UK employment law round-up: December 2024

The Employment Rights Bill and plan to Make Work Pay...again... 

The Employment Rights Bill is comprehensive. As the bill aims to tackle no fewer than 28 employment reforms, it is likely that the complexity and detail of the legislation will not ease.  

On top of this, we have now seen the delivery of a sizeable body of amendment papers. The papers propose possible adaptations to the bill, such as the extension of tribunal claims limits from three months to six, or changing the proposed ‘day one right’ to claim unfair dismissal to a right to claim unfair dismissal during an ‘initial period of employment between 3-9 months’ right (meaning that there could be a phasing of the unfair dismissal rules during whichever time period is chosen). 

The amendments process is complex and not all of the proposed items in the paper will make it into the bill. The CIPD will continue to update the tracker with confirmed changes and advice. The CIPD public policy team are continually meeting with government and responding to relevant consultations under the bill, we are sharing these with you here.   

Comments about ‘not understanding accent’ as race harassment 

In Carozzi v University of Hertfordshire (2024) the claimant lodged a series of claims in relation to victimisation and harassment. Of note is one claim relating to harassment: 

• The original tribunal ruled that comments about the claimant's accent were not race-related harassment because they could not be shown to be explicitly linked to the race of the employee.
• However, the EAT overturned this, stating that the explicit link to the protected characteristic is not needed. The EAT indicated that to qualify as harassment, the conduct must be unwanted and related to a relevant protected characteristic. 

CIPD members can access the employment law page on harassment and bullying for more information on this area.  

Major law changes from 2024 and what to expect in 2025 

2024 saw many legal precedents, codes and legislative changes. A full view of what happened is provided in the employment law content and timetable.  

Of the laws that came into effect this year, people professionals saw significant change because of: 

• The Retained EU Law (Revocation and Reform) Act 2023. This applies across the UK, and relaxes the detail of records needed for the purpose of Working Time calculations:
  • permits the practice of rolled-up holiday pay (RHP) for those working irregular hours or part year
  • allows for holiday entitlement accrual and payment method of 12.07% of hours worked for irregular hour and part year workers
  • alters group TUPE consultation arrangements
  • extends permitted circumstances for carryover leave
  • adds a definition to the ‘normal’ pay rate for the calculation of the first four weeks of statutory leave.
• The Paternity Leave (Amendment) Regulations 2024  apply in Great Britain. The regulations allow fathers to take their paternity leave as two separate one-week blocks within the first year, and further, shortened the notification requirements for such leave.
• The Carer’s Leave Act 2023  also applies across England, Scotland and Wales. The act allows for unpaid carers to take up to five days of unpaid leave every 12 months. The leave is permitted in order to fulfill caring responsibilities. The act also protects those taking this leave from detrimental treatment as a result of the leave periods.  People professionals may also note that the government intend to review carer’s leave to " ensure that we are making the necessary difference to carers and their dependents”.
• The Protection from Redundancy (Pregnancy and Family Leave) Act 2023  allows for employees in Great Britain to gain increased protection in redundancy situations for periods of pregnancy and parental leave. Pregnant women gained two weeks of additional protection following the loss of a baby to miscarriage, then further protection of up to 18 months for those on maternity, adoption or shared parental leave (the protection period is dependent on the period of leave taken).
• The Employment Relations (Flexible Working) Act 2023  allows those in Great Britain to make flexible working requests from day one of employment – rather than following the previous 26-week qualification period. The act also allows employees to make two requests in a 12-month period and to be protected from detriment for making such a request.  

April 2025 will be an active month for legislative change. The annual uplift in Statutory Sick Pay and increased rate for the secondary Class 1 National Insurance contributions (13.8% to 15%) will come into effect from 6 April. This is in addition to the annual National Minimum Wage increases. For employers, there are some relief options, with the maximum rate of the Employment Allowance increasing from £5000 to £10,500, and the relaxation of the eligibility criteria to claim the Allowance. 

We will bring you legislative updates throughout 2025. CIPD members can use the tracker and employment law timetable to stay up to date with the latest developments.