It seems like just yesterday we were mapping out the anticipated changes for 2024. As with all plans, some have shifted or faced delays. Moreover, the looming possibility of an election and potential shift in government adds another layer of uncertainty.
Considering these dynamics, we're revisiting our summary to capture the unexpected developments since our last update and those anticipated for the rest of 2024 and early 2025.
“Fire and Rehire” Code of Practice
Where: England, Wales, Scotland
When: Code published in February 2024 but expected to take effect July 2024
Details: There are times when some employers will seek to impose a change in terms and conditions by terminating a contract of employment at the same time as offering a new one with less favourable terms. A new statutory Code of Practice on Dismissal and Re-engagement has been published in an attempt to address this issue by requiring employers to contact ACAS before raising a potential fire and rehire situation with staff, consulting meaningfully with employees (with a view to trying to reach agreement on proposed changes), not use threats of dismissal to coerce agreement, and encouraging employers to only use this approach as a very last resort.
Where employees make a successful claim in a fire and re-hire situation (e.g. for unfair dismissal or discrimination), Tribunals will have the ability to increase compensation by up to 25% if an employer has unreasonably failed to comply with the Code.
Allocation of Tips
Where: England, Wales, Scotland
When: 1 October 2024 (instead of 1 July 2024)
Details: Requirement for tips/service charges to be fairly distributed and for employers to pass on 100% of tips instead of withholding proportions of these from staff. Employers will need to set out their approach within a written policy and maintain a record of how tips have been allocated and distributed to staff.
Predictable Terms and Conditions
Where: UK
When: Likely to be September 2024 (actual date still not confirmed)
Details: New right for atypical workers, including casual, zero hours, bank, fixed term contracts, and agency workers, to request a more predictable working pattern. This new change is to be managed similarly to arrangements for flexible working requests, but employers must respond within 1 month.
Domestic Abuse (Safe Leave)
Where: Northern Ireland (NI)
When: Implementation date not yet known
Details: Proposed new day one right for 10 days paid leave in each leave year for the purpose of dealing with issues related to domestic abuse.
Prevention of Fraud
Where: UK
When: 2024 - Implementation date not yet known
Details: New duty on large organisations to prevent fraud. A failure to prevent fraud will be classed as a criminal offence for organisations that profit from fraud committed by their employees.
Non-Compete Clauses
Where: UK
When: 2024 - Implementation date not yet known
Details: Government intention to limit the duration of non-compete clauses to a maximum of 3 months in employee and worker contracts. This cap will not apply to other restrictive covenants.
Pension Auto-enrolment Changes
Where: UK
When: 2024 - Implementation date not yet known
Details: The age threshold will be lowered from 22 to 18 and contributions from the first £1 of earnings.
Neonatal Care and Leave and Pay
Where: England, Wales and Scotland
When: Expected April 2025
Details: Providing employees with a new day one right to up to 12 weeks’ leave if their baby is in hospital for 7 days or more within 28 days of its life. There will be an entitlement to Statutory Neonatal pay if the employee has 26 weeks of service and earns above the lower earnings limit (i.e. at least £123 per week).
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