Stay Ahead of the Curve: Crucial Employment Law Changes Impacting Your Business
It’s no secret that employment law is constantly evolving, keeping pace with government priorities and tribunal activity. As an employer, it’s essential to stay informed about the ever-changing landscape of employment law to ensure compliance and mitigate potential risks for your business.
Here are some of the most significant employment law changes and challenges that you and your teams need to be aware of, both now and in the near future.
Holiday Pay: Clarification on Calculation for Irregular Workers
Recent rulings, such as the Harpur Trust v Brazel case, have brought about significant changes to the calculation of holiday pay for irregular workers on permanent contracts. This impacts workers with no normal working hours who are paid on an hourly or daily basis. Employers are now required to calculate holiday pay based on a 52-week reference period, taking into account the average week’s pay across the period and multiplying it by the annual leave entitlement.
Employment Status: Navigating the Complexities
While the government has chosen not to legislate on employment status, the issuance of non-statutory guidance provides valuable insights into the differences between employees, limb (b) workers, and the self-employed. It also addresses pressing issues related to gig economy workers, zero-hours workers, freelancers, interns, and employee shareholders.
Fire and Rehire Tactics: New Statutory Code of Practice
A new Statutory Code of Practice is set to clamp down on controversial fire and rehire tactics used by employers. Tribunals and courts will be required to consider the code in relevant cases, potentially resulting in penalties for employers who fail to comply.
Parental, Carers, and Menopause Rights: Policy Changes on the Horizon
Upcoming legislative changes will provide expanded rights and support for parents, carers, and individuals navigating menopause in the workplace. The Neonatal Care (Leave and Pay) Act 2022 and The Carer’s Leave Bill are set to enhance existing provisions for individuals requiring leaves of absence from work.
Reporting Thresholds and Immigration: Enhanced Regulatory Frameworks
The reporting threshold for future reporting regulations has doubled, impacting gender pay and executive pay ratio reporting regulations. Employers are also required to adapt to new digital ‘right to work’ checks for employees with valid British or Irish passports.
The Employment (Allocation of Tips) Bill: Ensuring Fair Distribution
New legislation will prevent the withholding of tips from staff and introduce a statutory Code of Practice on tip distribution, benefiting over two million workers.
Looking Ahead: The Employment Bill and Retained EU Law (Revocation and Reform) Bill
While the Employment Bill and Retained EU Law (Revocation and Reform) Bill are still evolving, these legislative developments are anticipated to have a profound impact on employment rights and regulations in the UK.
Businesses Must Stay Informed
In this rapidly changing landscape, it’s imperative for businesses to stay informed about the latest developments in employment law. Employers are encouraged to review their current practices and contracts to ensure compliance with recent rulings and upcoming legislative changes.
For further insights into employment law and best practices, visit: What SME Owners Should Put in an Employment Contract
By staying informed, proactive, and adaptive, businesses can navigate the complexities of employment law and ensure compliance with evolving regulations.
