It’s that time of year when we consider forthcoming employment legislation changes from April 2024. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes.

Payroll costs – National Minimum Wage rates

Inflation continues to be a key issue for many employers who are facing pressure to increase wages.  Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2024, therefore if your pay is based on minimum wage rates per hour, you will need to implement these changes:

 

Age group	Up to 31/3/2024	From 1/4/2024
21 and over	£10.18 (£10.42 for 23+)	£11.44
18 – 20	£7.49	£8.60
Apprentices under 19 (or over 19 but in year 1 of apprenticeship) and under 18s	£5.28	£6.40

Statutory pay rates – From April 2024

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £184.03 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £116.75 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap will increase to £700 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Rolled-up holiday pay

With effect from the holiday year starting in April 2024 and thereafter, workers who work irregular or part year hours can have their holiday pay rolled in to their pay, rather than accruing actual holiday which has to be taken as leave.  The method of calculating the holiday pay will be 12.07%. Employers should note this only applies to those employees who work irregular or part-year hours. Other employees with set hours (either part or full-time) will accrue paid holiday which must be taken as paid time off.

Flexible Working Requests

With effect from 6th April 2024, employees will be able to make a flexible working request from day one of their employment, removing the current 26 weeks’ service requirement.  Employees will be able to make two requests a year (currently only one request is possible) and they will no longer be required to set out the likely effects on the business of the change.  Employers will be compelled to consult with the employee before rejecting a request and the time allowed for the whole process, including appeal, will be reduced from three to two months.

Statutory Carer’s Leave

Statutory Carer’s Leave will give carers a minimum of one week’s unpaid leave per year to care for a dependant with a long-term care needs, from day one of their employment.

This will be a day one right for employees and is flexible, however it’s likely advance notice will need to be provided, and it may be possible to postpone requests in a similar way to Unpaid Parental Leave.

This right will be in place from 6th April 2024.

Paternity Leave

An amendment to the entitlement for fathers and partners to take Paternity Leave has recently been proposed.  If approved fathers and partners will be able to take their Paternity Leave in two split weeks, should they wish, and the timeframe for taking the leave will be extended from 56 days after the birth, to 12 months after the birth, offering more flexibility to new parents.

This amendment will be effective for babies born or children adopted on or after 6th April 2024.

Redundancy Protection for Pregnancy and Family Leave

This protection extends the right to be redeployed during pregnancy (including if a miscarriage is suffered), maternity and family leave for 18 months after the start of that leave. These are important considerations during an employee’s family/maternity leave and in restructuring or redundancy exercises.  Employers who breach this protection will risk claims for unfair dismissal and sex discrimination (with uncapped compensation).

This new protection will be in place from April 2024.

Upcoming changes to be confirmed

2024 is potentially going to be another busy year for changes in employment law.  This is a summary of what may be in the pipeline when it comes to employment legislation changes from April 2024.  In some cases there are no firm dates for implementation however, it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Employment Allocation of Tips Act

This ban will make it unlawful for employers to withhold tips from staff.  In addition, employers must also have a written policy related to tip allocation in place.  This will apply to tips, gratuities and service charges given during the previous month.

This is expected to be in place from July 2024.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

This is expected to be in place from April 2025.

Right to request more predictable working patterns

Employees and workers (including agency and zero hours workers) will have the right to formally request a more stable working pattern.  In addition, this right will also be available to those on fixed-term contracts of less than a year.  This right will apply after 26 weeks of continuous employment.

Employers will only be able to refuse requests  if there is a legal reason for refusing the request.

This is expected to be in place ‘in due course’.

Proactive duty to prevent sexual harassment

This will require employers to have proactive measures in place to prevent sexual harassment in the workplace.  As a result employers will be legally responsible if no measures are in place.  And that responsibility applies, regardless of whether or not an incident has occurred. Failure to comply with this requirement could result in increased compensation of up to 25%.

This is expected to be in place from October 2024.

Pensions (Extension of Automatic Enrolment) Act 2023

This Act brings in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

There is no indication at this point when this change will come in to effect.

If you’re concerned about what these employment legislation changes from April 2024 mean for your business and need help reviewing your policies, please get in touch with Helpful HR.

The media has covered situations where individuals have been disciplined, or had offers of employment withdrawn, as a result of posts they put on social media.  This was because posts in question were deemed to be ‘unacceptable’ to their employer or potential employer.

But, the posts were made from personal accounts, so why did these organisations take this action?  Surely it’s none of their business what an individual posts on social media. Especially if the post was private or there was no mention of the organisation in their profile or the post?

When does it matter?

Even if a post is from a personal account, the key consideration is whether it can be linked to their employment.  Or if it could damage the organisation’s reputation.  This issue needs to be considered properly and fully before action is taken.  Of course a post by an employee or applicant may not put your organisation in a particularly positive light. But it’s important not to take a disproportionate view of the damage or potential damage to its reputation.  The facts should be considered carefully, including:

• The employee’s role and seniority
• The nature of the social media post
• Whether the damage to reputation is actual or potential and if it’s a genuine risk
• Whether the employee has received a previous warning for similar conduct
• Whether the employee expressed regret at their actions?
• Are there any other mitigating factors to consider?

Organisations should ensure clear information and training is given to employees about the importance of the corporate reputation and image. There should also be a clear policy about the organisation’s expectations about employees’ use of social media.  It’s also important to have clear policies on equality, diversity and inclusion and conduct training in this area.  That way the organisation can demonstrate the their stance in these areas, and therefore how the employee’s actions are a direct breach.  A clear disciplinary policy and procedure is also important, ensuring it includes the types of behaviour and conduct that will be regarded as serious, or gross misconduct.

Rights of the parties

Obviously, individuals have rights under the Human Rights Act 1998, and the GDPR Data Protection Act 2018, so monitoring social media needs to be done with care, to avoid breaching these rights.  It requires a very careful balancing act to make sure the rights of both parties are protected.  Not easy.

When it comes to monitoring social media, it’s always best to have a very clear policy about social media and data protection, privacy and monitoring.  Equally important is ensuring these policies are within the principle of fair, lawful and transparent processing of personal data.  Generally, the most usual grounds for monitoring this activity will be legitimate interests. But again, this needs to be balanced against the individual’s rights and freedoms.  If the social media account is private, and there was an expectation it would remain so, then potentially the individual’s rights would override the organisation’s legitimate interests in monitoring that activity.

The organisation would need to articulate the purpose of the monitoring. For example, if it were to prevent sexual harassment, or ‘hate speech’, this might provide a legitimate reason.  A stronger argument might be reputation protection of the business, and minimising vicarious liability for the acts of an individual.  If the individual doesn’t have a private account and states the name of their employer on their profile, a clear connection can be made. If the named organisation were seen to tolerate posts of a discriminatory nature the reputational damage would be difficult to deny.

How do you deal with it?

If an employee puts a post on social media that is contrary to their aim to eliminate discrimination and hate speech, or which detrimentally impacts the organisation’s reputation, it should be treated as any disciplinary would.  The disciplinary policy should be followed as with any disciplinary issue.  The investigation and consideration of all the facts and impact on the organisation should be thorough. Any investigation conducted should be undertaken by someone other than the employee’s manager, or the person who will make the ultimate disciplinary decision.  Any action you take must be done within the ACAS Code of Practice for disciplinary and grievances.  Regardless of the severity of the alleged offence, employers should not dismiss an employee without following a fair process.

If one of your employees has made social media posts of concern, and you’d like advice, get in touch.

The Covid-19 pandemic had an undeniable impact on everyone’s lives.  During that time, the requirement to work flexibly created a new landscape, which employers are still having to navigate.

For some employees, that switch to remote, flexible working appears to have resulted in the ‘always-on’ phenomenon. There’s no real boundary between work time and personal time. This means that employees can work around other personal commitments or activities, if they wish. However some people find it difficult to switch off, in some cases leading to a culture of presenteeism.

What is Presenteeism?

The CIPD states that presenteeism occurs when people work when in suboptimal health.  Your employees are attending work when they are unwell, and are therefore unable to be productive.  Absenteeism has a huge cost implication for employers.  But interestingly, the CIPD also reports that presenteeism has a much bigger cost (according to research by Deloitte).

Why is it a problem?

Unless addressed, presenteeism can lead to a culture where presence indicates commitment and success. I.e., if you turn up early and leave late you’re doing a great job, you will be more valued, and potentially rewarded accordingly.  What it doesn’t do is lead to an increase in productivity and it can cause a toxic culture. These things will drive away talent, further decreasing productivity.

There are also other effects, for example:

• Employees come to the workplace with contagious illnesses, which spread through the workforce, increasing absence and / or presenteeism.
• Employees won’t take the rest from work they need to recover, therefore stay unwell for longer, or their health deteriorates further.
• Employees working while unwell will understandably demonstrate less enthusiasm and motivation, leading to low morale. This low morale may be contagious within the workforce, even in your healthy employees.
• Depending on the sector, employees who are unwell are more likely to have workplace accidents, putting themselves and others at risk.
• Presenteeism means that employees aren’t giving their full commitment to their work, and therefore will not progress and develop, which may lead to further demotivation and disengagement.
• The quality of work produced is less likely to be as high as it might otherwise be, if the employee was healthy. This may have a knock-on effect on colleagues, for example causing frustration, or blockages and delays in systems and processes.

What can you do about it in your business?

Leaders need to be proactive in changing the narrative about the behaviours that are valued in their business. They need to move away from a ‘bums on seats’ approach (i.e. presenteeism), and instead focus on outputs and achievements. One of the first things they can do is lead by example. Create those work and home time boundaries. For example, only respond to emails during working hours, or as close as you can get (unless it’s business critical). Encourage employees to leave work, or if remote, switch off at the end of their contracted hours.

Tips to reduce presenteeism

• Find out why people are behaving this way, either through focus groups or an anonymous survey, and find out about their concerns around taking time off ill, and blurred work / home boundaries.
• Look at your sickness absence policy. Will employees suffer significantly financially every time they take a day off sick?  Do you have a fair sickness absence review policy which is consistent, reasonable and supportive?  And if you make changes to your policy, ensure these changes are communicated. Create clear messaging that supports taking time off if it’s needed, so people can fully recover and then return to work.
• Consider what you could do to promote a healthy working environment that supports mental and physical wellbeing.  For example discounted gym membership, walking meetings, cycle to work schemes, wellbeing apps, mental health first aiders and training for all employees.
• If you use zero hours contracts, consider if this is a factor. Review your resourcing model to establish if you could reduce these and create more stability for your workforce.
• Improve manager / staff communication, so that managers are familiar with their employees and have positive working relationships. Employees may then feel the can share any health concerns with confidence, and managers will spot warning signs of any health or wellness issues.

If you’ve noticed your employees seem to be working when they are clearly unwell, and you want to find out why, or need support to change those habits, get in touch.

In the workplace, managers and colleagues give feedback to others as part of their normal management and team practices.  Feedback should be constructive, and it’s a valuable process, aimed at improving skills, communication, relationships and success (individual and organisational).

In a study by Christine Porath[1], she found that higher levels of feedback were associated with 89% greater thriving at work, 63% more engagement and 79% higher job satisfaction.  She also found that giving honest, careful feedback and creating a ‘feedback loop’, (where team members provided feedback to each other), created stronger connections, and better relationships at work.  Adding recognition and / or reward in to the mix lead to employees becoming happier and more engaged.

The good and the bad

Provided the feedback is truly constructive, there’s no such thing as ‘bad’ feedback as all feedback of this nature will be valuable.

But if that feedback is not constructive, or not delivered in an appropriate way, I think we can probably call it ‘bad’ feedback, as it will often have the opposite effect of what is desired. i.e., it resulted in a disengaged, demotivated employee, and ultimately damage their success and potentially that of the team.

How to give good feedback

For many years there was a well-known saying linked to giving feedback which was referred to as the ‘**** sandwich’ i.e., say something nice, say something negative and then distract the person with something positive again. It seems this doesn’t work because the ‘negative’ points get lost, with people, understandably, clinging to the positive messages.

Here are our top tips for preparing and providing good quality feedback.

Preparation:

• Be clear what you’re providing feedback about and consider what you want the outcome to be
• Allocate enough time to the feedback session and make sure it’s in a confidential setting without interruptions
• Be factual, specific, kind and objective – describe behaviour / actions / outcomes, not personality, attitude or character
• Provide the context and describe what you noticed.  E.g., “I noticed that your reports have been submitted 2-3 days late on a couple of occasions lately”
• Outline the impact and why it’s a problem
• Write down the key points you want to get across.

The meeting:

• Present your prepared observations
• Be mindful of your body language and tone.  Keep it calm and respectful
• Ask for their perspective of your observations
• Encourage them to explore alternatives – ways to improve next time
• Present feedback as a positive opportunity, not a threat, and include a balance of feedback (i.e., if some things went well, say so)
• Listen actively, show empathy and demonstrate you’re listening – paraphrase and reflect what you’ve heard
• Acknowledge their feelings
• Reaffirm that your intention is to offer feedback to help them improve their performance, and help them progress, develop, grow in their role and the organisation.

Feedback should be given as close to an issue arising to ensure it’s relevant, and to demonstrate that it’s important.  Don’t wait for your next scheduled monthly or quarterly 1-1 to share the feedback.

If you need to give difficult feedback to an employee and you’re not sure how, get in touch.

 

[1] Mastering Community: The Surprising Ways Coming Together Moves us from Surviving to Thriving by Christine Porath 2022

What is unconscious bias?

Unconscious bias is a term which is commonly used in relation to equality, diversity and inclusion in the workplace.  In this blog post we try to demystify unconscious bias and explain what it really means.

Unconscious bias is an unconscious inclination or prejudice.  It can be referred to in the context of a ‘gut’ feeling, or instinct feeling people have. These feelings will be informed by experiences and influences during their lives.  There is usually no ill will, but it is nevertheless seen as an issue in workplaces.  This bias can influence business decisions, and can compromise an employer’s ability to be an inclusive and equal workplace.

From a legal perspective, the areas to be aware of are around certain criteria, which could be covered under the description of a ‘protected characteristic’ most commonly related to age, gender, race, religion/belief, disability, sexuality and marital/partnership status.

Unconscious bias around gender, for example is the way someone might assume that a pink clothing item is appropriate for a little girl, or that little boys play with trucks while girls will want a dolly to play with.  Or age bias might be that an older person is overqualified for a junior role they’ve applied for.

We’re all human, and our decisions are informed by our own experiences.  So if it’s just about being human, why is it a problem?

What’s the problem?

Put simply, not tackling unconscious bias, means that those experiences and influences informing our decisions will continue to harm certain groups or individuals, unchecked.  Being aware of our natural bias, means that we are more likely to look beyond the assumptions we may instinctively make about an individual or group, and prevent us from treating those people differently.   Ultimately if they are treated differently, or they suffer a detriment as a result, they may have a claim for (indirect or direct) discrimination.

Over time, employees who think they are treated differently due to unconscious bias, develop feelings of isolation and alienation, and feel uncomfortable being themselves. This would take its toll on anyone, and may also affect the organisation’s performance overall.  Employees who experience bias and prejudice often actively disengage and reduce their contributions, and ultimately seek a role elsewhere.

What are the benefits of tackling unconscious bias?

Equality, diversity and inclusion (EDI) is seen as an increasingly important part of what a business has to offer.  To be an inclusive employer means that employees feel welcome, valued and included. This in turn means team members will stay longer and be more engaged and productive.

Diversity in the workplace is a serious competitive advantage with immediate and tangible benefits. It ensures a variety of different perspectives and a variety of different skills and experiences.  It gives organisations access to a greater range of talent, potentially increasing creativity and innovation.

The best way to overcome unconscious bias, is to ensure people become more self-aware (and self-critical) about their decisions and behaviours.  This can be done via training in a variety of formats. Alternatively, you could develop some supporting systems and processes, to ensure decision makers at all levels are challenged in a safe setting.

You can find out more about the benefits of tackling unconscious bias and what approach works here.  And if you’d like some advice about EDI issues in your business, please do get in touch.

Mental Health Awareness week in the UK is an initiative introduced by the Mental Health Foundation.  In 2023, Mental Health Awareness week is from 15-21^st May and the theme this year is Anxiety.

Anxiety can affect people both physically and mentally. People may experience different symptoms, including increased heart rate, headaches and chest pains.  It can cause people to feel tense or nervous, making it hard to relax and detrimentally affect sleep and concentration.

Mental health is something everyone has, like physical health, and they are connected – you will have noticed physical symptoms of anxiety described above.  Equally, those experiencing physical health problems can experience declining mental health as a result.

Mental health at work

Your employees’ mental health problems have a big potential impact at work, for example:

• Increased absence from work
• Lack of concentration leading to reduced productivity
• Increased accidents at work due to lack of attention
• Increased attrition rates
• Poor morale and low-esteem in the workforce

It is estimated that cost to employers of poor mental health at work cost £56 billion per year [1], consisting of:

• absenteeism cost: £6.1 billion
• presenteeism cost: £24.8-£27.6 billion
• staff turnover cost £22.4 billion

So, if you consider the cost, investing in ways to support good mental health at work seems to be a ‘no-brainer’.

Promoting good mental health at work

Businesses can take small steps to support their employees’ mental health. Here are some ideas:

1. Talk to people in your team and get to know them, so you can notice any changes in their behaviour and demeanour.
2. In your regular 1-1s with your team, ask them how they’re feeling, if they have any worries or concerns, and respond constructively. Normalise that kind of conversation.
3. Encourage your staff to ‘switch off’ out of work, especially when it comes to accessing and responding to emails outside of working hours.
4. When addressing issues with your staff, make sure you deliver difficult messages in a kind and supportive way.
5. Consider introducing an Employee Assistance Programme which offers a confidential counselling support service.
6. If you operate as a remote business, think about introducing more face-to-face interactions with your team, or alternatively review the frequency of video / phone calls.
7. Encourage employees to take physical exercise, whether lunchtime walking or yoga, walking meetings, sponsored challenges, subsidised gym membership, volunteering days or competitive ‘step challenges’ between teams.
8. Introduce a ‘buddy’ system, where a colleague is allocated to an employee as an additional support. This provides another way for them to flag concerns.
9. Train some employees as Mental Health First Aiders, and provide regular training about mental health to all employees and managers.
10. Ensure your managers are meeting their team members regularly and providing feedback to them, not just via an annual appraisal system.

Mental Health problems affect one in four people in any given year [2] so if you have a team of 12 people, 3 of them may be struggling.  If those three employees are absent as a result, then that could have a big impact on your business.

If you would like help with supporting the mental health of your employees, get in touch here.

References:

1 – Source: Deloitte | March 2022

2 – Source: Mind.org.uk

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2023.

Payroll costs – National Minimum Wage rates

The cost of living increase continues to be a key issue for many employers who are facing pressure to increase wages.

Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2023, therefore if your pay is based on minimum wage rates, you will need to implement these changes:

Age group​	Up to 31/3/2023	From 1/4/2023	% Increase​
23 and over​	£9.50	£10.42	9.7%
21 or 22​	£9.18	£​10.18	10.9%
18 – 20​	£6.83	£7.49	9.7%
16-17	£4.81	£5.28	9.7%
Apprentices under 19 (or over 19 but in year 1 of apprenticeship​)	£4.381	£5.28	9.7%

Statutory pay rates

Family friendly leave

From 3 April 2023 Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £172.48 per week.

Statutory Sick pay

On 3 April 2023 Statutory Sick Pay will increase to £109.40 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap increases to £643 per week, therefore for anyone who leaves due to redundancy on or after this date, you will need to calculate their redundancy pay on this new rate.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Bank holidays – The King’s Coronation

In 2023 there will be an additional Bank Holiday to celebrate the King’s Coronation, on Monday 8th May 2023. This is in addition to the usual May Day Bank Holiday on 1st May, and the Spring Bank Holiday on Monday 29th May 2023.

An employee’s individual contract of employment will dictate whether they are entitled to take this additional day off and how this day’s leave will be treated.  Employers should check the wording in their employees’ contracts, and communicate clearly to employees if they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

Upcoming changes to be confirmed

2023 is potentially going to be a busy year for changes in employment law, with lots of Bills under consideration.  This is a summary of what may be in the pipeline.  There are no firm dates for implementation, but in the meantime it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Retained EU Law (Revocation and Reform) Bill

During her brief time as Conservative Prime Minister, Liz Truss expressed the Party’s commitment to change Working Time Regulations’ rules on taking breaks, limiting the 48-hour working week and calculating holiday pay. In addition, the government introduced the Retained EU Law (Revocation and Reform) Bill which, if passed unamended, will remove all UK laws containing EU law by the end of 2023. In addition it will give the government powers to repeal or replace those laws without Parliamentary scrutiny. As well as the working time rules, the TUPE and the agency workers regulations may be at the top of a possible list for reform, due the fact that these laws derive directly from EU regulations.

Anti-strike policies

Conservative proposals for restricting the effect of industrial action were outlined by the the previous Secretary of State for Transport, Grant Shapps in July 2022. Consequently, some anti-strike measures are already passing or have passed into law, such as the Strikes (Minimum Service Levels) Bill and Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 which allow organisations to use agency workers to cover striking workers.

However, the Regulatory Policy Committee have stated the Strikes Bill is ‘not fit for purpose’ and subsequently have suggested another impact assessment is needed. In addition, the TUC has mounted a legal challenge to the agency worker rule change, which is due to be heard in March 2023.

The Carer’s Leave Bill

The Carer’s Leave Bill will give carers one week’s unpaid leave a year to care for a dependant with a long-term care need that is:

• likely to last more than three months;
• is a disability under the Equality Act 2010; and/or
• connected to old age.

This will be a day one right for employees.

Many organisations already support carers and have policies in place, however this will involve changes to flexible working policies and practices, therefore communicating any changes relating to flexible working requests and requests for carer leave to managers will be very important, to ensure any speculative enquiries are dealt with appropriately.

The Protection from Redundancy (Pregnancy and Family Leave) Bill 

This bill extends the right to be redeployed during pregnancy (including miscarriage), maternity and family leave for 18 months after the start of that leave. These are important considerations that will have to be managed during an employee’s family/maternity leave and in restructuring or redundancy exercises.

Neonatal Care (Leave and Pay) Bill

The Neonatal Care (Leave and Pay) Bill will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave in addition to their statutory maternity or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

Employment (Allocation of Tips) Bill

This bill will make it unlawful for employers to withhold tips from staff.  A new statutory Code of Practice on how tips should be distributed will be developed, and in addition workers will gain a new right to request information on an employer’s tipping record to help them to bring a tribunal claim under the new rules.

Employment Relations (Flexible Working) Bill

This new legislation would:

• make flexible working requests a day one right for employees (thereby removing the current 26 weeks’ service requirement)
• allow employees to make two requests a year (currently only one request is possible)
• require employers to consult with the employee, before rejecting a request
• shorten the time employers have to reply to a request from three to two months
• remove the requirement for employees to set out the likely effects on the business of the change.

Workers (Predictable Terms and Conditions) Bill

This bill will give all employees and workers (including agency and zero hours workers) the right to formally request a more stable working pattern and will be available to those who:

• have worked for the employer for 26 weeks (not necessarily continuously)
• are on work patterns that lack certainty in the hours and time they work
• are on fixed term contracts under 12 months’ in duration.

Workers will be able to make two requests a year, however employers will be able to refuse requests on specific grounds, e.g. due to the additional costs involved or a lack of work at the times requested.  This reform is intended to rectify one-sided flexibility favouring employers to the detriment of workers.

Office of the Whistleblower

A Bill on whistleblowing could, if passed, repeal the current framework in the Public Interest Disclosure Act 1998 and introduce broader protection with a bigger range of penalties. The bill involves the creation of a new body, potentially called the Office of the Whistleblower, which would be given investigation powers and have the authority to order redress.

Auto-Enrolment Pension Changes 

There is an Automatic Enrolment Private Members Bill moving through Parliament which looks set to bring in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

Predictions are that this particular change will come in to effect either in April 2024, or at the earliest in October 2023.

And….

The government is also backing the Worker Protection (Amendment of Equality Act 2010) Bill currently passing through Parliament, which would cover the following:

• reintroducing employers’ liability for the harassment of their staff by third-parties (whether they are customers, clients, or suppliers). This liability was previously removed in 2013;
• requiring employers to proactively prevent the sexual harassment of their staff;
• allowing for a 25% uplift in any award in a successful sexual harassment tribunal claim where the employer failed to prevent the harassment occurring.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.

 

 

The post-Covid ‘Great Resignation’ has received a lot of coverage, as employees re-evaluate their priorities decide to make life-changes.   Employers are definitely experiencing challenges in hiring, due to low unemployment rates and high inflationary pressures. Undoubtedly the impact of Brexit is in the mix, adding to the difficulties in certain sectors.

Earlier this year, the FT reported that in Q1 2022 UK unemployment rates fell to their lowest in nearly half a century.  In August 2022 People Management reported that the number of job vacancies rose to a new high of 1.85m in the last week of July 2022.  We are now experiencing much higher rates of inflation, with the Consumer Price Index exceeding 10% in July 2022. This increased inflation is putting pressure on employers to increase wages.

With inflationary pressures affecting employees and employers alike, many employers are undoubtedly feeling the ‘squeeze’. Their challenge is to balance the organisation’s need to retain and recruit talent in a competitive market, with the increasing demand for high salaries.

People Management also reported in July 2022 that 80% of employers are hiring for ‘potential’ skills and capabilities, with a view to developing their own talent.  In order to address the skills shortage, maintain low attrition rates and ensure the organisation’s capability is developed, 60% of employers are providing employees with learning resources to support organisational capability. Employers are having to take a more creative approach to retaining and attracting talent. It’s no longer feasible to rely on the draw of a high basic salary, to ensure the organisation’s costs don’t escalate.

What are the practical steps employers can take to aid retention and resourcing?

There’s no one panacea, as organisations in different markets will experience the current climate in different ways. But a good place to start is for leaders to ask themselves 10 challenging questions:

1. Do you have leaders who motivate and inspire their teams and lead with compassion?
2. How capable and effective are your people managers at managing in the Post-Covid era of hybrid working?
3. How healthy is your organisation’s culture?
4. Are benefits aligned with employee priorities, and do you know what your people value?
5. Can you offer career progression and development opportunities?
6. Does the organisation have a sense of community, where employees are truly invested and engaged in the organisation?
7. Is good performance rewarded with valued benefits?
8. Do you have a long-term talent strategy, for example a pipeline through relationships with education establishments, or apprenticeships?
9. Are your recruitment processes efficient and effective, and do good candidates ‘disappear’ during the process?
10. How successful are your new hires and what are the retention rates during the first six-12 months?

Once you have answered these questions, you may be able to identify areas of focus. These areas can then help you to develop a retention and attraction action plan for the short and long-term.

If you’re finding the current labour market challenging, or if you’re experiencing the ‘Great Resignation’ first hand in your business, get in touch with Helpful HR.

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2022.

Gender pay gap reporting

For businesses in the private sector with a headcount of 250 or more, your ‘snapshot’  gender pay gap reporting is due to be published on or before 4^th April 2022.  The information about what you need to report can be found here.

There is currently speculation about the introduction of new ethnicity pay gap reporting, but there are no clear plans to introduce that requirement.

Payroll costs – National Minimum Wage rates

The cost of living increase is likely to be a key issue for many employers who will face increasing pressure from employees to increase wages.

Whilst there is no legal requirement to increase pay to address issues with increases in inflation rates, National Minimum Wage/living rates are going up on 1 April 2022 so if your pay is based on minimum wage rates, you will need to implement these changes:

Age group​	Up to 31/3/2022	From 1/4/2022	% Increase​
23 and over​	£8.91​	£9.50​	6.62​
21 or 22​	£8.36​	£9.18​	9.81​
18 – 20​	£6.56​	£6.83​	4.12​
Under 18 (but above compulsory school age​)	£4.62​	£4.81​	4.11​
Apprentices under 19 (or over 19 but in year 1 of apprenticeship​)	£4.30​	£4.81​	11.86​

Health and Social Care Levy – 6 April 2022

The UK is introducing a new social care levy  from 6 April 2022 to help fund health and social care. This will be collected via a 1.25% increase in National Insurance rates for employers and employees in 2022.

People above State Pension age will not be affected by the temporary increase to National Insurance contributions for the 2022 to 2023 tax year, but will be liable to pay the levy from April 2023.

Statutory pay rates

Family friendly leave

From 3 April 2022 Statutory Maternity, Adoption,  Paternity, Shared Parental and parental bereavement pay will increase to £156.66 per week.

Statutory Sick pay

On 6 April 2022 Statutory Sick Pay will increase to £99.35 per week.

Statutory redundancy payments

For anyone made redundant on or after 6^th April 2022, the statutory redundancy pay weekly pay rate increases to £571, therefore for anyone who leaves due to redundancy on or after 6^th April 2022 you will need to base their redundancy pay on this new weekly cap.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Right to work checks

Although the concept of right to work checks is not new, there are changes to be aware of which come in to effect from 6th April 2022.  Full guidance is here

Key changes include:

• implementation of a new Identity Document Validation Technology (IDVT) process,
• changes for those that hold a Biometric Residence Card, Biometric Residence Permit or Frontier Worker Permit.

Bank holidays – The Queen’s Jubilee

In 2022 there will be an additional Bank Holiday to celebrate the Queen’s Platinum Jubilee on Friday 3rd June. The usual late May bank holiday has moved to Thursday 2 June to give workers a four-day weekend.

Individual contracts of employment will dictate whether employees are entitled to take this additional day off, and how this day’s leave will be treated.  Employers should check the wording in contracts and communicate clearly to employees whether they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

As the Jubilee week is to all intents and purposes a 3-day week and is at school half-term in most places, employers should prepare for a large number of annual leave requests.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.