United Kingdom: Employee-friendly legislation receives Royal Assent

In brief

Two new employment rights first proposed in 2017 have now received Royal Assent, but it is not yet known when they will come into force. A new right to request a predictable work pattern is expected to come into force in approximately 12 months, while the implementation date of changes reducing the lower age limit for pensions auto-enrolment from 22 to 18 years old and to collect contributions on all qualifying earnings is unknown. 


Contents

Key takeaways

  • The Workers (Predictable Terms and Conditions) Act will amend the Employment Rights Act 1996 to give workers and agency workers a right to request a predictable work pattern where their current work pattern lacks predictability.
  • Contracts that lack predictability include any fixed-term contract of up to 12 months. It is expected that individuals will need at least 26 weeks service to make an application. 
  • The new process is modeled on the right to request flexible working and will allow two applications in any rolling 12-month period. Employers can reject requests on certain statutory grounds.
  • Acas is due to consult on a code of practice before the end of 2023, and it is expected that the new right will come into force in 2024.
  • Pensions legislation changes allow the government to issue regulations to reduce the age limit at which workers must be automatically enrolled into a pension scheme by their employers to 18 years (currently 22). 
  • By further regulations, the government may also reduce or repeal the lower earnings limit of the qualifying earnings band so that contributions are calculated from the first pound earned. There will be a further consultation in the Autumn before any changes are implemented. The precise timing for when the changes will be implemented is not clear.

For advice or to discuss what this means for you and your business, please contact your usual Baker McKenzie contact.
 

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