Employment Law & HR Update (August 2024)

In the August edition of our Employment Law & HR update, we have published a selection of news, insights, case studies and more on topics including:

• Upcoming changes to the law on sexual harassment;
• National Minimum Wage and payroll deductions;
• Disability and resignation: Tribunal rules on employee's right to rescind; and
• High Court Ruling: When is a restrictive covenant too long?

If you require further information on anything included in this update or any employment issue you may be facing, please do not hesitate to contact the Employment team on 01332 867 766.

Upcoming changes to the law on sexual harassment

A new employers duty to come in to force - Where are we now?

As regular readers will know, a new law aimed at preventing sexual harassment in the course of employment will come in to force on 26 October 2024. Consultation on new EHRC technical guidance closed on 06 August and we now await the final version, anticipated to be available in September.

As a reminder, the Worker Protection (Amendment of Equality Act 2010) Act 2023 will introduce a new preventative duty on employers to take reasonable steps to prevent staff from being sexually harassed. Failure to comply with this duty could lead to intervention/enforcement from the EHRC and an uplift of up to 25% in compensation awarded by an Employment Tribunal.

Key points to note:

• The duty is preventative and employers are obliged to take steps before harassment happens, rather than react to it when it does.
• The new duty also applies to preventing sexual harassment by third parties.
• Where harassment has already taken place, the duty will require employers to take action to stop it from happening again.?

So what do we need to do?

Employers will need to undertake urgent risk assessments to identify where harassment might occur, consider what steps can be taken to avoid that risk and implement reasonable steps to prevent it.

What constitutes “reasonable steps” will depend upon the size and the resources of the employer but it is likely to include:

• a thorough review and update of internal policies;
• widespread publication and implementation of those policies and overall awareness raising;
• provision of updated and targeted training to all staff on what sexual harassment is; how to spot it; and how to report it.

Our employment solicitors can help review policies to ensure that they comply with the new EHRC guidance. For further support and advice, please call a member of our team on 01332 867766 to discuss your requirements.

National Minimum Wage and payroll deductions

HMRC v Lees of Scotland

In the case of HMRC v Lees of Scotland, a seemingly harmless employee holiday fund led to significant legal challenges regarding National Minimum Wage compliance. The case underscores how even well-intentioned actions can put employers at risk of violating wage regulations.?

Learn more about the tribunal's decision and the critical takeaways for businesses in our detailed case analysis.

Disability and resignation: Tribunal rules on employee's right to rescind

In a recent Employment Tribunal decision, the case of Bradley v Royal Mint sheds light on the complex issue of an employee’s right to rescind their resignation when it's influenced by a disability.

The ruling emphasises the importance of employers thoroughly assessing the circumstances surrounding a resignation, particularly when disability-related factors are involved. Failing to do so can lead to discrimination claims, as seen in this case.

For employers, this serves as a critical reminder to seek medical opinions and carefully consider the legal implications before finalising such decisions.

Read more

High Court Ruling: When is a restrictive covenant too long?

Literacy Capital Plc v Vanessa Jane Webb

In the case of?Literacy Capital Plc v Vanessa Jane Webb, the High Court dismissed an application for an interim injunction, raising critical questions about the enforceability of lengthy restrictive covenants.

The case centred around a 10-year non-compete clause, which the Court found to be excessive and unsupported by legitimate business interests. This ruling serves as a cautionary tale for employers and business owners, emphasising the need for reasonable and well-justified covenants in commercial agreements.

Read more to explore the Court's reasoning and the implications for future restrictive covenants.

If you require further information on anything included in this update or any employment issue you may be facing, please do not hesitate to contact the Employment team by calling 01332 867 766 or send an email to [email protected]