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New employment rights, minimum wage and more in draft legislation 2024

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New employment rights, minimum wage and more in draft legislation 2024

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 is a draft piece of legislation that was announced in November 2023, and proposes changes to employment rights, wages and more.

In addition, we heard from the Low Pay Commission recently; where they’ve announced their recommendations for the National Minimum & Living Wage.

In this article, Employment Associate Chris Dobbs outlines what exactly is being proposed and how it will effect employers if it becomes law. The proposed changes are as follows:

What is the National Living Wage in 2024?

The Low Pay Commission pay recommendations for 1st April 2024 are as follows:

  • Workers aged 21 or over - £11.44
  • Workers aged 18-20 - £8.60
  • Workers under 18 - £6.40
  • Apprentice rate - £6.40

“These are significant percentage increases on the 2023 figures so employers with staff on or around minimum wage should take careful note.” said Chris Dobbs.

“In particular, the top bracket has reduced for the first time to include those aged 21 and 22. Don't get caught out here.”

Now onto the changes proposed in the mouthful that is the “Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023”…

Revert back to 12.07% Holiday calculations for part-year and irregular hours

(This will include rolled up holiday)

This will, for those who engage staff on either part-year, seasonal or very irregular hours, make life a lot easier.

Rolled up holiday is where holiday pay for part-year, seasonal or irregular hours individuals is incorporated into their salary payment.

It has been technically unlawful for a long time yet companies still do it. UK courts have always been reluctant to do more than make a declaration around these claims having taken the view that a worker gets leave and pay so there is rarely any tangible loss.

Related: Are part-year workers entitled to holiday pay?

Reinforcing aspects of EU law to allow carry over of:

  • All statutory leave missed due to family leave
  • Regulation 13 leave (4 weeks) missed due to illness
  • Regulation 13 leave where no opportunity to take it

Define ‘normal remuneration’ to include regular overtime

We are expecting a clearer definition of ‘normal remuneration’; the calculation of a week's pay for Holiday entitlement, and this new statutory definition hopefully is going to clear this up and tell us that it includes regular overtime, regular commissions etc. This should clarify the disputes about the difference between ‘basic’ and ‘normal’ pay.

Where we calculate ‘normal remuneration’ at the moment it is a 52-week reference period after being increased from 12 weeks a couple of years back.

When are these changes coming into force?

The proposed date is 1st January 2024. Whether this will be the date or not, and whether there will be further changes to the draft before then, is yet to be seen.

As always, we will keep you updated and the best way to stay informed is to sign up to our email list where we will send you any timely updates.

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