Bosses are to face “one of the most significant years for a long time” as a raft of new employment legislation comes into force next month.

And, warns a legal expert, firms need to ensure they are prepared for the changes.

Among the new legislation is a change to the National Living Wage, flexible working and holiday pay.

Employment law specialist Patrick Glencross, a senior associate at Canterbury, Chatham and Whitstable-based law firm Furley Page, explained: “This year is a busy one for incoming employment legislation and the changes will make this one of the most significant years we have seen for a long time.

“There are several important updates that employers need to know about, including the usual annual increases to statutory rates.”

From April 6, employees will have increased flexibility in taking paternity leave from following the birth or adoption of a child. An eligible father or partner will be able to take one- or two-weeks’ statutory paternity leave and the rules around how the time can be taken have been relaxed, while a reduced notice of 28 days will be required, down from 15 weeks.

The Government has introduced important changes to the law governing holidays and holiday pay to simplify the rules for workers classified as ‘irregular hours workers’ and ‘part-year workers’.

Changes include how holiday entitlement is calculated, which will now accrue at the minimum rate of 12.07% of the hours in the previous pay period.

Employers of part-year workers and irregular-hours workers will now be able to opt to pay them rolled-up holiday pay (spreading the holiday pay over the year’s wages).

From April 1, the National Living Wage will be extended to workers aged 21 and 22. Employers should prepare for annual increases in rates, including rises in the National Living Wage – ranging from £5.28 to £6.40 per hour for apprentices and from £10.42 to £11.44 per hour for workers aged 21 and over - statutory sick pay, family-related statutory pay, and redundancy pay.

Then from April 6, pregnant women, mothers who have returned from maternity or adoption leave in the past 18 months, and women who have had a miscarriage in the past two weeks, will be offered priority for suitable alternative roles should they be made redundant.

Meanwhile, employees will be able to ask to work flexibly from the first day of employment, rather than needing 26 weeks’ service.

Also from that date, employees providing long-term care to a dependant can ask for one week’s unpaid leave every 12 months to care for that dependant. This is also a right from the first day of employment and the leave can be taken flexibly for any period between half a day and one week.

Later in the year, from October, employers will be under a duty to take reasonable steps to prevent the sexual harassment of their staff during their employment. This duty will sit alongside existing protections from sexual harassment under the Equality Act 2010.

The employment expert added: “Further legislation is pending, with the Employment (Allocation of Tips) Act 2023 which will require employers to share tips without deductions, the Workers (Predictable Terms and Conditions) Act 2023 which will give greater rights to vulnerable workers and the draft Statutory Code of Practice on ‘fire and rehire’ dismissals all likely to come into force later this year.

“These changes represent a broadly welcomed extension of employees’ rights, but employers need to ensure they are fully prepared for these changes when they come into effect from April.

“Contracts, policies and procedures will all need to be adjusted to take account of the new rules and ensure employers do not fall foul of their responsibilities, so taking the time to prepare is essential.”