Employment Law Digest January 2025 – 2024 Employment Law Roundup

2024 was an eventful year and the world of employment law was no exception. As the new Government continues to make its mark, 2025 is shaping up to be just as busy. Before we consider what 2025 may have in store, we first reflect on some of the key employment law updates from 2024.

Flexible Working

In 2024, the right to request flexible working became a ‘day 1 right’, meaning that employees no longer need to reach 26 weeks’ service before submitting a request. Employees are now also entitled to submit two requests in any 12-month period, rather than one. The rules for employers, however, have tightened and a new statutory Code of Practice has been published. New consulting obligations have been imposed meaning that employers cannot refuse a request unless the employee has been consulted. The decision-making period has also decreased from three months, to two. Whilst, on the face of it, the measures might seem incidental, it is important that employers do not fall foul of these new procedural hurdles.

Family Friendly Rights

Family friendly rights also remained high on the agenda. The Carer’s Leave Act 2023, which came into force in April 2024, allows employees to take one week’s unpaid leave, per year, to provide or arrange care for dependants with long-term care needs. New paternity leave regulations also came into force, allowing fathers and partners more flexibility in terms of when and how they take their leave, and the notice they are required to provide.

Whilst not yet in force, the Paternity Leave (Bereavement) Act 2024 received Royal Assent in May 2024. The Act will give bereaved fathers and partners new rights in circumstances when a child’s mother dies. Whilst additional regulations are required to flesh out the legislation, it is expected that paternity leave for bereaved partners will be increased. In recent years, family friendly rights have continued to strengthen and evolve, and we expect that this is only set to continue.

Sexual Harassment

In October 2024, the new duty requiring employers to take ‘reasonable steps’ to prevent sexual harassment, came into force. Employers are now required to take steps to prevent sexual harassment, including in relation to third parties, and a failure to comply with this duty could result in a 25% uplift in compensation. The Equality and Human Rights Commission (EHRC) were also given new powers to investigate and take enforcement action against employers acting in breach of their obligations.

The EHRC also published an 8-step guide outlining the steps employers can take to prevent sexual harassment in the workplace, including developing effective policies and conducting risk assessments. Whilst many employers have now taken steps to comply with their new obligations, it is an important reminder that employers must continue to regularly evaluate and monitor the effectiveness of their procedures.

The Employment Rights Bill

The highly anticipated Employment Rights Bill dropped in October 2024. With no less than 158 pages of employment law updates to digest, it is safe to say that the Bill did not make for light reading.

The Bill introduced a number of significant and wide-reaching changes, all of which will need to be consulted on and approved in the coming months, if not years. Some of the notable highlights include:

• Removing the two-year qualifying service requirement for ordinary unfair dismissal claims (subject to new rules regarding probationary periods).
• Introducing family friendly ‘day 1’ rights including paternity leave and parental leave.
• Bolstering the right to request flexible working by imposing a reasonableness test and requiring employers to explain any refusals.
• Amending the new preventative duty to require employers to take all reasonable steps to prevent sexual harassment, including third-party sexual harassment.
• Abolishing ‘fire and re-hire’ strategies, except in very limited circumstances.
• Repealing the Strikes (Minimum Service Levels) Act 2023, a controversial piece of legislation which introduced new powers to set ‘minimum service levels’ during strikes.

Amongst other changes regarding zero-hours contracts, whistleblowing, sick pay and redundancy consultation, to name but a few.

We have already seen several amendments to the Bill since it was published, and the scope of the Bill is likely to continue to develop as it makes its way through Parliament.

Civil Penalties

Right to work checks were also given a shakeup. In early 2024, the Home Office increased the civil penalty for employers found to be employing illegal workers, three-fold. The civil penalties now stand at £45,000 (up from £15,000) for a first breach and £60,000 (up from £20,000) for repeat breaches.

The penalties are eyewatering and with enforcement activity increasing at a steady pace, it has never been more important for employers to review their right to work procedures and carry out an internal audit.

Skilled Worker Visas

The rules regarding Skilled Worker visas were also given an overhaul. In April 2024, significant and wide-reaching changes were introduced, impacting both employees and employers. The minimum annual salary increased from £26,200 to £38,700, an increase of more than 40%. Whilst certain protections were carved out for individuals already holding a Skilled Worker visa, and for those working in specific roles in health and education, for the vast majority, the changes represented a significant shift.

The ‘Shortage Occupation List’, a list of in-demand roles which benefitted from a reduced minimum salary, was also scrapped and replaced with the Immigration Salary List (ISL). Whilst roles on the ISL can still benefit from a reduced salary, the number of roles that feature on the list has reduced significantly. Separate changes were also made to the rules regarding dependant visas, with most care workers no longer able to sponsor dependants under the new rules.

Immigration policy remains a divisive and politically charged topic and in keeping with the Government’s objective of reducing net migration, it is likely that the immigration landscape will continue to evolve.