The year 2024 saw transformative updates in UK employment and corporate law, ushering in enhanced rights for workers, stricter corporate governance, and reinforced economic transparency. This newsletter explores key highlights to keep you informed and prepared for future changes. Here’s a closer look at the most significant changes.
Key Changes in Employment Law
Employment (Allocation of Tips) Act 2023
This Act came into force in October 2024 and aims to prevent exploitation in industries that rely heavily on tips. Employers must now distribute all qualifying tips, gratuities, and service charges fairly and transparently. The key points include:
- Employers cannot retain tips meant for workers.
- Tip distribution policies must be fully transparent.
Worker Protection (Amendment of Equality Act 2010) Act 2023
This Act took effect in October 2024. Employers must now take reasonable steps to prevent workplace sexual harassment by:
- Implementing preventative measures, such as training and clear policies.
- Responding proactively to incidents to foster a more equitable workplace environment.
Paternity Leave Amendment Regulations 2024
The revised paternity leave rules grant greater flexibility for new fathers or partners. Key updates include:
- The two weeks of statutory paternity leave can be split into two blocks of one week or taken together.
- Leave can be taken anytime during the first year following the child’s birth or adoption.
Flexible Working (Amendments) Regulations 2023
Flexible working is now a right from day one of employment. Employees are entitled to:
- Make two requests per 12-month period for flexible arrangements.
- Prompt responses to requests for flexibility.
Regulation 15B of Working Time Regulations 1998
New rules for irregular and part-year workers refine holiday entitlements. Workers’ holiday pay is calculated based on their actual working patterns rather than traditional methods and ‘rolled-up’ holiday pay is now permitted.
Employment Rights Bill 2024
Laying the groundwork for significant changes, this transformative bill introduces reforms that are anticipated to take effect in 2026. Highlights include:
- Enhanced protections against unfair dismissal.
- The right to request predictable work patterns.
- Regulations to curb abusive practices like ‘fire and rehire’.
Corporate Law Updates for 2024
Economic Crime and Corporate Transparency Act
The Economic Crime and Corporate Transparency Act introduces vital measures aimed at combating fraud and increasing corporate accountability. Notable aspects include:
- Enhanced disclosure obligations for company directors and beneficial owners.
- Expanded powers for regulatory authorities to tackle economic crimes.
- Increased penalties for non-compliance.
Corporate Criminal Liability Reforms
This year, tighter regulations on corporate criminal liability place increased obligations on companies regarding:
- Acts of fraud and misconduct by senior managers.
- Maintaining adequate procedures to prevent criminal acts.
ESG (Environmental, Social, and Governance) Disclosure Requirement
UK-listed companies face new requirements to improve transparency in ESG reporting, including:
- Climate-related financial disclosures.
- Social and governance metrics to highlight diversity, equity, and inclusion efforts.
Updates to Insolvency Frameworks
The UK has reformed insolvency laws to:
- Expedite processes for small business rescue.
- Strengthen creditor rights while ensuring viable businesses have pathways to recovery.
A Message from Our CEO, Hiroko Mitomi
Dear Valued Clients,
As the festive season approaches, we want to express our heartfelt gratitude for your continued trust and support
throughout the year. Your confidence inspires us to strive for excellence in everything we do, and we are truly honoured to serve you.
As the year draws to a close, it’s a perfect time to reflect on the relationships and successes that have made this year so meaningful. It has been a pleasure to support your growth and help you achieve your goals.
On behalf of the entire team at 3CS, I wish you and your loved ones a joyful festive season and a prosperous New Year.
We look forward to continuing our partnership in 2025 and beyond.
Warm regards,
Hiroko Mitomi
Chief Executive Officer
3CS
