Labour’s Employment Rights Bill was published on 10^th October, the first stage of their Plan to Make Work Pay, in what’s been hailed by CEO of the CIPD as ”the greatest shift in employment legislation in decades”.

The Bill is the headline plan, there is still lots of detail missing, and some changes that were predicted, have not been included in this stage. The government plans to consult on the reforms next year, and any new legislation will not be implemented until 2026, at the earliest.

Here are the key things you need to be aware of:

Right to claim unfair dismissal will be a day one right, but with a caveat

Currently those dismissed with less than 2 years continuous service can’t claim unfair dismissal at an employment tribunal.  This requirement for 2 years service will disappear, and any employee would in theory have the right to make a claim.

However, there will be consultation on the use of a statutory probation period to allow for an initial judgement about a new joiner’s suitability for the role. Indications are this will either be a 6 or 9 month statutory probation period. The suggestion is that there will be a simplified process for dismissal during the statutory probation period, but there is still much detail to be provided prior to 2026 about how it will work in practice.

Employers will be thinking about how they can make their recruitment processes more stringent, so the right hiring decisions are made at the start, with some employers saying that they are less likely to take risks at the appointment stage, for example offering a role to a candidate who lacks experience but shows enthusiasm.

Flexible working will be the default, but with a caveat

Flexibility will be the default, unless the employer can prove it’s unreasonable, for a potentially valid reason, including the burden of additional costs, a detrimental effect on ability to meet customer demand, an inability to re-organise work among existing staff or recruit additional staff, and a detrimental effect on quality or performance; all of which are currently justifiable reasons for rejecting a flexible working request.

Currently employees with any length of service can request to work flexibly, and this request can only be refused on specific grounds – which are similar if not the same as those included as a valid reason for disallowing default flexibility. There is a change of emphasis and there will be a greater requirement for the employer to demonstrate why the role can’t be done flexibly as requested.

Employers will be thinking about how they manage the selection and onboarding processes so there is transparency about the employee’s requirement or desire for flexibility and what is reasonable, from the start.

Zero-hours contracts will stop, but with a caveat

Workers will have the right to be offered a contract with guaranteed hours, based on their regular hours worked over a defined period, expected to be the previous 12 weeks.  However, workers can opt to remain on a zero hours contract if they prefer.

This replaces previous legislation due to be implemented where workers could request a predictable working pattern if they had 26 weeks’ service.

Employers will be considering how they currently use zero hours contracts, if there’s an alternative contract (for example a fixed term contract), and review the hours their zero hours workers currently work to see how they may be impacted.

Parental rights will be strengthened with expanded leave entitlements

Employees will have a day one right to paternity, parental, and bereavement leave. Currently employees need 26 weeks of continuous service to qualify for statutory paternity and ordinary parental leave.

Bereavement leave will extend beyond the existing entitlement for parents who lose a child. Broader compassionate leave rights are expected but the details of how long and whether it will be paid remain uncertain.

Employers will be considering what the financial and practical impact of this change might be, looking at the demographics of their workforce, allowing for planning and mitigating risk.

Employees will get sick pay from their first day of illness

There will no longer be any ‘waiting days’ before an employee who is off work due to sickness will be eligible for SSP.  This pay will now be available from the first day of their absence, provided the employee meets the eligibility criteria. The criteria are also likely to be changed to make it more accessible for all employees, regardless of their earnings level.

Employers will be looking at their current sickness absence figures, and planning for the increase in costs of the additional 3 days SSP applicable.

There will be a ban on ‘fire and rehire’ practices, but with a caveat

The government will shut down the ‘loopholes’ that allow ‘fire and rehire’ and ‘fire and replace’ to continue. The practice of terminating an employee’s contract and rehiring them on different terms will be restricted, and these dismissals will be treated as ‘automatically unfair’, unless employers can evidence financial hardship as the reason for the change to terms and it was unavoidable. Employers will need to show such a change was a ‘last resort’ after thorough consultation and consideration of alternatives.

Employers will be considering what other changes they could make should there be a need to reduce costs across the business, before looking at forcing through changes to worker terms and conditions, so they can demonstrate it is a last resort.

Collective redundancy consultation and notification requirements will change

When an employer proposes making 20 or more redundancies at one establishment, there is a requirement to notify the DBIS and collectively consult.  The changes proposed mean there will be a requirement to collectively consult if the Company intends to make more than 20 redundancies, regardless of which establishment in the UK the losses will apply.

Employers will need to review their policies and internal procedures for establishing the need for collective consultation processes and plan accordingly should redundancies be necessary.

Requirement to prevent sexual harassment of workers will be extended

On 26 October, the Worker Protection Act 2023 came into force, introducing a new duty for employers to take ‘reasonable steps’ to prevent sexual harassment of their employees.  The Labour government has set out its intention to require employers to take ‘all reasonable steps’ to prevent sexual harassment, rather than just ‘reasonable steps’. It will also make employers vicariously responsible for protecting workers against harassment by third parties, a measure which was removed from the Worker Protection Act during the parliamentary process.

Employers will need to go ‘belt and braces’ with the preventative steps they can take in their business to prevent sexual harassment and tighten up how they can reasonably prevent harassment by a third party, as well as how they should respond to a complaint in light of this new liability.

Firms will be required to publish their intentions around improving equality

Large organisations (250+ employees) will have to develop and publish an equality action plan to show the steps they are taking in relation to gender equality.

 A new Fair Work Agency will crack down on unscrupulous employers

The government has announced it will establish the Fair Work Agency, combining existing enforcement functions around minimum wage, statutory sick pay, the employment tribunal penalty scheme, labour exploitation and modern slavery, to create a “strong, recognisable single brand” that will make it easier for individuals to know where to go for help. The Fair Work Agency will also cover a new area of enforcement – the holiday pay policy.

The Strikes Act and Trade Union Act 2016 will be repealed

The Bill will repeal the minimum service levels legislation introduced in 2023, and will repeal all but two parts of the Trade Union Act 2016.

The new government has set out plans to introduce new rights of workplace access for trade union officials and employer obligation to inform employees of their right to join a union.  The bill also brought forward measures to modernise trade union laws, including a reduction in the threshold for a recognition application from 10 per cent of the workforce.

Employers may want to introduce a ‘staff forum’ as a preventative measure to minimise the likelihood of union presence or recognition, or how they could engage proactively with unions in a positive way to build good employee relations. Contracts will need to be revised to include employee’s rights to join a union, and a communications plan to ensure the need to remind them will need to be devised.

Other plans outside of the Employment Rights Bill

The government has stated some of its commitments will be delivered outside of legislation, and they believe they can deliver more reform and therefore do not need all the commitments to be included in the bill.

This includes:

• Introducing the ‘right to switch off’, to prevent employers from contacting staff outside of their working hours.
• expanding the Equality (Race and Disability) Bill making it mandatory for large employers to report their ethnicity and disability pay gap.
• consulting on single worker status, aiming to transition towards a simpler two-part framework for employment status
• reviewing parental leave and carers’ leave systems

As a reminder, Labour’s Employment Rights Bill is subject to consultation as well as the usual passage through the House of Commons and the House of Lords, before it will become law in 2026, so there is plenty of time to prepare. More information is available here.

If you need help preparing, please get in touch.

It’s that time of year when we consider forthcoming employment legislation changes from April 2024. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes.

Payroll costs – National Minimum Wage rates

Inflation continues to be a key issue for many employers who are facing pressure to increase wages.  Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2024, therefore if your pay is based on minimum wage rates per hour, you will need to implement these changes:

Statutory pay rates – From April 2024

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £184.03 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £116.75 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap will increase to £700 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Rolled-up holiday pay

With effect from the holiday year starting in April 2024 and thereafter, workers who work irregular or part year hours can have their holiday pay rolled in to their pay, rather than accruing actual holiday which has to be taken as leave.  The method of calculating the holiday pay will be 12.07%. Employers should note this only applies to those employees who work irregular or part-year hours. Other employees with set hours (either part or full-time) will accrue paid holiday which must be taken as paid time off.

Flexible Working Requests

With effect from 6th April 2024, employees will be able to make a flexible working request from day one of their employment, removing the current 26 weeks’ service requirement.  Employees will be able to make two requests a year (currently only one request is possible) and they will no longer be required to set out the likely effects on the business of the change.  Employers will be compelled to consult with the employee before rejecting a request and the time allowed for the whole process, including appeal, will be reduced from three to two months.

Statutory Carer’s Leave

Statutory Carer’s Leave will give carers a minimum of one week’s unpaid leave per year to care for a dependant with a long-term care needs, from day one of their employment.

This will be a day one right for employees and is flexible, however it’s likely advance notice will need to be provided, and it may be possible to postpone requests in a similar way to Unpaid Parental Leave.

This right will be in place from 6th April 2024.

Paternity Leave

An amendment to the entitlement for fathers and partners to take Paternity Leave has recently been proposed.  If approved fathers and partners will be able to take their Paternity Leave in two split weeks, should they wish, and the timeframe for taking the leave will be extended from 56 days after the birth, to 12 months after the birth, offering more flexibility to new parents.

This amendment will be effective for babies born or children adopted on or after 6th April 2024.

Redundancy Protection for Pregnancy and Family Leave

This protection extends the right to be redeployed during pregnancy (including if a miscarriage is suffered), maternity and family leave for 18 months after the start of that leave. These are important considerations during an employee’s family/maternity leave and in restructuring or redundancy exercises.  Employers who breach this protection will risk claims for unfair dismissal and sex discrimination (with uncapped compensation).

This new protection will be in place from April 2024.

Upcoming changes to be confirmed

2024 is potentially going to be another busy year for changes in employment law.  This is a summary of what may be in the pipeline when it comes to employment legislation changes from April 2024.  In some cases there are no firm dates for implementation however, it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Employment Allocation of Tips Act

This ban will make it unlawful for employers to withhold tips from staff.  In addition, employers must also have a written policy related to tip allocation in place.  This will apply to tips, gratuities and service charges given during the previous month.

This is expected to be in place from July 2024.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

This is expected to be in place from April 2025.

Right to request more predictable working patterns

Employees and workers (including agency and zero hours workers) will have the right to formally request a more stable working pattern.  In addition, this right will also be available to those on fixed-term contracts of less than a year.  This right will apply after 26 weeks of continuous employment.

Employers will only be able to refuse requests  if there is a legal reason for refusing the request.

This is expected to be in place ‘in due course’.

Proactive duty to prevent sexual harassment

This will require employers to have proactive measures in place to prevent sexual harassment in the workplace.  As a result employers will be legally responsible if no measures are in place.  And that responsibility applies, regardless of whether or not an incident has occurred. Failure to comply with this requirement could result in increased compensation of up to 25%.

This is expected to be in place from October 2024.

Pensions (Extension of Automatic Enrolment) Act 2023

This Act brings in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

There is no indication at this point when this change will come in to effect.

If you’re concerned about what these employment legislation changes from April 2024 mean for your business and need help reviewing your policies, please get in touch with Helpful HR.

As a small business you might ask ‘why do I need HR?’ if you have a small headcount and everything seems to be going well.  An HR Consultant is often engaged to support and advise when there are employee related issues or problems. That might be a situation involving redundancy, a disciplinary, grievance or dismissal.  Of course, ensuring that these situations are dealt with correctly is very important.  We do our job, help you to resolve the issue and that’s that.  All good.  But there IS more to HR than troubleshooting of this kind, and it’s important even (or I would argue especially) for small businesses. The way your people are managed will have a direct impact on their success, and by implication the the success of your business.  In a small business where the headcount is under 50, each employee has a greater proportional impact on the working environment, the team, the success of the business and how well it functions.

What do I need to know about HR?

The Chartered Institute for Personnel and Development (CIPD), states that Human Resources Management (HRM) is:

“…the function within an organisation that focuses on the recruitment, management, and direction of the people who work in the organisation. HRM can also be performed by line managers.”

There are multiple stages in an employment relationship, some of which are included in the definition above.  If we look at this in more detail, the stages are:

Employees experience these activities during their journey with you, their employer. But you won’t positively impact the success of your people and your business without considering the ‘how’ in each of these areas. Let’s look at each stage in more detail:

Attraction

What skills, knowledge and experience do you need, and how will you attract these people in a competitive recruitment market?

Recruitment

What are your recruitment methods, and do they successfully identify if the candidates have the skills, knowledge and experience you need?  How many of your new starters leave before they finish their probationary period with you?

Onboarding

How can you ensure effective onboarding of someone into their job and the company, enabling them to become productive quickly and begin making a positive impact on your business?

Development

How do you develop your onboarded employees? What development and progression can you provide so that your people become better and better at their jobs and become the experts, managers or leaders of the future?  Or do people leave to get that development and progression?

Retention

How do you treat your employees while they’re with you? What can you offer them that will keep them loyal and engaged?  Or might they always be on the lookout for the next opportunity elsewhere?  How do you make sure you keep all the knowledge, skill and experience you have supported and developed from walking out of the door, reducing your ROI, and increasing your costs?

Separation

How do you treat leavers? Does that change depending on whether they’re a voluntary or involuntary leaver? What do your current employee population observe when others leave, and does that process feel dignified, respectful and make them feel glad they still work there?  Could your leavers be employees of the future, once they’ve gained other experiences, and would they want to return to you?

And the cycle continues…..

What should I do?

In short, the first stage would be to look at what you currently do.  Ask yourself and selected others 5(ish!) key questions:

1. Are your people processes efficient and effective for the business and your people?
2. What kinds of experiences do your employees have at the various stages of the employee lifecycle?
3. What kinds of behaviours do you value? Do you see these demonstrated by your managers and employees consistently in their interactions with each other?
4. What kind of employer do you want to be?  How does that link in with your brand marketing and PR?
5. How high is your employee turnover? How successful are your attempts to recruit new talent?

This is just the start of the process, and it will lead to further conversations and questions, no doubt.  Maybe this next year is the year you start to take a strategic approach to your people management practices?

If you’re asking yourself “Why do I need HR?” and you’d like more information, or if you would like support to look at any or all of these areas to make your business even more successful, get in touch.

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2023.

Payroll costs – National Minimum Wage rates

The cost of living increase continues to be a key issue for many employers who are facing pressure to increase wages.

Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2023, therefore if your pay is based on minimum wage rates, you will need to implement these changes:

Statutory pay rates

Family friendly leave

From 3 April 2023 Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £172.48 per week.

Statutory Sick pay

On 3 April 2023 Statutory Sick Pay will increase to £109.40 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap increases to £643 per week, therefore for anyone who leaves due to redundancy on or after this date, you will need to calculate their redundancy pay on this new rate.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Bank holidays – The King’s Coronation

In 2023 there will be an additional Bank Holiday to celebrate the King’s Coronation, on Monday 8th May 2023. This is in addition to the usual May Day Bank Holiday on 1st May, and the Spring Bank Holiday on Monday 29th May 2023.

An employee’s individual contract of employment will dictate whether they are entitled to take this additional day off and how this day’s leave will be treated.  Employers should check the wording in their employees’ contracts, and communicate clearly to employees if they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

Upcoming changes to be confirmed

2023 is potentially going to be a busy year for changes in employment law, with lots of Bills under consideration.  This is a summary of what may be in the pipeline.  There are no firm dates for implementation, but in the meantime it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Retained EU Law (Revocation and Reform) Bill

During her brief time as Conservative Prime Minister, Liz Truss expressed the Party’s commitment to change Working Time Regulations’ rules on taking breaks, limiting the 48-hour working week and calculating holiday pay. In addition, the government introduced the Retained EU Law (Revocation and Reform) Bill which, if passed unamended, will remove all UK laws containing EU law by the end of 2023. In addition it will give the government powers to repeal or replace those laws without Parliamentary scrutiny. As well as the working time rules, the TUPE and the agency workers regulations may be at the top of a possible list for reform, due the fact that these laws derive directly from EU regulations.

Anti-strike policies

Conservative proposals for restricting the effect of industrial action were outlined by the the previous Secretary of State for Transport, Grant Shapps in July 2022. Consequently, some anti-strike measures are already passing or have passed into law, such as the Strikes (Minimum Service Levels) Bill and Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 which allow organisations to use agency workers to cover striking workers.

However, the Regulatory Policy Committee have stated the Strikes Bill is ‘not fit for purpose’ and subsequently have suggested another impact assessment is needed. In addition, the TUC has mounted a legal challenge to the agency worker rule change, which is due to be heard in March 2023.

The Carer’s Leave Bill

The Carer’s Leave Bill will give carers one week’s unpaid leave a year to care for a dependant with a long-term care need that is:

• likely to last more than three months;
• is a disability under the Equality Act 2010; and/or
• connected to old age.

This will be a day one right for employees.

Many organisations already support carers and have policies in place, however this will involve changes to flexible working policies and practices, therefore communicating any changes relating to flexible working requests and requests for carer leave to managers will be very important, to ensure any speculative enquiries are dealt with appropriately.

The Protection from Redundancy (Pregnancy and Family Leave) Bill 

This bill extends the right to be redeployed during pregnancy (including miscarriage), maternity and family leave for 18 months after the start of that leave. These are important considerations that will have to be managed during an employee’s family/maternity leave and in restructuring or redundancy exercises.

Neonatal Care (Leave and Pay) Bill

The Neonatal Care (Leave and Pay) Bill will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave in addition to their statutory maternity or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

Employment (Allocation of Tips) Bill

This bill will make it unlawful for employers to withhold tips from staff.  A new statutory Code of Practice on how tips should be distributed will be developed, and in addition workers will gain a new right to request information on an employer’s tipping record to help them to bring a tribunal claim under the new rules.

Employment Relations (Flexible Working) Bill

This new legislation would:

• make flexible working requests a day one right for employees (thereby removing the current 26 weeks’ service requirement)
• allow employees to make two requests a year (currently only one request is possible)
• require employers to consult with the employee, before rejecting a request
• shorten the time employers have to reply to a request from three to two months
• remove the requirement for employees to set out the likely effects on the business of the change.

Workers (Predictable Terms and Conditions) Bill

This bill will give all employees and workers (including agency and zero hours workers) the right to formally request a more stable working pattern and will be available to those who:

• have worked for the employer for 26 weeks (not necessarily continuously)
• are on work patterns that lack certainty in the hours and time they work
• are on fixed term contracts under 12 months’ in duration.

Workers will be able to make two requests a year, however employers will be able to refuse requests on specific grounds, e.g. due to the additional costs involved or a lack of work at the times requested.  This reform is intended to rectify one-sided flexibility favouring employers to the detriment of workers.

Office of the Whistleblower

A Bill on whistleblowing could, if passed, repeal the current framework in the Public Interest Disclosure Act 1998 and introduce broader protection with a bigger range of penalties. The bill involves the creation of a new body, potentially called the Office of the Whistleblower, which would be given investigation powers and have the authority to order redress.

Auto-Enrolment Pension Changes 

There is an Automatic Enrolment Private Members Bill moving through Parliament which looks set to bring in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

Predictions are that this particular change will come in to effect either in April 2024, or at the earliest in October 2023.

And….

The government is also backing the Worker Protection (Amendment of Equality Act 2010) Bill currently passing through Parliament, which would cover the following:

• reintroducing employers’ liability for the harassment of their staff by third-parties (whether they are customers, clients, or suppliers). This liability was previously removed in 2013;
• requiring employers to proactively prevent the sexual harassment of their staff;
• allowing for a 25% uplift in any award in a successful sexual harassment tribunal claim where the employer failed to prevent the harassment occurring.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2022.

Gender pay gap reporting

For businesses in the private sector with a headcount of 250 or more, your ‘snapshot’  gender pay gap reporting is due to be published on or before 4^th April 2022.  The information about what you need to report can be found here.

There is currently speculation about the introduction of new ethnicity pay gap reporting, but there are no clear plans to introduce that requirement.

Payroll costs – National Minimum Wage rates

The cost of living increase is likely to be a key issue for many employers who will face increasing pressure from employees to increase wages.

Whilst there is no legal requirement to increase pay to address issues with increases in inflation rates, National Minimum Wage/living rates are going up on 1 April 2022 so if your pay is based on minimum wage rates, you will need to implement these changes:

Health and Social Care Levy – 6 April 2022

The UK is introducing a new social care levy  from 6 April 2022 to help fund health and social care. This will be collected via a 1.25% increase in National Insurance rates for employers and employees in 2022.

People above State Pension age will not be affected by the temporary increase to National Insurance contributions for the 2022 to 2023 tax year, but will be liable to pay the levy from April 2023.

Statutory pay rates

Family friendly leave

From 3 April 2022 Statutory Maternity, Adoption,  Paternity, Shared Parental and parental bereavement pay will increase to £156.66 per week.

Statutory Sick pay

On 6 April 2022 Statutory Sick Pay will increase to £99.35 per week.

Statutory redundancy payments

For anyone made redundant on or after 6^th April 2022, the statutory redundancy pay weekly pay rate increases to £571, therefore for anyone who leaves due to redundancy on or after 6^th April 2022 you will need to base their redundancy pay on this new weekly cap.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Right to work checks

Although the concept of right to work checks is not new, there are changes to be aware of which come in to effect from 6th April 2022.  Full guidance is here

Key changes include:

• implementation of a new Identity Document Validation Technology (IDVT) process,
• changes for those that hold a Biometric Residence Card, Biometric Residence Permit or Frontier Worker Permit.

Bank holidays – The Queen’s Jubilee

In 2022 there will be an additional Bank Holiday to celebrate the Queen’s Platinum Jubilee on Friday 3rd June. The usual late May bank holiday has moved to Thursday 2 June to give workers a four-day weekend.

Individual contracts of employment will dictate whether employees are entitled to take this additional day off, and how this day’s leave will be treated.  Employers should check the wording in contracts and communicate clearly to employees whether they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

As the Jubilee week is to all intents and purposes a 3-day week and is at school half-term in most places, employers should prepare for a large number of annual leave requests.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.

In a tough economic environment employers may conclude they need to reduce headcount and make some redundancies.

If that’s the case, there’s a statutory process to follow before making people redundant. It’s important to get the process right to avoid unnecessary disputes or Employment Tribunal claims for unfair dismissal.

Here are some key points to remember if you think you need to make redundancies.

Make sure it’s a genuine redundancy

Redundancy is about the role, not the person. The redundancy process should never be used to dismiss a specific employee in place of performance management and a disciplinary process. A redundancy is only genuine if it fits within one of the following descriptions:

• • the employer ceases to carry on the business in which the employee was employed,
  • the employer ceases to carry on that business in the place where the employee was employed,
  • the needs of the business for employees to carry out work of a particular kind cease or diminish, or
  • the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.

Preparation is key

Once you have established the reason for the redundancy of a role, prepare some notes for the consultation process. These notes should include key information you need to communicate:

• • why you need to make redundancies,
  • which jobs are at risk,
  • how employees will be selected for redundancy,
  • the number of people who could be involved,
  • how you plan to carry out redundancies,
  • how redundancy pay will be calculated and
  • details of any agency workers at the company

Fulfil your obligations

Establish the timeframes within which you need to consult and whether you need to consult a trade union, or elected representatives. If you plan to make more than 20 people redundant within 90 days you will need to do collective consultation, so it’s important to know your obligations.

Plan for the process

Prepare your notes and make sure you know the timeframes and consultation requirements. It can then be helpful to create a communication plan for the consultation process. The plan should include details of the consultation with potentially redundant employees as well as other team members who may be affected by the changes.

Make proposals

When the consultation is complete, a redundancy can be confirmed. True consultation involves listening to alternative ideas to avoid redundancies, considering any contractor or agency worker roles instead and redeployment opportunities within the company. It’s also important to ensure the affected employees fully understand the reasons for the consultation and what it means for them specifically. Prior to consultation being completed any redundancy plans should be presented as proposals, subject to consultation.

If you’re making large-scale redundancies, it can result in a long and complex process, but whether it affects one employee or 50, it’s still important to get it right and consider their rights and how the news will affect them. Good planning and communication is key.

We work with businesses during difficult times and help to take away the worries about getting it wrong, so if you’re business needs to make these difficult decisions, get in touch with Helpful HR.