In this episode, we focus on the United Kingdom, where Global Chair of Employment and Labor, Purvis Ghani, speaks with the Head of the UK Employment team, Alison Weatherhead, to review key employment developments in the UK during 2023.

Our top five developments so far this year are:

1. Supreme Court rules in historic holiday pay claim

The Supreme Court has ruled that police officers and civilian employees in Northern Ireland can pursue their claims for unpaid holiday pay dating back to 1998. Employers can no longer use the "three-month gap" rule to defend historic claims of underpayment. Instead, claims can be brought for historic deductions, regardless of how far apart they are, or whether correct payments have been made in between, so long as they share the same "common vice".

In Great Britain, there remains a two-year limit on unlawful deduction claims (this backstop was introduced by legislation that does not apply in Northern Ireland). However, the removal of the three-month rule increases exposure for that period.

Action point for employers – Employers should be aware that employees can bring claims for historic underpayments with greater ease and may wish to conduct holiday pay audits if appropriate (see also below).

2. Changes to holiday rules, working time record-keeping and the transfer of undertakings

The government has confirmed several changes to employment law, including:

• new rules for the accrual of holiday and optional rolled-up holiday pay for part-year and irregular hours workers;
• codification of "normal pay" for holiday pay calculations;
• amendments to working time record-keeping requirements; and
• amended TUPE (transfer of undertakings) consultation requirements, permitting direct employee consultation for: (i) organisations with fewer than 50 employees; or (ii) any size business, where fewer than 10 employees are being transferred.

These regulations are due to come into force on 1 January 2024. However, employers will have a little more time to adapt. The changes to holiday rules will apply to holiday leave years starting on or after 1 April 2024 and the TUPE changes will apply to transfers from 1 July 2024.

Action point for employers – The upcoming holiday rule changes have been described as the most significant since the Working Time Regulations 1998. We would advise that employers, especially those with part-year or irregular hours workers or those with variable remuneration, start preparations as early as possible and conduct audits of existing arrangements.

3. Family-friendly rights

A number of new pieces of legislation have been enacted providing for, variously:

• neonatal care leave (expected to be brought fully into force by April 2025);
• the extension of redundancy protection during pregnancy and after maternity, adoption or shared parental leave has ended (due to take effect on 6 April 2024); and
• unpaid leave to care for a dependant with a long-term care need (due to take effect on 6 April 2024).

Action point for employers – Employers should review their policies and procedures in good time in advance of the implementation of these new rights.

4. Employment terms and working patterns 

Two new pieces of legislation will:

• give workers the right to request a predictable work pattern; and
• amend the existing flexible working request regime. 

These changes are expected to come into force in September 2024 and April 2024, respectively.

Action point for employers – Employers should ensure they are prepared to handle requests for predictable and flexible working patterns in accordance with the new legislation, creating and updating policies as applicable.

5. Manifestation of belief 

A recent ruling provides guidance for employers on balancing employees' rights to express their beliefs with maintaining a harmonious work environment. The case involved a teacher who was dismissed for Facebook posts expressing views on same-sex relationships and gender fluidity, leading to a claim for religious discrimination and harassment. 

The Employment Appeal Tribunal upheld the teacher's appeal, emphasising that employers may take action if beliefs create a hostile environment but must balance this with the right to express beliefs (even those which may be considered distasteful), requiring clear policies, open dialogue, and fostering understanding and empathy.

Action point for employers – We recommend that employers review their social media, equal opportunities, harassment and discrimination policies to ensure that these are comprehensive and adequately address potential conflicts. 

For further information regarding any of the noteworthy employment law updates covered in this episode of our series, please contact any member of our Dentons United Kingdom Employment and Labor group.