28 new changes the Labour government have announced to employment law

The Labour government have announced 28 new changes to employment law. These changes will impact every business in the UK. Navigating these changes can be difficult, and getting it wrong will be costly and damaging.

Some of the changes include:

Day one rights – The current “2 year rule” will be changed to day 1. This will fundamentally change the way you manage your staff.

Zero Hour contracts will be banned – Regular hours will need to be offered to employees.

Working flexibility for all – Requesting a four day week or changes to working hours will be a day one right for employees.

Enhanced rights to sick pay – Your employees will need to be paid more when they are off sick,

What does this mean for you as an employer and your business?

In light of these changes, it is crucial your company’s documentation, contracts, and policies are updated and it is vital that you prepare for these changes in advance. You must also ensure that these changes are communicated to your employees through  training, meetings, or written format.

The Worker Protection (Amendment of Equality Act 2010) Act 2023

The Worker Protection (Amendment of Equality Act 2010) Act 2023 came into force on 26 October 2024, laying down that employers have a positive legal duty to take reasonable steps to prevent sexual harassment of their workers.

Earlier this year, the Equality and Human Rights Commission (EHRC) consulted on a revised version of its 2020 technical guidance covering these new responsibilities.

Now, the Commission has published that updated guidance to help employers to understand their legal responsibilities in relation to harassment and victimisation, the steps they must take to prevent sexual harassment at work and what they should do if harassment occurs.

Available on the EHRC website, Sexual Harassment and Harassment at Work: Technical Guidance provides help for workers and lawyers and gives employment tribunals and courts clear guidance on the law on harassment and victimisation, the legal scope of the preventative duty and best practice on the steps that employers could take to prevent and deal with harassment and victimisation.

The guide:

  • sets out, with examples, a definition of harassment (with a note on how this relates to a protected characteristic) and unwanted conduct
  • examines the meaning of victimisation
  • considers obligations and liabilities under the Act
  • emphasises that employers can and must take action to change workplace behaviours and eradicate harassment in the workplace.

It goes into detail on the preventative duty and on complicated areas such as third-party harassment and employer liability, harassment by a colleague outside of work, indirect discrimination and harassment of former workers.

The Commission makes clear that, if an employer does not comply with the preventative duty, it has the power to take enforcement action and it gives details of potential increases in compensation at an employment tribunal for sexual harassment.

Employers must be proactive in assessing risk, identifying action, and regularly reviewing processes.

How can we help?

  • develop and widely communicate a robust anti-harassment policy, which includes third-party sexual harassment
  • carry out regular risk assessments to identify where sexual harassment may occur and the steps that will be taken to prevent it
  • be aware of what is happening in the workplace and any warning signs by engaging with staff through personal meetings, surveys and exit interviews.
  • offer training to line managers / supervisors, so you can be seen to be proactive and taking the changes seriously.

Clocks change this weekend

Clocks spring forward this weekend

In the UK the clocks go forward one hour at 1am on Sunday 26th March 2023 when we move to British Summer Time (sometimes called Daylight Saving Time). Most people will miss when the clocks actually change, although there will no doubt be the brief moment of confusion in the morning when we try to work out what the time actually is.

For some, however, who work overnight, they will see and feel the effects of this. So, what should employers do for those that are working overnight between Saturday 25th March and Sunday 26th March 2023?

Impact on pay and working hours 

When the clocks change in October, employers are faced with concerns about working an extra hour and how to adjust pay for that time, especially for those paid minimum wage. In springtime, however, the concern is more likely to be that employees will technically be working an hour less in their shift as a result of the clock change; for example, an employee working an eight-hour shift will actually only work for seven hours.

Payment for this time will come down to what is written in the contract of employment. If it sets out that the worker is entitled to hourly pay, paid for every hour they work, then they will only receive payment for seven hours. If, however, the employee is salaried, they will more than likely receive their usual pay regardless of whether they work one hour less. This is because a salaried employee is more likely than an hourly paid employee to be required to work extra hours without additional pay and to be entitled to pay even if they work fewer hours.

Be consistent 

Subject to any contractual constraints, it is up to employers how they deal with this matter as long as they are consistent and fair in their decision. They may, for example, ask the employee to work an extra hour or simply “write it off”.

Be prepared 

Employees due to work when the clocks go forward should be reminded that this will happen and told how their employer will be dealing with it. In particular, those due to start work early on Sunday morning are most likely to be caught out, so a reminder of the rules on lateness would be appropriate, as well as encouraging them to prepare for the change.

National Minimum Wage, National Living Wage, SSP, SMP etc. 2023/2024 rate increases

National Minimum Wage, National Living Wage, SSP, SMP etc. rates 2023/2024

The Department for Work and Pensions has published its annual rate increases for 2023/2024.

The annual increase to the National Minimum Wage and National Living Wage are as follows:-

  • 23+ – £10.42 (previously £9.50)
  • 21-22 – £10.18 (previously £9.18)
  • 18-20 – £7.49 (previously £6.83)
  • 16-17 – £5.28 (previously £4.81)
  • apprentices – £5.28 (previously £4.81)

The accommodation offset will be £9.10 per day (previously £8.70).

The rate for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), adoption pay (SAP), shared parental (ShPP) and parental bereavement (SPBP) pay will increase to £172.48 per week (previously £156.66). The rate for Statutory Sick Pay (SSP) will increase to £109.40 per week (previously £99.35).

These changes will take effect in April 2023.

Covid related sick pay comes to an end

In line with the Government’s strategy to “live with Covid”, in England at least, many of the Covid restrictions (and support) have come, or are coming to, an end. February saw the end of the legal requirement to self-isolate and the need for face coverings, and now March brings the end of special SSP rules.

Since 13th March 2020, employees off work due to Covid, either because they themselves had it, had symptoms, or had contact with someone who did, have been paid statutory sick pay (SSP) from day one of their absence (subject to the absence being at least 4 days in length).

The SSP rebate scheme, originally opened in March 2020, closed 30th September 2021 and reopened between 21st December 2021 and 17th March 2022, enabled employers to claim back for up to two weeks of these SSP payments per employee, relieving some of the burden of forced isolation and absence from the business.

What’s happening from 24th March 2022?

SSP Rebate Scheme

This is the last day eligible employers can make or amend claims for SSP paid for Covid-related absences between 21st December 2021 and 17th March 2022. Failure to submit a claim by the end of 24th March will mean employers will not be able to claim the rebate.

End of Covid-related SSP provisions

A number of changes were made to SSP rules in light of the pandemic. These come to an end on 24th March 2022. These include:

  • payment from the first day of the absence
  • payment for isolating due to Covid, Covid symptoms or contact with Covid, when the individual is not actually unwell.

What does this mean for employers?

This puts employers in a tricky position. In England the legal requirement to self-isolate was scrapped on 24th February 2022. As such, they will need to decide what to pay employees whilst they are off work following the guidance. As SSP rules are applied across Great Britain, it remains to be seen what will be put in place in Wales and Scotland, as self-isolation in Wales does not end until 28th March 2022, and advice in Scotland is still to isolate.

For many, they can return to home working temporarily. For those that are left too unwell to work due to the virus, they will get whatever sick pay would normally be due. The biggest problems arise for those that cannot work from home, but are well enough to work. In this case, employers may choose to extend sick pay to these people to reduce the risk of Covid transmission in the workplace.

2021: HR Year in Review

2021: HR Year in Review

2021 has been a year of fast-moving changes. Here we look back on some of the challenges employers have had to deal with over the last year.

Covid

  • The closure of the furlough scheme on 30 September 2021,
  • The ending of the shielding programme on 15 September 2021,
  • The roll out of mandatory Covid vaccines for CQC-regulated care homes in England.

Mandatory vaccinations are being extended to wider health and social care settings from April 2022. This includes public (NHS) and private organisations and will affect all frontline workers who have direct, face-to-face contact with service users, in both clinical and ancillary roles.

  • “Plan B” saw a return to compulsory face coverings in most indoor places, guidance to work from home and the introduction of Covid-passes in nightclubs and large events.

It has also been confirmed that booster doses of Covid jabs will be included within the scope of full vaccination as soon as reasonably possible. Organisations may therefore need to review the existing Covid-status of their workforce to include this.

Statutory Entitlements

  • Carer’s leave to be introduced as soon as parliamentary time allows. This allows employees with caring responsibilities to take up to one week (5 working days) of unpaid leave per year from day 1 of employment.
  • Flexible working. Consultation into changing this has now closed. Proposed changes include making it the default position, a day-one right to submit a request and allowing more than one request per year. It also reviewed the existing eight fair reasons for refusal and assessed the timeframe employers have to respond. An outcome is expected early 2022.
  • The Real Living Wage rates were increased in November 2021 to £11.05 (London) and £9.90 (rest of the UK).
  • New National Minimum Wage rates have been confirmed for April 2022: 23+ year olds = £9.50; 21-22 year olds = £9.18; 18-20 year olds = £6.83; 16-17 year olds = £4.81; Apprentices = £4.81.
  • New statutory rates have also been proposed (and are likely to come into force) as follows: SMP, SShPP, SAP, SPP, SPBP £156.66, SSP £99.35, LEL £123.

Equality and Diversity

  • Gender pay gap reporting has returned with a 6-month extension to publish 2020/2021 reports, until 5 October 2021. Normal April deadlines apply from now on.
  • The CIPD called on the government to introduce mandatory ethnicity pay gap reporting by 2023.
  • A cross-government Menopause Taskforce was established, looking at the role education and training, workplace policies and peer groups for menopausal women can play in supporting women. Many organisations signed the Menopause Workplace Pledge, showing their commitment to recognise that the menopause is an issue and women need support.

Brexit

  • The UK officially left the European Union on 31st December 2020, which saw significant changes to right to work checks and immigration rules. Applications for settled status closed at the end of June 2021, subject to limited extensions.
  • A new points-based immigration system saw an increase in employers applying for a sponsorship licence, to employ those to whom settled status doesn’t apply.

IR35

From 6 April 2021, tougher requirements were put on employers to decide the status of contractors, freelancers and consultants, to ensure that employers were not evading their employment related tax liabilities. If contractors are “deemed workers” i.e they fall inside of IR35, they can no longer be paid “off payroll”. Instead, they will be paid via payroll after tax and NI is deducted. Previously, it was the contractor’s responsibility to assess their tax status, but this now falls on the organisation. It is worth noting however that the status of workers for tax purposes is not the same as in employment law.

Government proposes to extend flexible working requests

The Government has launched a consultation into changing current flexible working legislation. This is open until 1st December 2021, where the responses will then be reviewed and a decision on any changes confirmed. Until then, all current rules and processes will remain in place as usual.

Its proposal is to introduce measures to help make flexible working the default, unless employers have good reasons not to. It aims to bring more employees into the scope of the legislation by making the right to request flexible working available from day-1 of employment. The government has recognised that external events (for example, the Covid-19 pandemic and its associated impact on home-life and caring responsibilities) are not limited to people who have worked in their roles for 6 months. It has also been raised that underrepresented groups, like new parents and disabled workers, are more in need of flexible working opportunities. However, there is a wider belief that the introduction of these measures will benefit productivity, motivation, retention and competitiveness, as well as help attract more talent to organisations.

The consultation is also assessing whether the current 8 business reasons for refusal are still valid, although the assumption is that fundamental changes are not needed in this area.

A separate assessment is being completed into the administrative processes associated with managing flexible working requests; specifically, the time scales for responding and the ability for employees to make more than one request per year, which is currently all they are entitled to. The government is considering allowing employees to submit a higher number of requests, to remove any unnecessary barriers to accessing flexible working arrangements amongst those whose personal situations might be impacted more frequently than every 12 months.

Similarly, the statutory Code of Practice outlines that employers should respond to requests within a 3-month period but the government is debating whether to make it a requirement to respond more promptly and the effect on organisations if this was introduced. Organisations should already be prepared for processing flexible working requests without any unreasonable delays, with many of them not needing the full 3 months to respond. As such, it is expected that this change, if implemented, won’t have a detrimental impact on organisations. But, employers may need to be prepared to manage a surge in requests being submitted by their workforce. This might involve hiring more HR personnel and undertaking training courses to ensure managers know how to deal with requests efficiently.

In addition, if the proposal is approved, employers should be prepared to amend their current policies and procedures on flexible working, to ensure they are compliant with the new legislation. We await the outcome of the consultation to see the exact impact on current practices and better understand what organisations will have to do moving forwards.

End of virtual right to work checks postponed

We previously published the below article on virtual right to work checks, outlining plans for them to come to an end on 21st June 2021. However, the government has since confirmed that this will be delayed until 31st August 2021. Please read below for more information.

As a result of the pandemic, last year the government made it possible for organisations to conduct right to work changes virtually on a temporary basis. This is now due to end on 31st August 2021. 

What are right to work checks?

To ascertain whether an individual originally from overseas (including the EU) has the right to work in the UK, and to prevent illegal working, organisations should carry out right to work checks. In normal times, there are three steps they must complete. These are:

  • obtain original right to work documents (such as a passport) from the individual
  • check the validity and authenticity of the documents in the presence of the individual
  • copy the documents and keep a secure, dated copy which includes the date for follow-up checks.

Alternatively, from 29th January 2019, organisations can use the Home Office’s online right to work checking service to carry out immigration checks.

What changed due to the pandemic?

In 2020, the government changed the right to work checking process so that organisations did not need to meet with staff directly. Under this temporary system, a scanned copy or photograph of documents necessary to prove a right to work should be sent to the organisation via an email or mobile app.

A video call is then arranged with the worker, where they are asked to present their original documents to the camera. These documents are then compared with the digital versions previously sent. The date of this check is recorded and noted as ‘adjusted check undertaken on [insert date] due to COVID-19’.

Previously, it was expected that organisations would need to carry out a retrospective check through the usual method outlined above once this temporary option was stopped, however the government has since confirmed that this will no longer be the case.

What’s happening from 31st August 2021?

The temporary provision to conduct these checks virtually is to be discontinued from 31 August onwards (previously 17th May then 21st June), meaning that, generally, in-person checks will need to be conducted. Whilst video calls will still be permitted for this, a crucial difference is that the organisation will need to be sent the original versions of the important documents, not copies, which may cause inconvenience for the employees in question.

The change to this guidance originally caused confusion for organisations due to the fact that working from home guidance is not changing. Currently, it is expected that, at least in England, staff will continue to be encouraged to work from home if they can until at least 19th July 2021. This reversion to the usual right to work checking process prior to this date therefore did seem to go against this as it would have resulted in more direct, in-person contact between organisations and their employees.

New right to work checking system expected

It should be remembered that a new right to work checking system is currently expected to come into force from 1st July 2021 due to Brexit, as this is when the grace period between the UK and the EU comes to an end. The government has yet to confirm what this will involve.

End of virtual right to work checks postponed

Last week, we published the below article on virtual right to work checks, outlining plans for them to come to an end on 17th May 2021. However, the government have since confirmed that this will be delayed until 21st June 2021. Please read below for more. 

As a result of the pandemic, last year the government made it possible for organisations to conduct right to work changes virtually on a temporary basis. This is now due to end on 21st June 2021. 

What are right to work checks?

To ascertain whether an individual originally from overseas (including the EU) has the right to work in the UK, and to prevent illegal working, organisations should carry out right to work checks. In normal times, there are three steps they must complete. These are:

  • obtain original right to work documents (such as a passport) from the individual
  • check the validity and authenticity of the documents in the presence of the individual
  • copy the documents and keep a secure, dated copy which includes the date for follow-up checks.

Alternatively, from 29th January 2019, organisations can use the Home Office’s online right to work checking service to carry out immigration checks.

What changed due to the pandemic?

In 2020, the government changed the right to work checking process so that organisations did not need to meet with staff directly. Under this temporary system, a scanned copy or photograph of documents necessary to prove a right to work should be sent to the organisation via an email or mobile app.

A video call is then arranged with the worker, where they are asked to present their original documents to the camera. These documents are then compared with the digital versions previously sent. The date of this check is recorded and noted as ‘adjusted check undertaken on [insert date] due to COVID-19’.

Previously, it was expected that organisations would need to carry out a retrospective check through the usual method outlined above once this temporary option was stopped, however the government has since confirmed that this will no longer be the case.

What’s happening from 21st June 2021?

The temporary provision to conduct these checks virtually is to be discontinued from 21st June onwards (previously 17th May), meaning that, generally, in-person checks will need to be conducted. Whilst video calls will still be permitted for this, a crucial difference is that the organisation will need to be sent the original versions of the important documents, not copies, which may cause inconvenience for the employees in question.

The change to this guidance originally caused confusion for organisations due to the fact that working from home guidance is not changing. Currently, it is expected that, at least in England, staff will continue to be encouraged to work from home if they can until at least 21st June 2021. This reversion to the usual right to work checking process prior to this date therefore did seem to go against this as it would have resulted in more direct, in-person contact between organisations and their employees.

In response, a number of industry bodies contacted Home Secretary Priti Patel, asking her to reconsider the change. It has since been confirmed that the change will be pushed back to 21st June 2021.

New right to work checking system expected

It should be remembered that a new right to work checking system is currently expected to come into force from 1st July 2021 due to Brexit, as this is when the grace period between the UK and the EU comes to an end. The government has yet to confirm what this will involve.

Virtual right to work checks to end from 17th May 2021

As a result of the pandemic, last year the government made it possible for organisations to conduct right to work changes virtually on a temporary basis. This is due to end this month.

What are right to work checks?

To ascertain whether an individual originally from overseas (including the EU) has the right to work in the UK, and to prevent illegal working, organisations should carry out right to work checks. In normal times, there are three steps they must complete. These are:

  • obtain original right to work documents (such as a passport) from the individual
  • check the validity and authenticity of the documents in the presence of the individual
  • copy the documents and keep a secure, dated copy which includes the date for follow-up checks.

Alternatively, from 29th January 2019, organisations can use the Home Office’s online right to work checking service to carry out immigration checks.

What changed due to the pandemic?

In 2020, the government changed the right to work checking process so that organisations did not need to meet with staff directly. Under this temporary system, a scanned copy or photograph of documents necessary to prove a right to work should be sent to the organisation via an email or mobile app.

A video call is then arranged with the worker, where they are asked to present their original documents to the camera. These documents are then compared with the digital versions previously sent. The date of this check is recorded and noted as ‘adjusted check undertaken on [insert date] due to COVID-19’.

Previously, it was expected that organisations would need to carry out a retrospective check through the usual method outlined above once this temporary option was stopped, however the government has since confirmed that this will no longer be the case.

What’s happening from 17th May 2021?

The temporary provision to conduct these checks virtually is to be discontinued from 17th May onwards, meaning that, generally, in-person checks will need to be conducted. Whilst video calls will still be permitted for this, a crucial difference is that the organisation will need to be sent the original versions of the important documents, not copies, which may cause inconvenience for the employees in question.

The change to this guidance has caused confusion for organisations due to the fact that working from home guidance is not changing. Currently, it is expected that, at least in England, staff will continue to be encouraged to work from home if they can until at least 21st June 2021. This reversion to the usual right to work checking process therefore does seem to go against this as it will result in more direct, in-person contact between organisations and their employees.

To this end, a number of industry bodies have contacted Home Secretary Priti Patel, asking her to reconsider the change. However, the government have so far not deviated from this and organisations will need to prepare for the change.

New right to work checking system expected

It should be remembered that a new right to work checking system is currently expected to come into force from 1st July 2021 due to Brexit, as this is when the grace period between the UK and the EU comes to an end. The government has yet to confirm what this will involve.