April 2024 is set to mark a significant shift in Employment Law, especially concerning statutory rates of pay.
The Government has announced the largest ever increase to the National Minimum Wage (NMW) and National Living Wage (NLW), alongside some important changes that could affect many employees and employers across the UK.
Changes to Statutory Rates of Pay
National Living Wage (NLW) and National Minimum Wage (NMW)
The NMW band previously set for 21 and 22 year olds has been abolished. This means workers aged 21 and 22 will now be eligible for the NLW, ensuring a higher pay rate for more workers.
Additionally, the exception for domestic workers (those living and working in their employer’s home) will be discontinued which may also mean a significant wage increase for some employees.
These changes highlight the importance of reviewing your team’s hourly rates of pay, especially for those in the 21 or 22 age bracket. It’s crucial to identify who these changes apply to and make any necessary adjustments to their pay.
Statutory Sick Pay
Another key update is the increase in Statutory Sick Pay, effective from 10 April 2024. Eligible employees will see a rise from £109.40 to £116.75 a week, providing extra support to those unable to work due to illness.
Breakdown of the New Rates
Here’s a clear and simple breakdown of the changes:
| Category | Current Rate | Rate from 1 April 2024 | Increase | % Increase |
|---|---|---|---|---|
| NLW (21 years and over) | £10.42 (age 23+) £10.18 (age 21-22) | £11.44 | £1.02 | 9.8% |
| NMW (18-20 years old) | £7.49 | £8.60 | £1.11 | 14.8% |
| NMW (16-17 years old) | £5.28 | £6.40 | £1.12 | 21.2% |
| Apprentice | £5.28 | £6.40 | £1.12 | 21.2% |
| Statutory Sick Pay | £109.40 / week | £116.75 / week | – | – |
Family Leave Rates
Changes to the rates for statutory family leave are to take effect on 7 April 2024.
- Statutory Maternity and Adoption Pay: The initial 6 weeks at 90% of average weekly earnings, with the following 33 weeks at £184.03 or 90%, whichever is lower.
- Statutory Paternity Pay, Shared Parental Pay, and Parental Bereavement Pay: Set at £184.03 weekly or 90% of average weekly earnings, whichever is lower.
- Employer Recovery Rates: Regular employers can reclaim 92% of these payments. Small employers, with a Class 1 National Insurance bill of £45,000 or less, can reclaim 100%, plus an extra 3%.
Flexible Working Requests
- Right to request flexible working from day one of employment.
- No need to justify the impact of the request.
- Two requests allowed within a 12-month period.
- Mandatory consultation required before refusal, aiming for a faster, two-month decision process.
Updates to Paternity Leave
- Options for paternity leave include 1 week, 2 consecutive weeks, or 2 separate weeks.
- Extended leave period within 52 weeks of birth or placement.
- Required notice periods adjusted for greater flexibility.
Introduction of Carer’s Leave
From April 6, employees with caring responsibilities can take up to 1-week of unpaid leave annually, available from the first day of employment. This leave supports those caring for dependents with long-term care needs, promoting self-certification to streamline the process.
Enhanced Protection from Redundancy
Starting April 2024, enhanced protections for pregnant employees and those returning from maternity, shared parental, or adoption leave extend to 6 months post-return.
This includes those who have experienced a miscarriage, with protections lasting up to 2 weeks after pregnancy ends before 24 weeks.
Changes to Annual Leave
- Employers are able to round annual leave either up or down to the nearest whole hour.
- Reintroduction of rolled up holiday pay for irregular and part-time workers.
- Adjustments in annual leave accrual and pay calculations.
- Mandated carry-forward of up to 28 days of untaken leave under specific conditions.
How Blue Spire Can Help
Whether it’s ensuring your business complies with the new updates to Employment Law, adjusting payroll accordingly, or simply needing advice on how these changes impact your team, we’re here to help.
Our experienced team can walk you through these changes, offering step-by-step guidance tailored to your specific needs.
| If you have any questions about the Employment Law updates and how they affect your business, please don’t hesitate to get in touch with our friendly team today. |
