Proposed Changes from the new Government

Post-election special

Last month, the country voted in a new Labour government and it is looking like the employment law landscape may change and here are some key legislation updates that small businesses will need to watch out for in the coming months:

• Removing the ‘one-sided’ flexibility of zero-hour contracts. This proposal is unlikely to ban the use of zero hours arrangements entirely, but could restrict them, requiring a basic level of security and avoiding the ‘exploitative’ nature of zero-hour contracts.
• Fire and rehire. The controversial practice of businesses ‘firing’ and then rehiring employees on less favourable terms will probably come to end with more stringent measures under Labour’s plan, including a stronger code of practice than the one issued recently by the previous government.
• Basic day one rights for all workers. Currently only applicable to individuals with more than two years’ service, this proposed significant change will give all workers’ protection against unfair dismissal (still subject to probationary periods), and access to parental leave and sick pay.
• Strengthening Statutory Sick Pay (SSP) Barriers to SSP may be removed, making it available to all workers from day one of their employment, without any earnings threshold or waiting period.
• Flexible working as the default Employers could be required to accommodate flexible working requests as a default from day one, as far as is reasonable.
• Enhanced protections for new mothers It is proposed that it will become unlawful for employers to dismiss a woman who has recently returned to work after childbirth for a period of six months, except in specific circumstances outlined by law.
• Minimum wage changes Labour is looking to introduce what it refers to as a ‘genuine living wage’ and will also remove age-related bands to the NMW rates.
• Establishment of a single enforcement body The foundation of a new Fair Work Agency is designed to strengthen the enforcement of workplace rights. This body would streamline the process for employees to address issues related to pay, working hours, and other employment rights.

While these changes are fairly substantial, Labour does recognise that some parts of their New Deal for Working People will take time to review and implement and have promised full consultation so that new rules are effective.

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LEGAL UPDATES – recent cases

Employee who was part of a ‘pool of one’ redundancy was unfairly dismissed

The Employment Appeal Tribunal (EAT) tribunal found that an employee was unfairly dismissed due the employer’s failure to consult on the decision to place them in a pool of one. In this case, three other employees also performed similar roles across the UK, but the claimant was placed at risk of redundancy in a pool of one. Following a consultation process, the claimant was made redundant however, while the tribunal accepted the employer’s belief that there was a pool of one and that the role was unique, it found that the business had failed to explain these reasons to the claimant during the employee’s consultation process.

It is very tempting to operate pools of one, in an attempt to avoid dragging other employees into a stressful process, but this case highlights the very important need to consult not just on the need for redundancy, but also on the decision to operate a pool of one.

An Apple employee was unfairly dismissed for taking photos of a female colleague

An employee hired by Apple Retail UK, was found to have been unfairly dismissed after taking and sharing photos of a female colleague without her knowledge. In this case, after the employee had taken photos of a female colleague in the staff canteen and shared them in a group chat, another colleague flagged this as a concern. The employee was then dismissed for sexual harassment.

Despite Apple having policies relating to business conduct and harassment and bullying, the tribunal found the harassment policy was ‘vague and did not contain a clear definition of harassment’. The tribunal also ruled that the female colleague was unlikely to have been aware the photo was taken, and his behaviour would therefore not have impacted her. While the judge ruled that this case was a ‘stupid form of engagement’ of a ‘teenage-style crush’, the claimant’s actions did not constitute serious misconduct.

Whilst this type of behaviour may feel like an obvious fair dismissal, this case shows the importance of ensuring any harassment policies clearly define what is classified as harassment, to avoid a risk of a similar finding by a later tribunal.

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OTHER STUFF

• According to a poll of UK workers by MHR International, 58% of employees are considering leaving their jobs in the next 12 months because their employer doesn’t share the same values as them.
• Nearly one in five employees have never received cybersecurity training, according to a survey by security awareness company KnowBe4 with a further 83% of employees not having had training on password protection, deepfakes, phishing or AI.
• A survey by ethical hiring platform, Applied, found that 37% of younger workers (aged 16 to 34) have experienced bias during the recruitment process, compared to 22% of all respondents with Gen Z and millennial employees most likely to face hiring bias.

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MY BIT

I am pleased to share that I have been warmly welcomed by the local business community at various networking events this month. Meeting such wonderful people has been inspiring, and I am excited about the potential for collaborative work. I am also delighted to have provided practical employment law advice, helping businesses swiftly address and resolve issues. Additionally, I have assisted others in ensuring their contracts and HR policies are legally compliant and have supported ad-hoc projects to ensure they are fit for purpose and set up for future success.

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On a personal note, I have enjoyed volunteering at a National Under 25 Amateur Golf Competition. It was great fun and a fantastic opportunity to witness emerging talent. I have also been attending puppy training classes with my new Cavapoochon (aka Toy Poodle, Cavalier King Charles Spaniel and Bichon Frise cross), Bella who has been doing exceptionally well!

I hope you are all having a great summer so far. I look forward to catching up with some of you soon. Please do not hesitate to reach out if you would like to have an initial chat about any HR matters.

Mary

face2faceHR Bedford

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