Employment Law Update
I thought I would give you a quick round up of recent and forthcoming employment law this week.
It’s boring, I know.
However, as a business owner it is your responsibility to ensure that you are complying with the law.
You may choose to do that in house, but you may also choose to use external resources such as solicitors, document vaults, call centres or an HR practice such as ourselves. You may also choose a combination of the above.
Whatever you do, make an informed choice and manage the people aspects of your business from a position of knowledge and strength, not reaction and guesswork.
Although Labour made huge announcements on the changes they would bring to employment law within their first 100 days, it appears that they really didn’t properly understand the legal frameworks required in this country to make it happen.
As a result, most changes which have been brought in, were already on course as a result of the previous government and most of the changes proposed by labour are now in discussions and due to come in during 2026 at the earliest.
So were are we today?
In July 2024:
- The obligation on smaller businesses and those with less than 10 employees, to consult directly with their employees regarding a TUPE transfer.
- The Statutory code of practice on ‘fire and rehire’ was introduced.
In October 2024:
- All employers must now pass on tips without any deductions. This applies to all workers and employees.
- The duty to PREVETNT sexual harassment in the workplace was added to the sexual harassment legislation.
What’s coming down the line?
April 2025:
- National Minimum Wage increases – you can download our guide here. On top of this, there are also changes to tax legislation which means that there is a higher rate of National Insurance and National Insurance contributions will need to be paid on a lower threshold. However, for those who qualify, the Employment Support Allowance is increasing. For help with any of these aspects, please speak to your payroll processor or your accountant.
- Neonatal care leave and pay is being introduced for those whose newborn babies are placed in intensive care for more than 7 days. Statutory provisions will be in place automatically, but if you want to exceed these, speak to your HR Advisor who will help you to write a company specific policy.
- Statutory rates of pay are increasing from £184.03 per week to £187.18 per week for family related leave. These are subject to a minimum earnings threshold of £125 per week.
- Statutory Sick Pay will increase from £118.75 from £116.75 per week.
- We are still waiting for the weekly cap for redundancy pay which should be announced in March and implemented with effect from April.
In addition, expected in 2025, but without dates:
- Paid leave for victims of domestic abuse in Northern Ireland
- Paternity bereavement leave
- Reform of trade union laws (phase one)
In addition, expected in 2025, but without dates:
- Paid leave for victims of domestic abuse in Northern Ireland
- Paternity bereavement leave
- Reform of trade union laws (phase one)
Expected in 2026:
- Removal of qualifying period for paternity leave
- Requirement to consult employee representatives on policies for the allocation of tips
- The Threshold for collective redundancy consultation to be calculated at organisational level – currently 20 in one location. Move to 20 across the organisation is expected.
- The establishment of the Fair Work Agency to enforce employment rights
- Re-establishment of the school support staff negotiating body
- Fair pay agreement in adult social care
- Employer liability for third-party harassment – you have to work now as if this is in place.
- Sexual harassment will be added to whistleblowing legislation – meaning it will a protected disclosure
- Statutory right to bereavement leave – currently only for parents who lose a child under 18. This will be extended to immediate family members. While most employers already have this, some do not, so statutory minimums are being implemented.
- Changes to eligibility for statutory sick pay – move to pay from day one of sickness absence
- Removal of the two-year qualifying period for unfair dismissal
- Reform of zero hour contracts
- Protection against dismissal for pregnant employees and those on or returning from family related leave
- Extension of time limits for bringing employment tribunal claims – currently 3 months, probably moving to 6 months.
- Reform to the right to request flexible working – making flexible working a default position for some organisations
- Reform of trade union laws (phase 2)
- Gender pay gap and menopause action plans required for businesses with over 250 staff
- Ethnicity and disability pay gap reporting
- Reform of rules on dismissal and re-engagement – to boost the new statutory code of practice
- Protection for outsourced public sector workers
- New pensions dashboard service
I hope this has been helpful and not too overwhelming.
As Archbishop Desmond Tutu said “There is only one way to eat an elephant …. One bite at a time”
If you need assistance with any of the above, please do reach out to us… we are here to help!