INSITE - United Kingdom - May 2024

EUROPEAN UNION UNANIMOUSLY APPROVES COMPREHENSIVE ARTIFICIAL INTELLIGENCE ACT

Summary: On 2 February, European Union (EU) member states unanimously agreed on the text of the harmonised Artificial Intelligence (AI) Act. The European Parliament will adopt the final draft in a vote in April, and the act will come into force in 2025 with a two-year transition period.

In Detail: The AI Act introduces comprehensive rules for AI applications, using a risk-based approach to address threats to health, safety, and human rights. It will ban AI applications with "unacceptable risks" (e.g., real-time and remote biometric identification like facial recognition) and impose strict requirements on "high-risk" AI (e.g., AI in cars and medical devices). These requirements include data governance, transparency, and human oversight. United Kingdom (UK) businesses involved in AI will also be affected if they operate in the EU market, as the act has extra-territorial reach similar to the EU Global Data Protection Regulation (GDPR).

The UK's decisions on AI regulation will be influenced by the EU's approach. Last March, UK published a white paper titled "A Pro-Innovation Approach to AI Regulation," which suggests not creating specific AI laws but using existing regulators' expertise to apply principles based on the context of AI use. However, the EU's AI Act might make UK to reconsider its approach.

Key takeaway:

• New Rules for AI "Foundation Models: The Act introduces specific regulations for AI "foundation models", which are fundamental AI models used as building blocks for various applications. Providers of these models will have additional duties beyond those applicable to other AI systems.

• Risk-Based Regulation: The regulation of AI systems will be based on the level of risk they pose. AI systems categorised as "high-risk" will be subject to more stringent regulations compared to those with lower risks.

• Prohibition of Unacceptable Risks: Certain AI applications or use cases will be considered to pose "unacceptable risks" and will be prohibited, except for limited exceptions. This aims to prevent AI systems from causing harm or posing significant risks to individuals or society.

• Exclusion for Military and National Security Purposes: The Act excludes AI systems used exclusively for military, defense, or national security purposes from its scope. This recognizes the unique requirements and considerations in these areas.

• Complex Enforcement: Enforcement of the Act will involve multiple authorities across Europe, each of them will be responsible for monitoring and enforcing compliance within their jurisdiction. This decentralised approach may lead to complexities in enforcement.

• Extraterritorial Reach and Penalties: The Act extends beyond the borders of Europe, applying to providers, deployers, importers, and distributors of AI systems, regardless of their location. Non-compliance with the regulations may result in significant fines or penalties, emphasizing the importance of adhering to the requirements of the Act.

Conclusion: The EU's unanimous agreement on the AI Act represents a significant step toward regulating AI applications. The Act, set to come into force in 2025, introduces strict rules to address risks to health, safety, and human rights posed by AI technologies. It bans high-risk applications and imposes stringent requirements, impacting UK businesses operating in the EU market due to its extraterritorial reach. The Act's risk-based approach and complex enforcement mechanisms emphasize the importance of compliance for AI providers. Overall, it sets a precedent for comprehensive AI regulation, influencing global approaches to AI governance.

Key Links: The Act Texts | EU Artificial Intelligence Act

Freedom of information: Data protection roundup | Law Gazette

THE EMPLOYMENT RELATIONS (FLEXIBLE WORKING) ACT 2023

Summary: The government has introduced new laws to expand access to flexible working options due to the growing trend of hybrid working, reduced hours, and compressed work weeks. These changes increase employers' responsibility to engage with employees and make timely decisions on flexible working requests. Law firm leaders must understand and adapt to these changes.

In Detail: The Flexible Working Act 2023 and its related regulations will significantly change the statutory flexible working regime. Starting from 6 April 2024, the right to request flexible working will become a "day one right." This means employees no longer need 26 weeks of continuous employment to apply for flexible working. From this date, all employees can request flexible working from their first day of employment, provided they have not made two requests in the previous 12 months and do not have a similar ongoing application.

Key Changes to the legislation:

The new flexible working regulations introduce several key changes:

• Two Requests Per Year: Employees can now make two flexible working requests within any 12-month period, instead of just one.

• aster Response Time: Employers must respond to flexible working requests, including any appeals, within two months, down from the previous three months, unless an extension is mutually agreed upon.

• No Justification Required: Employees are no longer required to explain how their flexible working request might affect the business or suggest ways to mitigate any impact.

• Mandatory Consultation: Employers must consult with employees about the practicalities and reasons for their flexible working requests before they can refuse them. This aims to make the process more transparent and foster compromise.

Some firms have already offered flexible working from day one, but this hasn't been universal. For those not yet offering this, it is now essential to comply with new regulations. Employers must ensure they comply with the regulations to avoid financial, reputational, and regulatory consequences, and to reduce the risk of discrimination claims. offering flexible working has many benefits, such as attracting and retaining talented staff. This will help to balance work and personal lives and make employers more attractive.

Conclusion: The new Flexible Working Act 2023 introduces significant changes to the statutory flexible working regime. These regulations increase employer responsibilities and offer substantial benefits in attracting and retaining talent.

Key Links: Employment Relations (Flexible Working) Act 2023 (legislation.gov.uk)

Changes to flexible working laws | Feature | Communities - The Law Society

THE CARER’S LEAVES ACT 2023

Summary: The Carer's Leave Act 2023, passed by Parliament, grants two million employees the right to take up to five days of unpaid leave per year to care for a dependent with long-term care needs. This new right will be effective from 6 April 2024.

In Detail: The Carer's Leave Act 2023, passed by Parliament, grants employees with unpaid caring responsibilities up to five days of unpaid leave per year.

The regulations specify that employees in Great Britain with long-term unpaid caring responsibilities for a family member or friend can take up to five days of unpaid leave. This leave can be taken in full days, half days, or a block of five days. Employees must give advance notice that is twice the length of the leave they wish to take.

The law does not specify the exact types of care but is meant to cover a variety of caregiving situations. These can include taking someone to medical appointments, helping with personal care, arranging visits with health professionals or organising future care.

Employees will also have the same employment protections as other forms of family-related leave, including protection from dismissal due to taking the leave.

Key Takeaways:

• The Act allows employees to take at least one week of unpaid leave per year to care for a dependent with a long-term care need. There is no minimum service requirement to qualify for this right.

• A "dependent" includes spouse, child, or parent of the employee, anyone living in the same household (excluding tenants or lodgers), and anyone who reasonably relies on the employee for care.

• A "long-term care need" is defined as an illness or injury requiring care for more than three months, a disability under the Equality Act 2010, or care needs related to old age.

• Employees do not need to provide evidence to take this leave, and employers cannot demand it. Employees are protected from being penalized for taking leave under this Carer's Leave Act 2023.

Employers should review their policies and plan for changes to accommodate employees' right to take carer’s leave. They should also consider setting up systems to handle requests and to track and monitor the use of this leave.

Conclusion: The enactment of the Carer's Leave Act 2023 marks a crucial milestone. This fresh provision will enable numerous caregivers to remain employed while also assisting businesses in retaining their workforce. Overall, this act aims to provide much-needed flexibility and support for those balancing work with caregiving responsibilities.

Key Links: Carer’s Leave Act 2023 (legislation.gov.uk)

Two million employees set to benefit from Carer’s Leave as final details of new law go through Parliament | Carers UK