As 2024 progresses, legislative updates are reshaping the employment landscape. From enhanced protections in insolvency situations to updates in pension auto-enrolment and gender pay gap reporting, employers need to stay informed and compliant.
This post highlights the key legislative changes introduced over the summer of 2024 that affect employers across the UK, offering actionable advice on adapting to these new requirements.
Enhanced Protection for Employees in Insolvency Situations
One of the most notable updates is enhancing employee protection in insolvency cases. Under the revised regulations, employees now have greater security in the event of employer insolvency, ensuring quicker access to unpaid wages, redundancy pay, and other entitlements. These updates are particularly relevant to sectors with higher volatility, such as hospitality and retail, where insolvency risks are often heightened.
For employers, it’s crucial to understand these changes to minimize disruption and ensure that employees receive the financial support they are entitled to during such difficult circumstances. Employers should work closely with legal and financial advisors to review their business continuity plans and ensure compliance with the new rules. The Insolvency Service provides further guidance on these updates.
Employment Permits and Immigration Changes
Summer 2024 also saw essential updates to employment permits and immigration policies, particularly regarding workers from the EU and beyond. With Brexit continuing to impact workforce availability, the UK government introduced new provisions to streamline visa applications for skilled workers, making it easier for employers to hire internationally. This includes updated criteria for sponsoring workers and changes to visa eligibility for specific industries experiencing labour shortages.
If your business hires international workers, now is the time to review your employment practices to ensure compliance with updated visa regulations. For more information on the changes and how they may affect your workforce, consult the UK Visas and Immigration (UKVI) website.
Pensions Auto-Enrolment Changes
Pension auto-enrolment has been a critical topic in 2024, with the government introducing new measures to increase minimum contributions. Starting in July, all businesses must adhere to a higher threshold for employer and employee contributions to encourage long-term savings among the UK workforce. This change is part of a broader effort to improve employee retirement outcomes across all sectors.
For employers, this means reviewing your pension scheme contributions and ensuring that payroll systems are updated to reflect the new requirements. It’s also important to communicate these changes to your employees, ensuring they understand how their pension savings will be affected. The Pensions Regulator provides a detailed breakdown of these changes.
Gender Pay Gap Reporting
Gender pay gap reporting remains a focal point for employment law, and in Summer 2024, the UK government introduced stricter reporting requirements for large employers. These new rules require companies with over 250 employees to publish more detailed reports on gender pay gaps, including steps they are taking to reduce disparities. Additionally, the framework for reporting has been expanded to cover ethnicity and disability pay gaps for the first time under the Draft Equality (Race and Disability) Bill proposed earlier this year.
For businesses, gender pay gap reporting is not just a compliance issue but a critical reputational factor. Employers are encouraged to meet the reporting requirements and implement proactive strategies for reducing pay inequalities. For guidance on how to address and report on gender pay gaps, visit the Government Equalities Office.
Parents’ Leave
Lastly, there have been notable changes to parental leave entitlements. The updated provisions extend eligibility for shared and unpaid parental leave, offering greater flexibility for working parents. These changes are designed to improve work-life balance for parents and carers, particularly in industries with high demands on employee time, such as healthcare and education.
Employers should update their HR policies to reflect these changes, ensuring employees know their new rights and options. Effective communication is vital, so consider hosting workshops or providing informational sessions to explain these updates in detail. The Advisory, Conciliation and Arbitration Service (ACAS) offers helpful resources on parental leave entitlements.
AEL's perspective
At Arthur Employment Law, we believe understanding and adapting to these legislative changes is essential for maintaining a healthy, compliant, and productive workplace. Employers proactively embracing these updates can ensure smoother operations while supporting their employees’ rights and well-being.
Whether you’re dealing with new insolvency protections, updating your auto-enrolment schemes, or addressing gender pay gaps, Arthur Employment Law is here to guide you through these transitions with practical advice tailored to your business needs.
For more information on any legislative changes mentioned, contact us directly, or explore the links provided throughout this post for detailed resources and further reading.
