We round up the latest employment news.
Employment Rights Bill: government publishes impact assessments and economic analysis
The government has published a number of impact assessments in respect of the Employment Rights Bill. The main economic analysis suggests that the reforms could cost businesses up to £5 billion a year.
The reforms are likely to be more disruptive for companies relying on flexible contracts in low-paying sectors, with costs proportionately higher for medium and smaller businesses because of the fixed administrative and compliance burdens. Excluding the reforms to the adult social care sector, the zero-hours reforms are stated to be the biggest cost. However, the analysis also suggests that the reforms will have a positive impact on growth, raise living standards and will benefit more than ten million workers. That said, the net overall effect on the economy is reported to be minimal.
The economic analysis acknowledges that there will be an impact on the current employment tribunal system, noting that the reforms could increase the number of claims being dealt with by Acas and employment tribunals by around 15% at a time when tribunals are already struggling to cope with demand.
Employment Rights Bill: government publishes factsheets
The government has also published 10 factsheets addressing the following matters included in the Bill:
- Overview of the Bill
- Unfair dismissal
- Trade unions
- SSP
- Fire and rehire
- Bereavement, paternity and unpaid parental leave
- Zero-hours contracts
- The Fair Work Agency
- The School Support Staff Negotiating Body
- The Adult Social Care Negotiating Body.
Each of the factsheets takes the same format, with sections setting out the current policy or legal framework, the policy intent, how the reforms will work, and key statistics.
Employment Rights Bill: four new consultations launched
The government has published four consultations on its plans to reform:
The consultation on SSP closes on Monday 2 December 2024. The other three consultations close on Wednesday 4 December 2024.
Call for evidence on Employment Rights Bill
The government has opened a call for evidence on the Employment Rights Bill. It is asking people and organisations who have relevant expertise and experience, or a special interest in the Bill, to submit their views to the House of Commons Public Bill Committee as soon as possible.
The Public Bill Committee will scrutinise the Bill line by line. The first sitting of the Public Bill Committee is expected to be on Tuesday 26 November and the Committee is scheduled to report by Tuesday 21 January 2025.
Submissions should be emailed to scrutiny@parliament.uk. The House of Commons has also published guidance on submitting written evidence to a select committee, which may be useful for respondents.
Acas updates guidance on sexual harassment
Acas has updated its guidance on sexual harassment to align with the Worker Protection (Amendment of Equality Act 2010) Act 2023, which came into force on Saturday 26 October 2024. The Act introduces a new duty for employers to take reasonable steps to prevent their staff from being sexually harassed in the workplace.
The updated guidance:
- Emphasises that employers should not wait for incidents to occur before acting and must proactively assess risks and put in place measures to prevent their staff from being sexual harassed in the first place
- Advises employers to consider where their staff are most at risk and identify and take steps to mitigate those risks
- Flags higher risk factors, such as employees meeting clients alone and the risk to younger workers
- Provides a list of considerations and some examples of the steps it may be reasonable to take
- Advises employers to act consistently and ensure that its policies, including those related to social media and the use of personal devices, refer to sexual harassment.
£24 million recovered in underpaid NMW payments
The government has published evidence on how it has enforced the National Living Wage (NLW) and National Minimum Wage (NMW) during the 2022/23 financial year.
Key findings:
- HMRC has recovered around £24 million in unpaid wages for more than 200,000 workers
- There has been a substantial increase in the number of employer inspections, with over 3,000 businesses investigated for potential wage violations
- Several awareness campaigns have been launched to educate both employers and employees about their rights and obligations under the NLW and NMW regulations. These initiatives have reached millions, contributing to higher compliance rates.
Despite these successes, the report acknowledges ongoing challenges, such as the complexity of wage calculations and the need for continuous education and support for small businesses. The government plans to invest further in technology and resources to streamline enforcement processes and provide better guidance to employers.
Living Wage Foundation announces increase in Real Living Wage
The Living Wage Foundation has increased its real living wage to:
- £12.60 across the UK (an increase of 60 pence per hour)
- £13.85 in London (an increase of 70 pence per hour).
The Real Living Wage, a voluntary rate, is independently calculated by the Resolution Foundation. It reflects the cost of a core basket of goods and services deemed essential for everyday living in the UK. Unlike the National Minimum Wage and National Living Wage, it doesn't vary depending on the age of the worker. Instead, workers are paid the same rate unless they work in London to reflect the higher costs of living in the capital.
Employers who are accredited by the Living Wage Foundation must implement the rise as soon as possible and within six months, which means that all new employees should receive the new rate by 1 May 2025.
This adjustment will benefit nearly 500,000 workers employed by 15,000 Living Wage employers.
EHRC opens consultation on updated Code of Practice
The Equality and Human Rights Commission (EHRC) launched a consultation on its updated Code of Practice for services, public functions, and associations. The updated Code incorporates the EHRC's technical guidance on age discrimination from 2016 and its guidance for separate and single-sex service providers published in April 2022.
Significant updates have been made to reflect developments in legislation and case law since the Code's initial publication in 2011. These include the introduction of section 19A of the Equality Act 2010, which came into force on 1 January 2024 and addresses ‘same disadvantage’ indirect discrimination. The Code also now includes recent case law on the definition of disability and the criteria for a philosophical belief to be protected under the Equality Act 2010.
The exceptions chapter has been amended to reflect changes in legislation regarding same-sex marriage and civil partnerships. The positive action chapter has been restructured to clarify legal requirements, and the enforcement chapter has been updated to align with legislative changes, such as the repeal of the formal questionnaire procedure. It also reflects the different enforcement terminology and procedures used in England, Wales, and Scotland.
The consultation will remain open until 3 January 2025.
Government appoints new menopause employment ambassador
The UK Government has announced the appointment of journalist and broadcaster Mariella Frostrup as its new Menopause Employment Ambassador. This voluntary role, established by the Department for Work and Pensions, aims to enhance workplace support for women experiencing menopause, raise awareness of menopause symptoms, and highlight the economic contributions of women.
Increase in religious discrimination among Muslim and Jewish employees since 7 October 2023
New research into antisemitism and Islamophobia in the workplace since the escalation of the Israel-Gaza conflict has found that:
- 36% of Muslim employees and 47% of Jewish employees reported experiencing more religious discrimination since 7 October 2023
- 43% of Jewish employees and 29% of Muslim employees felt uncomfortable discussing their religious practices at work
- 74% of Muslim employees and 63% of Jewish employees feel supported at work; and
- 69% of Muslim employees and 80% of Jewish employees encounter microaggressions at work.
To address these issues, the report recommends developing and enforcing clear anti-discrimination policies, creating open channels for dialogue and support, and offering cultural awareness and sensitivity training.
Acas reports highlight growing polarisation in workplace disputes
Acas has published two independent research reports, showing that groups involved in industrial disputes are increasingly polarised.
The first report found that for the period 2022/23, around three-quarters of users felt their disputes were resolved or progressed via Acas collective conciliation, though employers were generally less positive than unions. The report suggests improvements in preparing parties for conciliation and providing ‘aftercare’ to prevent recurring disputes.
The second report found that the current economic climate has led to greater polarisation in collective bargaining positions, making agreements harder to reach. This has resulted in wider starting positions in pay negotiations, earlier strike threats, and prolonged public sector disputes. Established unions are more willing to mobilise, and newer grassroots unions are extending their efforts beyond the workplace and are focusing on broader social justice issues. Social media campaigns and online polls have become tools to gauge support before strike ballots.
Report on Modern Slavery Act 2015
The House of Lords Modern Slavery Act Committee has released a comprehensive report evaluating the impact and effectiveness of the Modern Slavery Act 2015 (MSA). The report follows an earlier call for evidence and suggests that despite the MSA's initial acclaim as a pioneering framework, recent domestic and international developments have left the UK lagging behind.
Key findings:
- Recent immigration laws have reduced support for victims, leaving them vulnerable
- There has been a significant rise in reported victims in the care sector; and
- There needs to be better enforcement of supply chain transparency and a requirement for companies to take reasonable steps to address problems.
The government is expected to respond to the report by 16 December 2024.
WhatsApp messages as evidence in tribunals
The use of WhatsApp messages as evidence in employment tribunals has surged nearly threefold since 2019. Analysis of data from HM Courts & Tribunals Service reveals that in 2023, there were 427 tribunal hearings where employee WhatsApp messages were disclosed, up from 150 cases recorded in 2019.
Advisory group calls on the government to improve the employment rights of gig workers
A recent report by ReWAGE, an independent expert advisory group, has made a number of recommendations which it believes are necessary to enhance the rights of gig economy workers. Its key point is that gig workers should be presumed to be employees of platform companies rather than self-employed contractors. This would give them access to key employment rights and protections such as the right to receive the NMW, sick pay, pension provisions, and family-related leave.
It also calls for robust mechanisms to guarantee that gig workers can exercise their right to trade union membership and have ‘digital access’ to information about union membership.
Read more – October 2024
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