This article introduces the changes to employment regulations in the UK that took effect on April 1, 2024. It covers the increase in the National Minimum Wage, adjustments to annual leave calculations, changes in statutory redundancy payments, and other significant shifts in employment law. These updates aim to provide a clearer understanding of how these changes impact employers and UK employees.
National Minimum wage rises – 1 April 2024
The increase in the National Living Wage from £10.42 to £11.44 marks a significant step towards ensuring fair compensation for workers across the United Kingdom. This adjustment, effective for pay reference periods starting on or after 1st April 2024, underscores the government’s commitment to supporting the financial well-being of individuals in the workforce.
Extending this wage increase to workers aged 21 and over demonstrates a recognition of the value and contribution of individuals at various stages of their careers. By including younger workers in this initiative, the government aims to promote inclusivity and address the needs of a diverse workforce.
This rise in the National Living Wage not only provides immediate relief to workers facing rising living costs but also contributes to broader economic goals. By putting more money in workers’ pockets, there is a potential for increased consumer spending, which can stimulate economic growth and support businesses
| NMW rate from 1 April 2024 | Increase in pence | Percentage increase |
|---|---|---|
| National Living Wage (21 and over) | £ 11.44 | £ 1.02 |
| 18-20 Year Old Rate | £ 8.60 | £ 1.11 |
| 16-17 Year Old Rate | £ 6.40 | £ 1.12 |
| Apprentice Rate | £ 6.40 | £ 1.12 |
Holiday entitlement and holiday pay for part year and irregular hours workers – 1 April 2024
Workers have the statutory right to a minimum of 5.6 weeks paid annual leave under the Working Time Regulations 1988 (WTR 1988). This equates to 28 days for a full-time worker, working 5 days per week.
However, under the new rules introduced into the WTR 1998 on 1 January 2024, part-year and irregular workers accrue in hours proportionate to the hours worked, as opposed to weeks. This will apply to holiday years starting on or after 1 April 2024.
If you have a holiday year running from e.g. January to December, the rules do not apply until 1 January 2025.
Statutory redundancy payments – 6 April 2024
You have the right to a statutory redundancy payment if you are an employee who has worked continuously for your employer for at least two years and you are being made redundant. Statutory redundancy pay is calculated using your age, service length and weekly pay. Your age matters at the calculation as it affects how much your redundancy pay will be. Age brackets are:
- 21 and under – 0.5 week’s pay for each full year of service
- 22 to 40 – one week’s pay for each full year of service
- 41 and above – 1.5 week’s pay for each full year of service
It’s important to note that the maximum weekly pay, which is a key factor in calculating your statutory redundancy payment, has increased to £700 from its previous value of £643.00. This change applies to redundancy dismissals on or after 6 April 2024.
Flexible Working – 6 April 2024
Changes include:
- A day one right (previously had to have a minimum of 26 weeks service)
- Employees now have the right to make up to 2 requests in a 12 month period (previously one)
- The employee no longer needs to explain what affect, if any, their request would have on the business.
- Employers have to deal with the requests within 2 months (previously 3)
- Employers are obliged to consult, prior to rejecting a request.
Paternity Leave – 8 April 2024
- Employees can split their leave into blocks of two separate weeks (previously this had to be in one block)
- Paternity leave can now be taken within the first 52 weeks of birth (previously within the first 8 weeks)
- Employees must notify their employer of their intention to take leave, in writing, and by no later than 15 weeks before the expected week of childbirth, with a written declaration that they meet the eligibility requirements to take the leave.
- Employees must provide at least 28 days written notice as to the dates of leave and must set out the start date of leave, the duration of leave and that the purpose of the leave will be to care for the child or to support the child’s mother or adopter.
- Dates can be changed by providing a further 28 days written notice.