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.

From 26^th October 2024, businesses will have to fulfil a new requirement to prevent sexual harassment in the workplace. This is due to the introduction of the Worker Protection (Amendment of Equality Act 2010) Act 2023. The EHRC guidance suggests this preventative duty extends to harassment of this kind by a third-party. This includes customers, clients, suppliers, visitors, members of the public – anyone who interacts with your staff at work. Essentially, employers potentially have vicarious liability for the acts of colleagues and third-parties in the workplace. That said the situation with regard to third parties is still relatively unclear from a legal perspective. The new Labour government have indicated that they intend to strengthen this new protection, so employers would do well to be on the front foot now, as there may be more to come.

What are employers expected to do?

Employers are expected to take ‘reasonable steps’ to prevent sexual harassment at work, although there is no definition of what those reasonable steps might be. The expectation is that they include actions that are practical, proportionate and tailored to the specific workplace. If employers can demonstrate that they took these reasonable steps, they might be able to successfully defend a claim of sexual harassment at work at a tribunal. Failure to do so could not only result in an uncapped compensation payment to the claimant, but also up to 25% uplift on compensation if an employer has breached the specific duty to prevent sexual harassment.

10 Reasonable steps to consider

1. Ensure your anti-harassment policies are up to date and reflect the new requirements. Make it clear what the Company’s expectations about behaviour in the workplace are. Consider creating a specific anti-sexual harassment policy and ensure this is regularly communicated to all staff, and third-parties.
2. Ensure that the ‘workplace’ is correctly defined in line with the Equality Act.  This extends to workplace social and off-site events, and interactions (both in person, in writing and on social media) that are connected to work.
3. Conduct a risk assessment of your workplace to identify where there is a risk of harassment. Ensure you include third-party risk, review the number of complaints received and the outcomes of those investigations.
4. Conduct regular anonymous staff surveys to get feedback on workplace culture including this specific area.  Or create an anonymous reporting system through the use of QR codes, publicised in discrete areas.
5. Ensure the process for raising a complaint is straightforward, that it’s clearly explained and easy to access.
6. Put up notices in staff areas, and anywhere your staff come in to contact with third parties.
7. Invest in up-to-date regular mandatory anti-harassment training. Use this to educate employees about acceptable behaviour, and what to do if they witness sexual harassment.
8. Invest in up-to-date regular mandatory manager training. Use this to educate your people managers about how to address issues and spot the early signs of harassment.
9. Ensure those who are responsible for investigating any complaints are trained and capable of doing so.
10. Ensure the senior team are aligned in taking a zero-tolerance approach to harassment. Make sure they are committed to creating and maintaining a culture that values diversity, inclusion and respect.

Consequences

If your employees do experience sexual harassment in the workplace, there are a number of different negative consequences.

As well as putting the business at risk of an employment tribunal claim (which is both costly and time-consuming), the consequences of sexual harassment in the ‘post #metoo era’ extend wider than this:

• Your reputation as a business may come under scrutiny. This may lead to potential lost business opportunities if investors, stakeholders, or potential customers or clients decide they don’t want to be associated with a business that has a problem with sexual harassment. Publicly listed companies have lost share value when issues of sexual harassment have been present.
• Your reputation as an employer will be detrimentally affected – not many people would seek to be employed by a company that has issues with sexual harassment in the workplace, and those already working for you will undoubtedly look for other opportunities. You are likely to find it hard to find and hang on to talent.
• The mental health of your employees is likely to be detrimentally affected, affecting productivity, absence and performance.
• The EHRC also have the ability to investigate and enforce the new requirements if an employer fails to comply with the requirement to prevent sexual harassment in the workplace. This process would also be extremely involved and time-consuming and further damage your reputation.

This change takes effect on 26^th October 2024, which means you need to have the ‘reasonable steps’ in place by this date in order to avoid a breach of the new duty to prevent sexual harassment in the workplace.

If you are concerned about what these changes mean for your business, Helpful HR can help, so get in touch.

In 2019 a Supreme Court ruling (Harpur Trust v Brazel) meant that permanent part-year workers, and irregular hours workers were entitled to 5.6 weeks’ holiday pay, based on their average weekly pay during the weeks they worked (disregarding any periods where no work was done). This meant that in theory, part-year workers would be disproportionately advantaged, when compared with their full-time colleagues.

Before the Conservatives left government in July 2024, they changed the statutory regulations, to allow for irregular hours or part-year workers to have their holiday paid to them on the basis of a 12.07% calculation of their pay received during the pay period. This calculation can be used during any holiday year which starts after 1st April 2024.

The 12.07% calculation is based on the statutory minimum amount of holiday. If contracts provide a more generous holiday allowance, then the percentage must be amended accordingly.

What qualifies as an ‘irregular hours worker’?

The new regulations define irregular hours workers as ‘wholly or mostly variable’ paid hours under the terms of their contract in each pay period. This could mean a casual or zero hours contract, or a contract which states their hours are variable, provided that the reality is that their working hours vary week to week.

What qualifies as a ‘part-year worker’?

A part-year worker is defined as a worker who is only required to work for part of the year, and there must be periods in the year of at least a week during which they are not required to work, and for which they are not paid. These workers may have fixed hours for the times they are working (unlike irregular hours workers).

Practicalities

The changes mean that in one pay period (for example a month, if paid monthly; a week if paid weekly) you can calculate holiday pay based on the relevant percentage calculation (12.07% for statutory minimum holiday) and pay this directly to the worker, provided it’s listed separately as ‘Holiday Pay’ in their payslip.  This is now referred to as ‘rolled-up holiday pay’, even though it’s not incorporated in to the worker’s hourly rate.

This means that those workers would not request and take their paid annual leave, as this payment covers their statutory entitlement to holiday, and is on record as having been paid in this way.

Employers can continue to use the current 52-week reference period to calculate holiday entitlement and pay, if the worker takes paid holiday, and the government have provided further guidance on this here.

Here are 2 worked examples:

Employee A is entitled to statutory holiday (5.6 weeks holiday per full year), and they are an irregular hours worker. The company holiday year started on 1st April 2024. Employee A is paid monthly.

In July, Employee A worked a total of 50 hours, on a normal pay rate of £15 per hour.  They also worked 8 hours of overtime on x1.5 their hourly rate. Therefore their pay for July is calculated as follows:

50 x £15 = £750

8 x £15 x 1.5 = £180

Employee A’s total pay for July is £930.

In order to calculate Employee A’s holiday pay, this would be 12.07% of their pay for that month. As they are entitled to statutory holiday, you would do the following calculation:

£930 x 12.07% = £112.21

The holiday pay that can therefore be processed for July 2024, with the employee’s normal pay would be £112.21

Employee B is entitled to contractual holiday which totals 6.4 weeks for a full year, based on a full-time entitlement. They are a part-year worker, and the holiday year started on 1st July 2024. Employee B is paid monthly.

In July the employee didn’t work at all. However they worked full-time hours during August, which totalled 165 hours, at a normal pay rate of £20 per hour.

Employee B’s pay for July is zero, therefore they would not be entitled to holiday pay for that month.

However in August their total pay was 165 x £20 = £3,300.

In order to calculate Employee B’s holiday pay, you first need to establish the correct percentage to use.  This is calculated as follows:

52 weeks – 6.4 weeks = 45.6.

6.4/45.6 = 14.04

Therefore the correct percentage holiday pay accrual for Employee B is 14.04%

To calculate their holiday pay for August you would therefore do the following calculation:

£3300 x 14.04% = £463.32

The holiday pay that can therefore be processed for August 2024, with the employee’s normal pay would be £463.32

Employers however should be mindful of the details of their worker’s contracts.  If they stipulate that the worker is entitled to paid leave, in order to change to rolled-up holiday pay, employers would need to seek the written agreement of the worker in order to make this change to their terms of employment.

If you’re not sure what the changes and new rules means for your staff, get in touch.

When you hire a new team member, there will usually be a probationary period. This is a time during which both parties can establish if hiring them was the right decision. It’s a fixed amount of time, so proactively managing probationary periods is important. If it applies, details of a probationary period must be included in employment contracts. Wording should include the duration, the right to extend, and areas of their performance and conduct which will be considered.

Many companies have rebranded the probationary period, using terms like ‘Introductory Period’ or ’90-day journey’. They mean the same thing; Was hiring the new joiner the right decision?

Probationary periods ensure that an employee’s expectations are managed. They understand that what they do during that time matters and can affect their ongoing employment.  If the end of a probationary period goes left unchecked, the default position is that they have successfully passed.  This may result in changes to their entitlements and notice period, and it’s more difficult to address those issues after that.

Areas to consider

When it comes to assessing whether the hiring decision, it shouldn’t just be about technical ability in their field of expertise. It’s about the behaviour they demonstrate, their understanding of the business or their desire and enthusiasm to learn and make a positive contribution. In an SME one person can make a big difference to the team dynamic and the success of the business. Therefore, it’s important that you use the probationary period to determine if you made the right decision. The probation period is also about the employee deciding if this is the right place for them. It’s important that you engage in two-way dialogue about how they’re getting on.  The probationary period provides an opportunity to ‘course correct’ if things doing seem to be going to plan, either for you, the team or the new hire.

Tips for managing a successful probation

Managers need to spend time proactively managing probationary periods. It should be expected that more management time will be spent on this person during that time. The time you spend is an investment which will hopefully lead to a direct return.

So what should managers be doing during their new hire’s probation?  Here are our top 10 tips:

1. Clear job information: Make sure all the relevant information is clearly communicated during the recruitment process. That way there is no ambiguity about the role and what it involves
2. Effective induction: Ensure you have an effective induction programme. This should include information about their job, the team, the business and the way it’s structured. It should also include where they fit in, the values of the company and how you expect employees to behave at work
3. Introductions to key people: Ensure the new hire is introduced to key people on day one or at least during their first week. That way they know where to go for support if they have questions. No-one can know everything from day one
4. Meet regularly: Meet with the new hire 1-1 regularly and frequently, and make sure it’s diarised and a written note is taken and shared with them in a timely way. In these meetings you can ensure they know what they should be doing. You can provide regular feedback about how it’s going, both from the perspective of their work, as well as their behaviour. For example if their work has been accurate, or you have noticed they have been late multiple times during their first week / month. Flag what you have noticed, ask how they feel it’s going and if there is anything they’re not sure about
5. Set SMART objectives: Set some agreed objectives for the first month, and / or overall for their first 3 or 6 months. Progression towards meeting the objectives should also become an area of feedback in your weekly meetings, and follow up on email with the key points
6. Be accessible and approachable: Have ad hoc informal catch-ups with the new hire on the ‘shop floor’. Ensure your new hire has the opportunity to ask any questions they may have
7. Flag issues and concerns: If there are issues, flag them sensitively, but honestly. Explain why it’s a problem, and what you expected instead, or better still, ask them how they could have avoided the issue
8. Timely feedback: Ensure your feedback is given in a timely way. If something serious is wrong, don’t wait for the next 1-1 meeting
9. Preparation for meetings: Provide feedback in a confidential setting away from colleagues to protect their dignity. Prepare feedback properly to ensure it’s objective and delivered thoughtfully
10. Act prior to the end of probation: Make sure you meet with the new joiner before the end of the official probationary period to confirm formally if they have passed their probation. Alternatively, probation can be extended if there are ongoing issues which need to be addressed. Equally if there are too many issues you may have to deliver the news that the probation has not been successful. (i.e. you give notice to terminate their employment)

As people managers it’s in your interests to do all you can to set this person up to succeed. This avoids unnecessary additional time and resource in sourcing a new hire twice in a short period of time. That said, sometimes things don’t work out. If that’s the case, dealing with it promptly and decisively will save time and money.

Recruitment can be expensive and time-consuming, so making sure your initial recruitment process was appropriate will help.  Read our previous blog here about recruitment if you want more tips for successful recruitment.

If you would like support managing probationary periods, or you have an issue with a new hire, get in touch.

In April 2020, it became a requirement for all employees to receive a ‘Written Statement of Employment Particulars’. This is a document which needs to be provided on or before their start date with their employer.  In addition, employees who joined their employer before 6^th April 2020 can ask for a Written Statement at any time. On receipt of a request, employers must provide it to the employee within one month of their request.

The legal requirement

With this change it became a requirement that the Written Statement included certain terms and conditions. It is no longer sufficient to rely on a basic offer letter confirming job title, salary and start date.  The terms and conditions that must be included in a written statement are as follows:

• the employer’s name
• the employee or worker’s name
• the start date
• the date that ‘continuous employment’ started
• job title, or a brief description of the job
• the employer’s address
• the normal places or addresses of work
• pay, including how often and when
• working hours and days, or if it’s variable
• holiday entitlement, including an explanation of how its calculated if the employee or worker leaves the employer
• the amount of sick leave and pay applicable
• any other paid leave
• any contractual benefits
• any non-contractual benefits
• the notice period either side must give when employment ends
• how long a temporary job will last
• any probation period, including its conditions and how long it is
• if the employee will work abroad, and any terms that apply
• what training that must be completed by the employee or worker, including training the employer does not pay for

As an employer, you need to have all these terms detailed in Written Statements you issue to new joiners. You need to quickly define your current practices and policies.  That way you will be ready for requests for a written statement from existing employees who started prior to 6^th April 2020, as well as new hires.

In addition, the law allows for other terms to be provided at a later date, within 2 months of the employee starting. These other terms relate to pension arrangements, collective agreements, non-compulsory training (if provided), and disciplinary rules.

Benefits of providing a Written Statement

As well as the legal requirement to provide details of these specific terms of employment, there are benefits for both parties in having these points clearly written down.  Both parties will know and understand what to expect from the other, and what their obligations are.  This avoids ambiguity and inconsistency, which helps to prevent unnecessary problems or employment issues.  Doing this may also prevent potential allegations of discrimination if employees are treated differently (whether inadvertently or not).  Employees will feel secure in their relationship with their employer, which is more likely to develop trust and loyalty.

If you fail to provide the relevant documentation to your employees within the timelines specified by law, the potential penalty would be between two and four weeks’ pay.

Benefits of a Contract of Employment

The requirement under law is for a Written Statement of Employment Particulars, as detailed above, however many employers opt for a full contract of employment for their employees.  This is because in a full employment contract you can include terms which protect the business interests, for example clauses around confidentiality, post-termination restrictions, intellectual property and conflict of interests.  Having everything included in one comprehensive document also reduces administration time for the business, and provides clarity for the employee.

It’s important that employers are on the front foot when it comes to providing employees with details of their terms and conditions of employment as there are clear timelines to meet and clear advantages to providing this information.

If you would like to ensure that you’re protecting your business interests, and are meeting your legal requirements to provide employees with details of their terms of their employment, 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.

Stephen Covey’s The 7 Habits of Highly Effective People® has been referenced over many years.  First published in 1989, it’s been reissued multiple times since then, and has been adapted / spun out in to targeted versions, for example focussing on teenagers, families, journals, workbooks and card decks.  He continued to release books up to a year before he passed away in 2012, leaving a legacy of effective leadership principles.

What’s it about?

Covey seems to have had a genuine wish to help others and lead by example by closely following the principles of the habits himself. He provides practical advice, which requires us to look inside ourselves.  Reading the habits, we may already find that we’re on the right track.

What are the 7 habits?

There’s much more to the habits in the book, however here is a flavour of the 7 habits:

Habit 1: Be Proactive®

Take responsibility for your life. This habit encourages us to move away from blaming external factors and responding to them in a reactive way. We should use proactive language; I will, I can etc.  and our energy should be focussed on things we can control.  The first step is to build awareness of where we expend our energy now, so we can develop into a more proactive approach.

Habit 2: Begin With the End in Mind®

We will not feel successful, if we achieve things which are not where we wanted to end up.  We need to focus on what we want, and how we want to live, and then use the 1^st Habit of proactivity to get there.

Habit 3: Put First Things First®

This is where the 1^st and 2^nd Habits come together, and we can make decisions about what we will and won’t do.  We don’t have to do everything, it’s about choosing proactively what you will do, and prioritising accordingly. These decisions will be made based on our purpose, values and role, with the end in mind.

Habit 4: Think Win-Win®

Be co-operative and collaborative.  It’s a mindset which means that we seek mutual benefit with our solutions.  Covey identifies 3 character traits; Integrity, Maturity and Abundance Mentality (believing there is plenty for everyone). It doesn’t have to be either / or, both parties can ‘win’. Further character traits identified are empathy, confidence, consideration, sensitivity and bravery, which all underpin real Maturity.

Habit 5: Seek First to Understand, Then to Be Understood®

Communication is key, but this Habit is more focussed on listening, and really understanding others.  We all want to get our point across, but in doing so we may not listen to the other person properly.  This means we may miss their meaning or make assumptions, based on our own point of view.

Habit 6: Synergize®

This is about teamwork, being openminded and finding new solutions. This is best done with multiple contributors who all bring different insights and experiences.  The principle of ‘the whole is greater than the sum of the parts’ is in play here.  Valuing differences is important to achieve synergy. It might feel uncomfortable initially, as there may be disagreements, but the outcome will be more interesting and successful.

Habit 7: Sharpen the Saw®

This means preserving and enhancing ourselves in 4 different areas of life: physical, social/emotional, mental and spiritual.  We need to grow in each of these areas, for example through healthy lifestyle choices, making social connections, reading, learning, spending time in the natural world, music and art. By growing in these areas we become more able to deal with challenges, grow and continue to build on the other 6 Habits.

Although a lot of focus of adopting the 7 Habits has been on implementing these principles in leadership and management, they can apply to all of us.  After all, the title of the book is simply to make us highly effective people, whether you’re a junior executive or business owner.  If you’re new to a leadership role, read one of our previous blogs to get some practical leadership tips.

The media has covered situations where individuals have been disciplined, or had offers of employment withdrawn, as a result of posts they put on social media.  This was because posts in question were deemed to be ‘unacceptable’ to their employer or potential employer.

But, the posts were made from personal accounts, so why did these organisations take this action?  Surely it’s none of their business what an individual posts on social media. Especially if the post was private or there was no mention of the organisation in their profile or the post?

When does it matter?

Even if a post is from a personal account, the key consideration is whether it can be linked to their employment.  Or if it could damage the organisation’s reputation.  This issue needs to be considered properly and fully before action is taken.  Of course a post by an employee or applicant may not put your organisation in a particularly positive light. But it’s important not to take a disproportionate view of the damage or potential damage to its reputation.  The facts should be considered carefully, including:

• The employee’s role and seniority
• The nature of the social media post
• Whether the damage to reputation is actual or potential and if it’s a genuine risk
• Whether the employee has received a previous warning for similar conduct
• Whether the employee expressed regret at their actions?
• Are there any other mitigating factors to consider?

Organisations should ensure clear information and training is given to employees about the importance of the corporate reputation and image. There should also be a clear policy about the organisation’s expectations about employees’ use of social media.  It’s also important to have clear policies on equality, diversity and inclusion and conduct training in this area.  That way the organisation can demonstrate the their stance in these areas, and therefore how the employee’s actions are a direct breach.  A clear disciplinary policy and procedure is also important, ensuring it includes the types of behaviour and conduct that will be regarded as serious, or gross misconduct.

Rights of the parties

Obviously, individuals have rights under the Human Rights Act 1998, and the GDPR Data Protection Act 2018, so monitoring social media needs to be done with care, to avoid breaching these rights.  It requires a very careful balancing act to make sure the rights of both parties are protected.  Not easy.

When it comes to monitoring social media, it’s always best to have a very clear policy about social media and data protection, privacy and monitoring.  Equally important is ensuring these policies are within the principle of fair, lawful and transparent processing of personal data.  Generally, the most usual grounds for monitoring this activity will be legitimate interests. But again, this needs to be balanced against the individual’s rights and freedoms.  If the social media account is private, and there was an expectation it would remain so, then potentially the individual’s rights would override the organisation’s legitimate interests in monitoring that activity.

The organisation would need to articulate the purpose of the monitoring. For example, if it were to prevent sexual harassment, or ‘hate speech’, this might provide a legitimate reason.  A stronger argument might be reputation protection of the business, and minimising vicarious liability for the acts of an individual.  If the individual doesn’t have a private account and states the name of their employer on their profile, a clear connection can be made. If the named organisation were seen to tolerate posts of a discriminatory nature the reputational damage would be difficult to deny.

How do you deal with it?

If an employee puts a post on social media that is contrary to their aim to eliminate discrimination and hate speech, or which detrimentally impacts the organisation’s reputation, it should be treated as any disciplinary would.  The disciplinary policy should be followed as with any disciplinary issue.  The investigation and consideration of all the facts and impact on the organisation should be thorough. Any investigation conducted should be undertaken by someone other than the employee’s manager, or the person who will make the ultimate disciplinary decision.  Any action you take must be done within the ACAS Code of Practice for disciplinary and grievances.  Regardless of the severity of the alleged offence, employers should not dismiss an employee without following a fair process.

If one of your employees has made social media posts of concern, and you’d like advice, get in touch.

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.

In the workplace, managers and colleagues give feedback to others as part of their normal management and team practices.  Feedback should be constructive, and it’s a valuable process, aimed at improving skills, communication, relationships and success (individual and organisational).

In a study by Christine Porath[1], she found that higher levels of feedback were associated with 89% greater thriving at work, 63% more engagement and 79% higher job satisfaction.  She also found that giving honest, careful feedback and creating a ‘feedback loop’, (where team members provided feedback to each other), created stronger connections, and better relationships at work.  Adding recognition and / or reward in to the mix lead to employees becoming happier and more engaged.

The good and the bad

Provided the feedback is truly constructive, there’s no such thing as ‘bad’ feedback as all feedback of this nature will be valuable.

But if that feedback is not constructive, or not delivered in an appropriate way, I think we can probably call it ‘bad’ feedback, as it will often have the opposite effect of what is desired. i.e., it resulted in a disengaged, demotivated employee, and ultimately damage their success and potentially that of the team.

How to give good feedback

For many years there was a well-known saying linked to giving feedback which was referred to as the ‘**** sandwich’ i.e., say something nice, say something negative and then distract the person with something positive again. It seems this doesn’t work because the ‘negative’ points get lost, with people, understandably, clinging to the positive messages.

Here are our top tips for preparing and providing good quality feedback.

Preparation:

• Be clear what you’re providing feedback about and consider what you want the outcome to be
• Allocate enough time to the feedback session and make sure it’s in a confidential setting without interruptions
• Be factual, specific, kind and objective – describe behaviour / actions / outcomes, not personality, attitude or character
• Provide the context and describe what you noticed.  E.g., “I noticed that your reports have been submitted 2-3 days late on a couple of occasions lately”
• Outline the impact and why it’s a problem
• Write down the key points you want to get across.

The meeting:

• Present your prepared observations
• Be mindful of your body language and tone.  Keep it calm and respectful
• Ask for their perspective of your observations
• Encourage them to explore alternatives – ways to improve next time
• Present feedback as a positive opportunity, not a threat, and include a balance of feedback (i.e., if some things went well, say so)
• Listen actively, show empathy and demonstrate you’re listening – paraphrase and reflect what you’ve heard
• Acknowledge their feelings
• Reaffirm that your intention is to offer feedback to help them improve their performance, and help them progress, develop, grow in their role and the organisation.

Feedback should be given as close to an issue arising to ensure it’s relevant, and to demonstrate that it’s important.  Don’t wait for your next scheduled monthly or quarterly 1-1 to share the feedback.

If you need to give difficult feedback to an employee and you’re not sure how, get in touch.

[1] Mastering Community: The Surprising Ways Coming Together Moves us from Surviving to Thriving by Christine Porath 2022