under the new Bill, you must respond to this request faster and provide a business reason if you cannot approve it.
For more on flexible working rights, visit GOV.UK - Flexible Working.
Key to know: The 2024 Employment Rights Bill proposes that employees will be able to request flexible working from day one.
Changes to Holiday Pay and Working Time Regulations
The Bill proposes changes to how holiday pay is calculated, particularly for employees who work irregular hours. If passed, employers must calculate holiday pay based on the employee’s average earnings over a 52-week period.
Action Steps:
- Check your payroll system: Ensure that your system can handle the changes in holiday pay calculations.
- Audit your records: Review how you track hours and overtime to ensure accurate holiday pay calculations.
Example:
If an employee works varying hours each week, you would calculate their holiday pay using their average earnings over the last 52 weeks. This ensures their holiday pay reflects their actual work patterns.
More information on working time rules can be found at .Gov - Working Time Regulations.
Key to know: Holiday pay for employees with irregular hours will be based on their average earnings over the last 52 weeks under the proposed 2024 Employment Rights Bill.
Comparison of Current Rules vs. Proposed Changes Under the 2024 Employment Rights Bill
| Topic | Current Rules | Proposed Changes Under the 2024 Bill |
|---|---|---|
| Redundancy Consultations | Required for 20 or more employees | Required for 10 or more employees |
| Flexible Working Requests | Employees can request after 26 weeks | Employees can request from day one |
| Holiday Pay Calculations | Based on recent earnings (varies) | Calculated over a 52-week reference period |
| Harassment Protections | Workplace incidents primarily | Includes off-site work-related incidents |
This table provides a clear and quick comparison of the current rules and the proposed changes in the 2024 Employment Rights Bill.
FAQs
Q: How does the 2024 Employment Rights Bill affect redundancy consultations?
- The Bill proposes that employers must hold redundancy consultations if they plan to make 10 or more employees redundant within a 90-day period. Currently, this applies to redundancies of 20 or more employees.
Q: When will the 2024 Employment Rights Bill become law?
- The Bill is expected to pass within the next 12-18 months. However, this depends on the legislative process, which involves multiple stages:
- First Reading: Introduction of the Bill.
- Committee Review: Detailed examination and potential amendments.
- Debates and Votes: In both the House of Commons and House of Lords.
- Royal Assent: Final approval before becoming law.
Q: How soon do I need to respond to a flexible working request under the new Bill?
- Employers will need to respond faster than under current rules. Make sure you have a process in place to handle requests efficiently.
Q: What should I do if an employee reports off-site harassment?
- Investigate the claim thoroughly, as you would for an incident that occurs in the office. Make sure your harassment policy covers off-site work situations.
Key Takeaways
- Redundancy Consultations: The Bill proposes that formal consultations will be required for redundancies involving 10 or more employees.
- Harassment Protections: Employers will be responsible for handling harassment claims, even if the incident occurs off-site.
- Flexible Working: Employees will be able to request flexible working from day one, and employers must respond faster.
- Holiday Pay: For employees with irregular hours, holiday pay will be based on their average earnings over the last 52 weeks.
Next Steps for Employers
Although the 2024 Employment Rights Bill is not yet law, it is expected to pass soon. Now is the time to review your policies, audit your payroll systems, and train your staff. This will help ensure your business is ready when the Bill becomes law.
Don’t wait until the Bill is passed — start preparing now. Crystal HR & Payroll Ltd can help you navigate these changes and ensure your business stays compliant with the latest legislation.
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