Over the next few years, significant employment legislation will come into effect, impacting various aspects of the workplace. Employers must stay informed about these changes to ensure compliance and adapt their policies accordingly. Below is an overview of the upcoming employment legislation, their commencement dates, and what they mean for employers and employees.
Legislation by Commencement Date
1 October 2024 – Employment (Allocation of Tips) Act 2023
From 1st October 2024, the Employment (Allocation of Tips) Act 2023 will require employers to pass on all tips, gratuities, and service charges paid by customers to workers in full, without any deductions. This upcoming employment legislation is designed to ensure that workers receive the entirety of what they earn in tips.
Employers who distribute tips more than occasionally must establish a written policy outlining how these tips are allocated. A Code of Practice will be published in due course after which, the legislation will come into force.
26 October 2024 – Worker Protection (Amendment of Equality Act 2010) Act 2023
Effective from 26th October 2024, the Worker Protection (Amendment of Equality Act 2010) Act 2023 will place greater responsibility on employers to prevent sexual harassment in the workplace. The Act mandates that employers take ‘reasonable steps’ to prevent sexual harassment during employment.
Additionally, compensation for harassment claims can be increased by up to 25% if an employer is found to have failed in their duty to prevent such behaviour. Employers should review and strengthen their harassment prevention policies and training programmes to meet these new requirements.
1 July 2026 – The Drivers’ Hours, Tachographs, International Road Haulage and Licensing of Operators (Amendment) Regulations 2022
On 1st July 2026, new regulations will take effect under the Drivers’ Hours, Tachographs, International Road Haulage and Licensing of Operators (Amendment) Regulations 2022. These regulations are intended to fully implement international road transport provisions as agreed in the Trade and Cooperation Agreement (TCA) between the EU and the UK.
The regulations include updated rules on drivers’ hours and mandatory use of tachograph equipment in goods vehicles. The scope will expand to include some light goods vehicles, and new tachograph technology will be introduced. Additionally, the regulations will adjust market access for EU operators, aligning with the TCA.
2028 – Pension Age Increase
In 2028, the normal minimum pension age will rise to 57 years, following an amendment to Part 4 of the Finance Act 2004. This change will affect when individuals can access their pension benefits, so employers should prepare to communicate these changes to employees, especially those approaching retirement age.
Legislation Awaiting Commencement Dates
Several important pieces of upcoming employment legislation are expected to come into force soon, although their exact commencement dates are yet to be confirmed.
Expected in 2024
- The Workers (Predictable Terms and Conditions) Act 2023: Anticipated around September/October 2024, this Act will give workers and agency workers a new statutory right to request more predictable terms and conditions of work. Workers can request changes if their work pattern lacks predictability, with the aim of securing a more stable work schedule. Eligible workers must have been employed by the same employer within the month preceding a defined period, likely to be 26 weeks. Workers can make two applications within a 12-month period, including flexible working requests for more predictable contracts.
- Employment Tribunal and EAT Fees: Expected in November 2024, the Government plans to introduce a claim issue fee in Employment Tribunals (ET) and an appeal fee in the Employment Appeal Tribunal (EAT). The proposed fee is £55 per claim, and a remission scheme will be available for eligible claimants to alleviate financial hardship.
- The Strikes (Minimum Service Levels) Act 2023: This Act, which received Royal Assent in July 2023, will enforce minimum service levels in critical sectors such as health, fire and rescue, education, transport, and border security. The Act is expected to come into force imminently, following the Government’s consultation on the draft Code of Practice.
- The Rehabilitation of Offenders Act 1974 (Exceptions) (Amendment) (England and Wales) Order 2023: When in force, this legislation will allow questions about spent cautions and convictions in specific professions, such as chartered management accountants, fire and rescue employees, and notaries public, where necessary to assess suitability for work.
- The Seafarers’ Wages Act 2023: This Act aims to protect workers on ships operating regular international routes to/from the UK, ensuring they are paid at least the national minimum/living wage.
- Pensions (Extension of Automatic Enrolment) Act 2023: This legislation will lower the minimum age for automatic enrolment into workplace pensions from 22 to 18 years.
Expected in 2025
- Neonatal Care (Leave and Pay) Act 2023: This upcoming legislation will entitle employees to take leave when their baby requires neonatal care. The Act covers medical and palliative care needs for newborns, providing statutory leave for eligible employees.
Conclusion
These upcoming legislative changes represent significant shifts in employment law, with wide-ranging implications for both employers and employees. It is essential for businesses to stay informed and prepare for these changes, ensuring they have the necessary policies and procedures in place to comply with the new regulations as they come into effect.
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