As 2024 draws to a close, it's a good time to reflect on the year’s most significant changes in employment law. With new rules and new rights, there have been important updates which both employers and employees need to know about. In this post, we will look back at the highlights, giving you a quick refresher on key points for staying compliant and informed.
Flexible Working
In April, the right to request flexible working became a day-one right for all employees. Other updates included: employers being required to consult with employees before rejecting flexible working requests; the deadline for resolving a flexible working application has been updated to two months; and employees now have the right to make two flexible working requests in a year. Acas issued a revised Code of Practice with new guidance reflecting these changes.
Carer’s Leave
Employees have a new right to take up to one week of unpaid carer’s leave every 12 months to provide or arrange for care for a dependant with a long-term care need. This leave can be taken in single or half days.
Paternity Leave
New regulations have given employees the option to take either a one-week or two-week single period of leave, or two non-consecutive periods of leave of one week each. Paternity Leave can now be taken anytime within 52 weeks of the birth. Employees do not have to confirm exact dates until 28 days before the period of Paternity Leave is due to start.
Enhanced Redundancy Protections
Enhanced redundancy protections have been extended for employees taking Maternity Leave, Adoption Leave, and more than six continuous weeks of Shared Parental Leave.
Holiday Pay
New rules on calculating holiday entitlement and an option to pay rolled-up holiday pay came into force for holiday years starting from 1st April 2024. These changes apply to part-year workers and irregular hours workers.
Allocation of tips
New rules have been introduced for tips, deductions, and record-keeping. The requirements are explained in the Employment (Allocation of Tips) Act 2023 and the Code of Practice on Fair and Transparent Distribution of Tips.
TUPE consultation
Some TUPE consultation requirements, relating to employee representatives, have changed for transfers taking place on or after 1st July 2024.
Dismissal and Re-engagement
A Code of Practice on Dismissal and Re-engagement came into force, containing guidance on dismissal and re-engagement (‘fire and re-hire’) practices.
Sexual Harassment
A new legal duty was introduced for employers to take reasonable steps to prevent sexual harassment at work. To support understanding of this new responsibility, the Equality and Human Rights Commission (EHRC) published updated guidance for employers.
Conclusion
It has been an extremely significant year for employment law. To support clients as they navigate these changes, Bright Contracts provides a wide variety of resources which can be tailored to specific needs, including template policies and supporting documents.
Visit our website or talk to a member of our team to find out more about the help we can offer you.
A whistleblowing review at the Financial Conduct Authority revealed criticisms of the Whistleblowing Policy, contributing to further censure about the company’s treatment of whistleblowers.
The FCA has been under scrutiny since a former employee’s public allegation in August 2024 that Ashley Alder, the chair of the FCA, breached confidentiality in handling a whistleblowing communication. The whistleblower told the Financial Times they were “stunned” about the breach and accused the FCA of “incompetence and incapability”.
After the first allegation, a second former employee came forward with a similar complaint, attracting further media interest. Richard Lloyd, the senior independent director of the FCA’s board, recently concluded an internal review of these two whistleblowing cases. He found that Alder “did not follow our existing policy” in these cases, identified shortcomings, and provided recommendations to strengthen the policy. A company announcement followed which confirmed the policy will be updated.
During the FCA’s annual public meeting, Alder appeared critical of the existing policy, sharing his view that “if a policy sets expectations, even though that policy is impractical, we would obviously regret that those expectations were not met”.
Georgina Halford-Hall, Chief Executive of WhistleblowersUK, expressed disapproval, saying the case ‘demonstrates that the FCA hasn’t got its own house in order and therefore it casts serious doubt over whether it’s able to lead and deliver its duties’.
The negative media coverage is a reminder that the quality of a company’s Whistleblowing Policy is critical. A robust policy can encourage open communication, ensure compliance, and safeguard a company’s future. A weak policy undermines trust and can lead to more harm than good.
Conclusion
Integrity, trust, and ethical behaviour are crucial in today’s business environment. A successful Whistleblowing Policy helps to protect employees and their employers. However, relying on inadequate policies can result in serious consequences, including major reputational damage.
Bright Contracts clients have access to over one hundred carefully reviewed employment policies and additional resources, including a clear and comprehensive Whistleblowing Policy.
The 2024 CIPD Festival of Work was a landmark achievement for HR professional development, with over 11,000 attendees gaining access to more than 150 content sessions, 60 festival activities, and 180 exhibitors of leading products and services.
Keynote Speeches
The festival opened with Dr Daniel Hulme’s keynote speech, ‘Rethinking AI and impact on Business and Humanity’. Dr Hulme inspired attendees by generously sharing ideas for how HR practitioners could use Artificial Intelligence, including: data visualisation, chatbots, employee avatars, video generation, and network analysis.
Stacey Dooley MBE presented the next keynote, with the topic of breaking barriers and igniting change in media, mind, and society. The compelling speech was warmly received by attendees, with highlights including an amusing anecdote about her experience meeting David Dimbleby, and sincere reflections on her gratitude for the many learning experiences she accesses through her work. Attendees were moved by her explanation of the difficulties and disillusionment she experienced with education as a teenager, and her genuine appreciation for the lifelong learning opportunities offered through her career. The Learning and Development Stage offered attendees a wealth of professional development content, with topics including: lifelong learning, strategic skills development, and navigating the future landscape of learning initiatives.
The final keynote was presented by Alex Mahon, Chief Executive of Channel 4. This insightful speech explored leadership, culture, and key principles for Equity, Diversity and Inclusion. Attendees engaged with her exploration of authenticity, resilience in response to challenges, and her passion for fostering an open and honest organisational culture. The Festival provided further opportunities for reflection on the importance of EDI with a plethora of interesting presentations and panel discussions on topics including: neurodiversity, psychological safety, advocacy, and diverse leadership.
Takeaways for Employers
It’s an exciting time for professional development with a vast amount of guidance and learning opportunities, but many people are likely to feel apprehensive about the volume of work involved in keeping up with the increased compliance requirements and recommendations for best practices.
Bright Contracts clients have access to over one hundred carefully reviewed employment policies and additional resources, including new content for 2024 on Flexible Working, Carer’s Leave, Paternity Leave, and Absence Management.
Potentially the most expensive sandwich in HR history… was it filled with foie gras? Were there layers of lobster? Absolutely covered in caviar?
Well, no. It was a plain, ordinary sandwich by all accounts, coming well under the expenses limit. Yet this sandwich was integral to a Senior Banker’s dismissal (Szabolcs Fekete v Citibank NA 2023).
Fekete, a Senior Banker, put two sandwiches, two pasta dishes, and two drinks, on his lunch expenses during a work trip.
The quantity was suspicious, so he was questioned about this rather substantial lunch. Fekete responded to say the items were all for him and they were well within his expenses limit. He was hungry after skipping breakfast, the drinks were small, and the second sandwich was for his dinner. He asked why he was being put under scrutiny. However, the investigation continued, and Fekete later admitted some items were consumed by his partner, in breach of his employer’s Expenses policy. The Disciplinary procedure concluded with his dismissal.
Fekete then raised an Unfair Dismissal claim. He argued the sanction was unfairly harsh and had not sufficiently considered that he had been going through personal difficulties at the time. However, he lost the case as the Judge decided the dismissal was a reasonable response. The Judge’s conclusions emphasised that as a global financial institution, it was reasonable for Citibank to have high standards for honesty and ethical conduct.
If the Disciplinary Policy had been unreasonable, the case could have ended differently of course!
Bright Contracts clients have access to a comprehensive Employee Handbook, including a template Disciplinary Policy. Please contact us if you would like more information.
Excuses, excuses, excuses… there are many reasons why employers fail to provide legally required documents to employees. Unfortunately for employers who have failed in these responsibilities, excuses will not protect them from consequences including financial penalties and reputational damage.
In Cartmill v Always Transport and Others, the claimant Ian Cartmill explained he had not been issued with a written statement of his employment terms and conditions despite working as a Lorry Driver at Always Transport for over three years. On behalf of the respondent, Jean Murray admitted she had not completed this document as his ‘four days on and four days off’ shift pattern made it more difficult.
The Tribunal Judge stated that Ms Murray’s belief in the difficulty of completing the statement was ‘no real excuse’ and confirmed that Cartmill’s claim succeeded. Given the importance of drivers to the business, and ‘the absence of a credible reason’ for not providing the written statement, the Judge ordered an award of four weeks’ pay.
Likewise, in Mrs A Yeates v GT Plumbing & Heating Ltd, the respondent admitted there was ‘a lack of comprehension’ around HR practice. When the claimant Mrs Yeates joined the small business as a Showroom Manager/Designer, there was no employee handbook, and she did not sign an employment contract. Due to the failure to provide the written terms of employment, the Tribunal Judge ordered the respondent to pay the claimant the sum of £480.
Takeaways for Employers
It is essential to comply with the legal requirement to provide employees with written terms and conditions of employment within the required time limits. Excuses about difficulty or lack of understanding were not accepted in these tribunal cases.
Bright Contracts clients can quickly and easily create legally compliant terms and conditions of employment using the step-by-step instructions in our software.
Bright Contracts also provides a ready to go Employee Handbook which clients can tailor to their requirements. Policies and procedures are reviewed and updated in line with employment law changes and recommended practices.
The government has published a paper? which announces that, amongst other things, it will consult on proposals
The announcement comes at the same time as the government is abandoning its proposed default repeal of all retained EU law in favour of a more limited repeal.
Working time records
The government intends to consult on working time reporting and other administrative obligations under the Working Time Regulations (WTR) 1998. It believes that the current rules place unfair burdens on businesses.
These proposals would include removing retained EU case law which requires employers to record daily working hours, including overtime, worked by employees. This case was decided under the EU Charter of Fundamental Rights and the Working Time Directive. Currently, the UK's Working Time Regulations require only that employers keep and maintain "adequate" records to demonstrate that they are complying with rules on maximum working hours and protections for night workers.
Simplifying calculation of statutory holiday pay
The government proposes to simplify statutory holiday pay calculation, subject to consultation. It identifies two particular measures.
The first is to allow rolled-up holiday pay. Paying holiday pay in this way is a fairly common feature for zero-hours workers who, due to the nature of their working patterns, sometimes don't designate days specifically as annual leave. Rolled-up holiday pay was held to be unlawful several years ago, but amounts clearly identified and paid as such could be offset against any potential liabilities. This has meant that many organisations have continued to use rolled-up holiday pay, due to its administrative convenience, and the lack of a practical alternative.
The second identified measure is to merge the two types of statutory holiday entitlement. A worker's overall statutory entitlement is to 5.6 weeks of leave (28 days for a full-time worker). Four weeks of that entitlement comes from the EU Working Time Directive. The additional 1.6 weeks was granted as a purely UK entitlement. Different rules have built up over time relating to how to calculate statutory holiday pay for the two types of leave, as well as in relation to the right (or lack thereof) to carry leave over to the next holiday year. The paper is silent on which set of rules would be retained. It remains to be seen whether the government will identify any other measures for simplifying holiday pay.
Relaxing TUPE consultation requirements for small businesses
The government will consult on allowing small businesses (employing fewer than 50 people with the TUPE transfer affecting less than 10 employees) to consult directly with affected employees. Currently, unless the employer falls within the scope of a micro-business, they must consult with employee representatives on the TUPE transfer.
Limiting post termination non-compete restrictions to three months
The government is planning to legislate, when parliamentary time allows, to limit the length of post termination non-compete clauses in the employment context to three months. The government does not believe that this will affect an employer’s ability to use paid notice periods, gardening leave or other post-termination restrictions such as non-solicitation clauses. Back in 2020, the government ran a consultation on measures to reform post-termination restrictions in contracts of employment. The consultation closed on 26 February 2021 but the government has not published its response. It is unclear whether the current proposal is intended to take over?the earlier consultation.
Retained EU Law (Revocation and Reform) Bill (REUL Bill)
The government's much championed REUL Bill would have seen all EU-derived subordinate legislation effectively abolished by the end of this year by default, unless it was specifically retained. The number of affected pieces of legislation was estimated to be in the region of 4,000. The Bill allowed the government to extend, exempt or keep affected legislation, but the default position was that it would disappear from the UK statute book.
The government has now acknowledged the widespread criticism of this sunset mechanism and will replace it with a mechanism whereby only expressly listed legislation will be revoked.
It remains to be seen whether any items of employment legislation will make it onto the list of rules to be revoked. However, the government's announcements on TUPE consultation and working time rules suggest that TUPE and the WTR 1998 will be retained.
Aside from the scrapping of the sunset mechanism, the REUL Bill could still be significant for employment law in other ways. The Bill will do away with any remnants of the old principle of the supremacy of EU law as well as "general principles of EU law". In addition, the Bill effectively seeks to encourage UK courts and tribunals to stop and really think whether they should continue to follow any European Court of Justice (ECJ) case law, or domestic case law that applied ECJ case law. One area of employment law that has seen frequent ECJ interventions is the entitlement to paid annual leave.
DEI stands for diversity, equity and inclusion. As a discipline, DE&I is any policy or practice designed to make people of various backgrounds feel welcome and ensure they have support to perform to the fullest of their abilities in the workplace.
- Diversity refers to differences within a setting; in the workplace, that may mean differences in race, ethnicity, gender, gender identity, sexual orientation, age and socioeconomic background.
- Equity is the act of ensuring that processes and programs are impartial, fair and provide equal possible outcomes for every individual.
- Inclusion is the practice of making people feel a sense of belonging at work.
Combining these three elements, DEI is an ethos that recognizes the value of diverse voices and emphasizes inclusivity and employee well-being as central facets of success. To bring those values to life, companies must implement programs and initiatives that actively make their offices more diverse, equitable and inclusive spaces. DEI issues matter to candidates and employees, and initiatives improve the long term health of companies
Diversity in the workplace is important because with different backgrounds come different points of view, which ultimately leads to better ideas and solutions.
In order to ensure equal circumstances for all individuals across the organization, equity requires that employers recognize barriers and advantages. This is the crucial difference between “equity” and “equality.”
While the workplace does require professionalism and etiquette, an inclusive culture should not bar individuals from being themselves.
So how can employers be compliant in regards to DEI? In general:
- Employers can include DEI in the handbook.
- Employers can provide training/education sessions to their employees.
- Employers can set up a DEI committee where the situation is analysed and goals are set to be improved.
- Employers can make sure they balance all three and focusing on one can cause the other two to suffer.
More specifically diversity can be improved by:
- Employers can use a blind hiring process which will allows the hiring team to focus on qualifications and experience. A blind hiring process involves names and other identification factors to be removing before the CV is sent for review.
Equity can be improved by:
- Employers can work with each employee to identify development opportunities.
- Employers can avoid asking for previous salaries and instead provide salary guidelines with pay bands that offer equitable salaries for various positions.
Inclusion can be improved by:
- Employers creating a policy on inclusion for the company. In this, issues that have been known in the past can be addressed in this.
- Employers can provide benefits that are flexible and compatible for a more diverse workforce such as floating holidays so employees can have time off for the holidays they choose to celebrate or health insurance plans that offers benefits for LGBTQ+ employees.
- Employers can support differences. If employers provide food, perhaps have a separate fridge for Kosher food.
The government has turned its attention to helping individuals who have taken a career break return to work (Returners). It has now published guidance for employers (the Guidance) and a toolkit designed to help employees returning from such a break. The toolkit includes tips for Returners on how to build confidence and negotiate salaries and flexibility, as well as providing resources for job opportunities and training.
The Guidance:
The Guidance comes when many businesses are taking steps to reassess and update their policies to align with the post-pandemic working landscape. Returners are seeking flexibility in their working patterns and the same can be said for a high proportion of the UK workforce in general. Research from LinkedIn, found that:
The Guidance focuses on those who are returning to work following a period of time away to “take on a caring responsibility” as well as those returning to work after a period of absence for other reasons, such as ill health or an earlier “retirement”.
The objective is to help individuals get back into work and to help businesses recruit from a pool of experienced people. When it comes to flexibility, the Guidance urges businesses to consider where, when and how much they need people to work. Another point is that, by hiring and supporting Returners, a business can demonstrate that it is “open to non-linear career paths” and that it “values the role that caring plays in society” – a message that can help attract and retain diverse talent.
The Guidance also notes that:
The Guidance suggests several ways employers can support Returners in returning to permanent employment. Examples of such initiatives include:
Returnships– fixed-term contracts with the potential for a permanent role at the end (which can be an effective way of facilitating a trial period that benefits both the employer and employee).
Supported hiring– permanent roles, with adjustments made to support Returners;
Return to practice– sector-based training and work experience; and
Fellowships– supported research and development projects which may also lead to a permanent role.
The Guidance emphasises the importance of businesses spreading awareness of these initiatives internally, whilst also actively supporting line managers who are bringing Returners into their team. Managers should be supported both in terms of training and knowledge-sharing to ensure that the business is taking a holistic approach.
Businesses are being encouraged to actively engage with Returners, seek their perspective and listen to feedback. Support can be provided by allocating buddies, mentors and/or coaches. Businesses should then reflect on any feedback, collect additional evidence and implement reasonable changes suggested by stakeholders.
Key takeaways
Given the increasing demand for flexibility both from Returners and other employees, businesses may benefit from implementing programmes such as those proposed in the Guidance. The evidence clearly demonstrates that the wider the variety of jobs, contract types and levels of flexibility offered by a company, the greater the talent pool from which to hire. Therefore, such initiatives should be seen as “a talent attraction strategy and not just a corporate responsibility”.
In this blog, we consider how employers can define bullying, spot bullying behaviour by their staff and take effective steps to address it early.
How to define bullying behaviour?
There is no specific legal definition of bullying, which means it is difficult for employers to clearly understand the behaviours, and patterns of behaviour which are generally understood to amount to bullying.
Employers often adopt a broad definition in their anti-bullying policies, although it is often set out without due regard to the employer’s industry, working environment, culture or practices.
According to ACAS in its guide to harassment and bullying in the workplace, bullying can be described as unwanted behaviour from a person or group that is either:
“offensive, intimidating, malicious or insulting”
“an abuse or misuse of power that undermines, humiliates, or causes physical or emotional harm to someone”
This is a good starting point for any internal policy, training or guidance. However, most anti-bullying policies would benefit from examples of prohibited behaviours which relate to the employer’s particular business.
How can we spot bullying behaviour?
ACAS makes clear that bullying can be a regular pattern of behaviour or a serious one-off incident. The guidance gives examples such as:
Employers should be on the lookout for patterns of inappropriate behaviour across the business.
The dangers of leaving bullying unchecked:
Although there is no express statutory prohibition against bullying in the workplace, employers can still face legal liability if they do not take care to monitor and address any behaviour which might amount to bullying.
For example, affected employees could bring potential legal claims of harassment and discrimination on the basis of a protected characteristic under the Equality Act 2010, personal injury, and/or constructive unfair dismissal arising from the employer’s fundamental breach of contract in failing to prevent the bullying:
If bullying is related to any of the nine protected characteristics under the Equality Act 2010 it could amount to harassment or discrimination, for which the potential compensation awarded by an employment tribunal is uncapped and can include an award of injury to feelings of up to £56,200 (depending on the seriousness of the behaviour).
An employer has a duty of care under common law to provide a safe and stress-free place of work for all staff. Prolonged bullying can deteriorate an individual’s physical and mental health, and potentially give rise to a personal injury claim. A victim of bullying could be signed off by his or her GP with work-related stress and anxiety, resulting in long periods of absence from work. For an employee to have a claim for personal injury, they must show they have a medically recognised psychological injury or illness. However, the court has found that an employer will only be liable for an employee’s ill health in the circumstances if it is on plain notice of an employee’s stress, or vulnerability to stress, and then fail to address the issue. Compensation may be significant: the 2022 Judicial College Guidelines provide guidelines of average compensation for severe psychiatric damage from stress at work of between £54,830 and £115,730.
Where an employee feels they have no choice but to resign because of bullying, this could give rise to a constructive dismissal claim based on the employer’s breach of the implied term of mutual trust and confidence. Note that an employer is unable to argue in its defence that it has the same style of management as the rest of the relevant industry.
Practical steps:
Employers can focus on mitigating the risks of bullying and harassment in the workplace through a number of key steps:
Redundancy is a painful process for both the employee and the employer. It is a decision that many businesses seek to avoid but sometimes a restructure of the organisation or reducing the number of roles is necessary.
Redundancy occurs where an employee is dismissed for reasons such as:
It is essential when roles are being made redundant the selection and consultation process is fair and objective and those employees who are selected are done so in a transparent and fair manner. Most third-party claims in relation to redundancy are often based on the selection process.
Selection
There are two broad methods of selection for redundancy:
Employers would be bound by the precedent for redundancy selection in the company or agreed mechanisms between a union and the company. It is imperative that businesses are aware of the following two points:
In terms of the recommended process, employers should make an announcement to the employee(s) – advise them they’re ‘at risk’ of redundancy, explain why this is happening and inform the employee you will then be entering into consultation with them.
Consultation
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