Littler Global Guide - United Kingdom - Q2 2024

Littler Global Guide - United Kingdom - Q2 2024


New Legislation Approved During Parliamentary “Wash Up”

New Legislation Enacted

By Deborah Margolis and Hannah Drury

In the wake of the UK general election announcement, Parliament approved several significant pieces of legislation during the expedited “wash-up” period in late May 2024. These laws, pending further regulations and influenced by election results, include:

  • Paternity Leave (Bereavement) Act 2024, which removes the 26-week service requirement for paternity leave upon the death of a child’s mother, adoptive parent, or intended parent in surrogacy.
  • The Statutory Code of Practice on the fair and transparent distribution of tips: The approved draft Code of Practice supports the Employment (Allocation of Tips) Act 2023, which will create a legal obligation for employers to allocate qualifying tips, gratuity and service charges fairly between workers and any eligible agency workers. The Code will provide employers with overarching principles to help them determine what is fair for the purposes of the Act, including providing guidance on the types of tips covered, and providing a list of non-exhaustive factors that employers should consider to allocate tips fairly. It is expected that the Code will come into force on October 1, 2024, depending on the election results.
  • The Code of Practice (Dismissal and Re-engagement) Order 2024, effective July 18, 2024, mandates employer 
    consultation prior to employment terms changes, with a potential 25% compensation adjustment order 
    contingent on election results.
  • The Retained EU Law (Revocation and Reform) Act 2023 Regulations will reframe how EU laws are applied 
    post-Brexit, introducing new departure tests and referral procedures for appeal courts, effective October 1, 2024.

Each piece of legislation’s commencement hinges on the forthcoming general election results.

New Rules Expand Right to Request Flexible Working 

New Legislation Enacted

By Ben Smith 

As of April 6, 2024, a number of largely procedural changes to the UK’s flexible working request regime have been in place, expanding the right to request flexible working. The changes include:

  • Employees have the right to make a flexible working request from day one of employment (formerly, there was a 26 weeks’ service requirement)
  • Employees can now make two flexible working requests in any rolling 12-month period (increased from one)
  • Employees no longer need to explain what potential impacts their flexible working would have on the business or suggest ways to avoid those impacts
  • Employers must respond to flexible working requests more quickly, having two months to respond to the request (reduced from three months), unless an extension is agreed upon with the employee
  • Employers must consult with employees about the flexible working request before refusing the request, with a new code of practice from the Advisory, Conciliation and Arbitration Service (Acas) setting out best practice for consultation

See The Employment Relations (Flexible Working) Act 2023 (Commencement) Regulations 2024 and Employment Relations (Flexible Working) Act 2023. 

Victims and Prisoners Act 2024 Non-Disclosure Agreements

New Legislation Enacted

By Laura Lobb

There has been increased regulatory and political scrutiny of the use of non-disclosure agreements (“NDAs”) in particular in relation to allegations of sexual misconduct, harassment or discrimination. To address this issue, the Ministry of Justice announced earlier this year that legislation would be introduced. Section 17 of The Victims and Prisoners Act 2024, which was enacted on May 24, 2024, will make any contractual provision void if it seeks to prevent the disclosure of information concerning criminal conduct by a “victim,” or a person who reasonably believes they are a victim, to certain categories of persons. These categories include: law enforcement; qualified lawyers, regulated professional advisers, regulators; or certain close family members. 

The definition of “victim” is narrow, and the legislation only seeks to protect permitted disclosures by individuals who have suffered harm as a direct result of being subjected to criminal conduct or related situations, so they can report, or seek support as a result of, criminal conduct. The legislation does not apply if the disclosure by the victim is made simply to release information into the public domain.

No date has been given for when this law will come into force, but businesses should be aware of the Act and ensure that any NDA used is compliant with it.