Legal Changes in January 2024

With the arrival of the new year, you should be aware of the latest legal updates, and how these may affect your business.

Starting from 1st January 2024, the emergency rules for Covid holiday carry-over will end. This means that workers can no longer carry over any leave that they could not take because of the effects of Covid-19. Previously, workers were allowed to carry over 4 weeks of leave into the next 2 years. Any "Covid carry-over leave" must be taken by 31st March 2024.

There will continue to be a right to carry over leave where a worker is unable to take leave due to maternity or family-friendly leave. Also, when a worker cannot take holiday due to sickness, there is still a right to carry over 4 weeks of leave for 18 months after the end of the leave year in which it was accrued.

Legislation has been updated on 1st January 2024 to say that from 1st April 2024, holiday can be pro-rated for part-year or irregular-hour workers. If an employer chooses to do this, they will legally be able to give the workers "rolled-up" holiday pay, meaning that holiday pay can be spread over the year by adding an amount on top of a worker's hourly rate. Please note that this only applies to these specific kinds of workers.

Finally, from the 16th January 2024, the fine for hiring foreign working unlawfully will rise from £45,000.00 per worker for the first breach. After multiple breaches, the fine rises to £60,000.00 per employee.