Employment Law Update May 2015
Now that the dust has settled on the General Election, there is lots to consider in terms of the impact of the result on employment law. In this article we look at the new Government’s plans for the workplace.
Zero Hours Contracts
Although the most stringent restrictions to the use of zero hours contracts would have been put in place by a Labour government, employers still need to be aware that when the relevant section of the Small Business, Enterprise and Employment Act 2015 is introduced at some point in the future, exclusivity clauses will no longer be enforceable.
This is an issue that is here to stay, with ACAS planning the publication of further guidelines later in 2015.
We advise… that employers using zero hour’s contracts review the use of any exclusivity clauses and remove these from contracts of employment.
National Minimum Wage
The Conservative government supports an above-inflation rise in the National Minimum Wage, if approved by the Low Pay Commission and have committed to a NMW rate of £8 an hour by the end of 2020.
We advise… businesses to ensure that the current NMW rate is adhered to in the case of lower paid employees.
Equality and Pay
The government aims to promote gender equality and plans to require businesses employing more than 250 employees to publish the difference in average pay between their male and female employees.
As yet there is no indication of where this information is to be published, the consequences of any disparity and the level at which this is to be considered unacceptable.
This particular measure was legislated before Parliament dissolved in preparation for the election and is to be implemented by April 2016.
In addition there is a commitment to cap public sector redundancy pay at £95,000.
We advise… employers to review pay awarded to both genders in comparable roles and consider whether as a larger business, they would be happy for any pay gap to be published and consequently whether action is required to address any imbalance.
Trade Unions and Strike Action
Under their ‘Jobs for all’ commitment, the Conservatives intend to make changes to legislation covering industrial action, making strike action lawful only when at least half of those eligible to vote have done so. Within certain public, transport and emergency service sectors, the threshold will be raised so that 40% of eligible voters must vote in favour of strike action before it can go ahead.
There will also be a repeal of the current ban on the use of agency workers to cover employees involved in strike action. A time limit of three months is to be implemented on the mandate of each strike ballot and changes to picketing laws are also proposed.
Volunteering
Public sector organisations and employers with more than 250 employees are to give their staff the right to three days paid leave a year to participate in voluntary work – to be known as ‘volunteering leave.’
We advise… public sector and larger employers to plan a review or implementation of a volunteering policy.
European Convention on Human Rights
The Conservatives intend to repeal the Human Rights Act, instead introducing a British Bill of Rights, with the European Court of Human Rights becoming an advisory body only.
Employment Tribunal Reform
Subject to the outcome of the judicial review later in 2015, the government supports the retention of the fees system with employees paying between £160 and £950 to lodge a claim.
We advise… whilst a reform of the current Tribunal system did not feature in the Conservative manifesto, employers should still review policies, practices and procedures on a regular basis to ensure they remain appropriate and provide for minimum risk of claims.
The In/Out Debate
Finally, the government’s commitment to an EU referendum by the end of 2017 carries potential for massive reform of legislation if the UK leaves the EU. David Cameron doubtless faces a very difficult time in negotiating a deal for the UK, ahead of any referendum.
Whatever happens, the EU has had significant impact on employment rights in the UK and it will be very difficult to make changes to employment rights such as holiday entitlement, maternity protection and agency rights as UK workers are not likely to be willing to give up such employment protection.
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