The new Growth and Skills Levy and Skills England

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The Government has announced the introduction of a new growth and skills levy to replace the current apprenticeship levy. With the implementation date as yet unknown, we consider what is known so far about the new levy alongside the recent announcement on Skills England, and the implications for employers.

What do we know about the new levy?

The growth and skills levy are likely to have a broader goal than the current apprenticeship levy. It’s focused on funding skills development across the board, not just apprenticeships, and it’s geared towards supporting economic growth by addressing a wider range of training needs in the workforce.

Speaking at the recent Labour annual conference, the Prime Minister said the “new apprenticeships will give young people a route in to careers in critical sectors, enabling them to earn a wage whilst developing skills”, adding “We’ve got to give businesses more flexibility to adapt to real training needs.”

As well as identifying that the focus for funding will be for those at the beginning of their careers, the announcement suggests that apprenticeships for the equivalent of a master’s degree will no longer be funded by the levy.

What are the key differences between the Apprenticeship levy and Growth and Skills levy?

With the apprenticeship levy, any money employers pay in can only be used for apprenticeship training and assessments, which must last at least 12 months. The funds are accessed through an online account, and if you don’t spend the money within two years, it expires. It’s strictly for apprenticeship-related training that leads to qualifications.

The growth and skills levy is more flexible. Employers could use the funds for different types of training, such as leadership courses, reskilling staff for new roles, or more specialised industry training. It will allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system. The aim is to support growth by filling various skill gaps, not just through apprenticeships.

Skills England

In related news, the Government launched Skills England in July to help identify skills needs. It has suggested there is a very real and pressing need for such a review, reporting that between 2017 and 2022 skills shortages in this country doubled to more than half a million, and now account for 36% of job vacancies.

Speaking about the purpose of Skills England, Education Secretary Bridget Phillipson said it will “jumpstart young people’s careers and galvanise local economies. It will bring businesses together with trade unions, mayors, universities, colleges and training providers to give us a complete picture of skills gaps nationwide, boost growth in all corners of the country and give people the opportunity to get on in life”.  In its first report, published on 24 September 2024, Skills England has assessed working skills across the country and future skills needs and gaps. It has analysed the spread of skills across regions and looked at jobs in high demand and skills needed in key sectors.

What’s next?

The Government has said further detail on the new levy will follow “in due course”.  Skills England says it will ‘engage with stakeholders’ in the autumn of 2024, via round tables and webinars, to test and refine its initial assessment of skills needed. It will also consult employers and other stakeholders about what training the growth and skills levy should fund.

As recruitment budgets come under pressure and skills gaps increase, some organisations could find the new levy provides opportunities for creative ways to manage those resource challenges. 

We will of course keep you up to date with developments. In the meantime, if you would like to discuss this topic further or any other HR matter, please contact Simon Martin in our team on 07384 813 076.

Baby Loss Awareness Week: what can employers do to support?

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In recognition of Baby Loss Awareness Week next month (9-15 October), we look at the statutory obligations and how workplaces can support staff affected by baby and pregnancy loss.

The inaugural baby loss awareness day was on October 15 2002 and was initiated by a group of parents. The annual campaign is now organized by the Baby Loss Awareness Alliance, which has a working party formed of six charities. These are:

  • Sands – saving babies lives. Supporting bereaved families
  • Bliss – for babies born premature or sick
  • The Ectopic Pregnancy Trust
  • The lullaby trust – safer sleep for babies, support for families
  • The Miscarriage Association; and
  • Tommy’s

Baby Loss Awareness Week is described by them as an opportunity:

  • To support bereaved parents and families and to unite with others across the world to commemorate their babies’ lives and lost pregnancies
  • To raise awareness about pregnancy and baby loss
  • To drive improvements in care and support for anyone affected and in the prevention of pregnancy and baby loss

How can you support this campaign?

Organisations can show their support for Baby Loss Awareness week in a number of ways. There are template posters and social media banners on the website, workplaces can hold an event or order pink and blue pins that staff can opt to wear. John Lewis is a big supporter of the campaign and in 2023 it lit up it’s flagship store in London in shades of pink and blue to mark the start of Baby Loss Awareness Week.

Support for your workforce

If you are reading this article and interested in supporting Baby Loss Awareness Week, then chances are you might also be wondering what support you are required to have in place and what opportunities there might be to enhance that.

Pregnancy and baby loss can occur in the form of miscarriage or stillbirth. A stillbirth happens when a baby is not born alive after 24 or more weeks of pregnancy, occurring in about 1 in every 200 births in England. If a baby dies before 24 weeks, this is considered a miscarriage of late foetal loss.

These distinctions are important when it comes to the statutory entitlements available to employees. When a baby is stillborn after 24 weeks or born alive at any stage but does not survive (referred to as neonatal death), all legal rights related to childbirth apply. This includes entitlement to maternity leave.

  • Maternity leave begins the day after the birth if it hasn’t started already.
  • Employees can return to work before the end of maternity leave by giving eight weeks’ notice. An employer may accept a shorter notice period, but employees cannot return during the first two weeks after the birth due to compulsory maternity leave regulations.
  • Both parents may also be eligible for statutory parental bereavement leave and pay in cases of stillbirth or neonatal death, in addition to maternity and paternity leave.

If a miscarriage occurs within the first 24 weeks of pregnancy, it is not legally classified as childbirth. As a result, parents are not entitled to statutory maternity, paternity, or parental bereavement leave. However, any necessary leave can be treated as pregnancy-related sickness under standard sickness policies.

Opportunities to offer additional support

In recognition of the challenge any form of baby loss can have on affected staff, some employers choose to offer additional support to any statutory entitlements. This can include a period of paid leave and support in cases of pregnancy loss at any stage. Some employers have taken a more proactive approach and developed specific policies covering miscarriage, stillbirth, neonatal death, unsuccessful fertility treatments, and abortion.

These polices can cover things like what an employee should do if they suffer a miscarriage whilst at work, signpost employees to internal support systems such as an Employee Assistance Programme (EAP) or a pregnancy or baby loss champion, if there is one, to explain entitlements to leave and pay. Recognising that baby loss can be a very individual experience, some employers choose to involve their staff in the development of any such policies, to ensure the support offered is relevant and meaningful for all staff. Taking this approach can really help to demonstrate an organisation’s commitment to supporting employees and provide a clear framework and reference point to help everyone during what is likely to be a very distressing time for the individuals affected.

Baby Loss Awareness week is an opportunity to actively showcase your support with communication campaigns and events. As with many sensitive topics, creating the space for discussion is often the starting point and can facilitate opportunities for further engagement. But most of all, a genuinely compassionate, supportive and thoughtful approach is likely to be hugely appreciated and give individuals one less thing to worry about as they recover from their loss.

If you would like any support or advice on this topic, please contact Sarah Martin in our team on 07799 136 091.

Happiness at work: a key ingredient for productivity, creativity, and overall organisational success

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In the month when we celebrated International Happiness at Work (23 – 27 September), we consider the rationale behind prioritising ’employee happiness’ and suggest actions employers can take to bring it to life in their workplaces.

Why is happiness at work important?

Research has shown that employees who are happy and feel a sense of wellbeing at work tend to be more productive, take fewer sick days, and contribute to a more positive and collaborative work environment. One such piece of research by Oxford University Saïd Business School found a conclusive link between happiness and productivity. In their research of call centre staff, they found that happy employees not only worked faster, making more calls per hour, but also achieved 13% higher sales than their unhappy colleagues. The CIPD and the Harvard Business Review agree and also point to the link between staff happiness and retention and engagement.

The call to action

Acknowledging the importance of happiness at work on its own is not enough. Employers need to take actionable steps to create a more positive and fulfilling working environment. Here are some ways your organisation can make happiness a priority:

  1. Organise Wellbeing Workshops: Host sessions focused on mindfulness, stress management, and work-life balance. Providing employees with tools and techniques to manage their wellbeing can make a significant difference in their daily work experience.
  2. Encourage Open Communication: Create an open forum where employees can share their thoughts and suggestions on how to improve their working environment. You might use online engagement tools, suggestions boxes or just talk to your staff. Whichever mechanisms you choose, listening to and importantly, acting on employee feedback can enhance their sense of belonging and satisfaction.
  3. Recognise and Celebrate Achievements: Recognise and celebrate the achievements of your team members. You might use formal awards, shout-outs, or simple in-person acknowledgments – celebrating success fosters a positive and motivated atmosphere.
  4. Promote Work-Life Balance: As remote and hybrid work models become more prevalent, it’s easier than ever for the lines between work and home life to become blurred. Promote flexible working arrangements or opportunities for additional time off. Encourage positive working practices at all levels to set boundaries, enabling staff to switch off after work hours. Supporting employees in achieving a better work-life balance can reduce burnout and increase overall happiness.
  5. Foster Team Building: Team relationships play a crucial role in creating a happy, productive workforce. Whatever team-building activities you plan, make sure they are both enjoyable and inclusive. Building strong relationships can create a more collaborative, innovative and supportive team. Strong team bonds can also lead to lower employee turnover.
  6. Offer Wellness Initiatives: Consider introducing wellness programmes such as fitness challenges, healthy eating options, or mental health resources. Investing in employee wellbeing demonstrates a commitment to happiness and health.

While International Week of Happiness at Work shines a spotlight on employee wellbeing, creating a culture of happiness and support should be an ongoing effort. Use it as an opportunity to reassess your organisation’s approach to employee happiness and consider if there are ways you can enhance that offering, to embed a culture of joy and wellbeing into the fabric of your organisation. By focusing on wellbeing initiatives, open communication, work-life balance, team building and recognition, you can create a culture where employees feel happy, valued, and motivated to succeed, for themselves and for your organisation.

For specialist advice on how you can create and sustain a positive workplace culture, contact Megan Britz in our team on 07468 698957.

Positive Discrimination – what employers need to know

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The recent case of Turner-Robson and others v Chief Constable of Thames Valley Police highlighted the dangers of unlawful positive discrimination in the workplace.

Diversity and inclusion are critical for thriving workplaces, benefiting employees and employers alike. A diverse workforce fosters innovation, broadens perspectives, and enhances decision-making. However, achieving this diversity remains a challenge in many sectors. The Equality Act 2010, includes provisions for ‘positive action’ to help address these imbalances.

Positive Action versus Positive Discrimination

Positive action is distinct from positive discrimination, which remains unlawful in England and Wales. While positive action aims to level the playing field by addressing barriers faced by underrepresented groups, positive discrimination would for example involve favouring a less qualified candidate solely because they belong to a protected group. Positive action ensures fairness by giving all candidates an equal opportunity to succeed.

What does the law allow?

The Equality Act 2010 allows for proportionate positive action for groups of people who share a ‘protected characteristic’ to reduce disadvantage, meet different needs and increase participation.

Within the Act, there are two forms of positive action:

  1. General Positive Action (Section 158): This provision allows employers to implement measures to address disadvantages or low participation rates among certain groups. This can include offering training programmes or development initiatives, and running direct communication campaigns aimed at attracting or supporting these groups.
  2. Tie-break Positive Action (Section 159): When two candidates are equally qualified, this provision allows an employer to favour a candidate from a disadvantaged or underrepresented group if they believe that doing so will encourage diversity within their workforce. However, this must be proportionate and must not be automatic (i.e. there should not be a policy to do so). It can only be applied when the candidates are objectively assessed as being equally qualified for the role.

What do you need to consider before implementing Positive Action

Positive action should be proportionate, targeted action to alleviate a disadvantage. There are some key steps you should follow which will help you create a successful positive action programme:

  • Firstly, consider what evidence you have of the disadvantage, particular need, or low participation among some groups and then look at identifying the root cause of this
  • The next step is to identify what you are trying to achieve and the aims of any action
  • Once you understand your aims, consider what measures you can implement to achieve these
  • Regularly review progress against those measures to assess whether the programme is still proportionate
  • Finally, don’t forget to speak to your employees about the measures, employee input will not only help define any programme it will also help them to understand any new initiative

What pitfalls do you need to avoid when considering positive action

Remember that positive action must be proportionate, or it could result in a legal challenge.  To avoid this, employers should:

  • Have some evidence to back-up the assertion that they ‘reasonably think’ there is a disadvantage. The evidence does not need to be extensive but should be sufficient to support the decision to implement any programme. 
  • Use targets not quotas to meet recruitment needs. Quotas are mandatory and could lead to you making appointments or promotions based solely on a persons protected characteristic and not on merit. Instead, set targets which are more flexible and will allow you to continue to appoint the best candidate.

Examples of Positive Action

There are several things that you can do to increase the diversity in your workforce including recruitment, promotion and retention of existing staff:

  • Targeted advertising of vacancies to increase the participation from underrepresented groups in your workplace
  • Increasing the number of underrepresented groups in senior management by offering mentoring opportunities to employees from that group
  • Targeting work experience for underrepresented groups
  • Creating staff groups for employees who share protected characteristics
  • Appointing a candidate from an underrepresented group in a tie-break situation

What else can I do?

You can also take more general action to increase diversity in your workplace. Not all action you take will necessarily fall within positive action under the Act, if it does not have a negative impact on another group with a different protected characteristic. Examples of action you can take might include:

  • Targeting adverts in publications aimed at underrepresented groups whilst at the same time advertising the role more generally
  • Ensuring that your recruitment is inclusive and any job adverts that you create do not use outdated stereotypical language that may deter applicants from certain groups
  • Consider using ‘blind applications’ for recruitment avoiding the possibility of bias in the early stages of recruitment

Don’t forget that not all underrepresented groups share a protected characteristic, you may also wish to consider the socio-economic background of your workforce and whether there are measures that could also be taken to increase diversity in this area. You should still be mindful of the impact of any such programmes on people who share a protected characteristic.

For further information on this topic or to discuss how you can implement positive action in your workplace, please contact Lisa Reynolds in our team on 07771 316 123.

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Labour’s plans to make work pay: progress so far

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The ongoing debate around the proposed changes to UK employment laws, promised as part of Labour’s election campaign has left many employers in a state of uncertainty, preparing for potential shifts that could significantly impact their operations.

The Government’s proposals—while not yet law—signal an increasing emphasis on worker rights and greater regulation of employment practices. For employers, these changes could bring both opportunities and challenges, depending on how they manage the adjustments. Labour’s manifesto included a statement that legislation would be introduced in Parliament within 100 days, although it acknowledged that some of the proposals will take longer, such as the plan to introduce a single workers status and a review of parental leave. If the government sticks to its 100-day time limit, a draft Employment Bill will be presented to Parliament by 12 October 2024.  So with the clock ticking, what do we know so far?

Consultation

The Deputy Prime Minister, Angela Rayner MP and Business Secretary, Jonathan Reynolds MP have been meeting with senior business leaders of major employers including John Lewis, Octopus, BT, McDonald’s and Sainsbury’s, as part of the government’s intention to consult on its  plans. It has been reported that the atmosphere during these discussions has been constructive and friendly, with the emphasis on Ms Rayner and Mr Reynolds explaining what they have planned, and listening to the concerns of employers.  For many it is still the detail of what those reforms will look like that remains a concern. 


Protection from unfair dismissal ‘day one’ right

On 19 September 2024, it was reported by the Financial Times that, in connection with Labour’s pledge to provide protection from unfair dismissal as a “day one” right, employers will be able to put new employees on probation for up to six months. But it seems even the government are in disagreement over how far reforms should go, with earlier reports referring to a divergence of view between the Deputy Prime Minister, who wished to see a brief probationary period (at most) and the Business Secretary, who favoured a longer period of up to nine months. Most recent reports are that employers will be able to use six month probationary periods.

In proposing day one unfair dismissal rights, the Government previously stated that it would be possible for employers to fairly dismiss new hires during a probationary period “with fair and transparent rules and processes”. There is currently no detail on what these rules and processes will be or how they will be expected to operate.

Predictable working pattern

As part of its pledge to end ‘one sided flexibility’, the Workers (Predictable Terms and Conditions) Act 2023 (W(PTC)A), which was expected to come into force in September, sought to address this issue by providing a statutory right for workers and agency workers to request a predictable working pattern. However, the Department for Business and Trade (DBT) confirmed that the W(PTC)A has been dropped and will no longer come into force. Instead, the government has said it will introduce a new right to a contract that reflects the number of hours regularly worked as part of their agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.  The details of this are yet to be confirmed.

Changes to the remit of the Low Pay Commission (LPC)

Previously, when setting national minimum wage (NMW) rates, the LPC would take into account the impact on business, competitiveness, the labour market and the wider economy. On 30 July, the government changed this to also take into account the cost of living and expected inflation up to March 2026. The LPC was also tasked with reducing the difference between the National Living Wage and the NMW for the 18 to 20 age band, with the plan to eventually remove the 18-20 band altogether. These are the first steps on the way to deliver the government’s promise of a “genuine living wage for working people” and eventually, a single rate of pay without age bands.

Draft Equality (Race and Disability) Bill

This Bill, which was announced in the King’s Speech, will introduce mandatory ethnicity pay reporting for employers with 250 or more employees and will make it easier for minorities and disabled people to make equal pay claims. This is likely to mirror existing equal pay and gender pay gap reporting provisions in the Equality Act 2010.  Detail of what will be included is yet to be seen as the Bill has yet to be laid before Parliament.

Preparing for the Future

There is much still much detail yet to be confirmed so while the future of these proposed UK employment changes remains uncertain, employers would do well to prepare for a more regulated and worker-centric environment. By adopting a proactive stance and staying informed, businesses can adapt to these potential shifts while still maintaining the flexibility they need to thrive in an ever-evolving economy.

For further information on this topic or any other HR matter, please contact Sue Meehan Boyes in our team on 07384 468 797.

Enhancing employee wellbeing: Practical steps for employers

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Every July, Samaritans run an awareness campaign. This year’s event was held on 24 July, so it is an important month for thinking about mental health. The Samaritans Foundation, established in the UK in 1953,  currently respond to a call for help every ten seconds.

Mental health issues have a significant impact on both individuals and organisations. According to a 2024 Parliamentary briefing, one in six adults in the UK experiences a ‘common mental disorder’ like depression or anxiety each week. We know from discussions with our clients the importance they place on supporting staff wellbeing. There is an increasing understanding of the importance of mental and physical health and the impact that all life’s challenges can have on employees’ overall wellbeing.

Our clients tell us that ensuring their staff feel valued, supported, and healthy is not just the ‘right thing’ to do, but also crucial for organisational performance and growth. However, many find it challenging to identify and implement practical and effective measures to support mental health in the workplace.

Building a supportive culture

Creating a genuinely supportive work environment is the cornerstone for employee wellbeing. Employers can build a supportive culture by encouraging open communication, recognising and appreciating employees, and actively working to create an inclusive environment. Regular check-ins and surveys can help gauge employee satisfaction and identify areas for improvement.

Formal recognition schemes are a great way to celebrate staff efforts, not forgetting the power of more informal ‘shout outs’ in team meetings or group chats for a “job well done”. Fostering an inclusive environment where diversity is celebrated will lead to all employees feeling valued and respected.

Promote work-life balance

Work-life balance is crucial for maintaining employee wellbeing. This can be challenging for employers, but open and constructive conversations with employees can lead to positive results for all parties. Employers can promote work-life balance by offering flexible working hours and remote working options, while still ensuring business objectives can be delivered. These can help employees reduce stress and improve job satisfaction. Additionally, they boost productivity and improve retention. Employers should encourage employees to disconnect from work during their time off, with managers leading by example by setting clear boundaries around working time and annual leave.

Mental health support

Employers can support mental health by offering access to confidential counselling and services through Employee Assistance Programmes, a cost-effective option providing immediate access to support. Mental health training for designated staff helps to identify mental health issues and signpost support. If possible, allowing employees to take days off specifically for mental health can reduce problems, and improve employees’ confidence that the organisation genuinely supports their mental health.

Physical health initiatives

Employers can offer a range of initiatives to support physical health, including subsidised gym memberships and wellness challenges. A healthy work environment, with ergonomic furniture, healthy snacks, and promoting regular breaks will have the additional benefit of helping to reduce many common causes of sickness absence, and some employers enhance this by offering on-site flu vaccinations or regular health check-ups.

Professional development and financial wellbeing

These are not areas that might typically be the first things you might consider when looking at supporting wellbeing, but providing opportunities for growth and development can enhance job satisfaction and a sense of belonging. Possible initiatives include training and development programmes, structured career pathways, and mentoring schemes.

Support for financial wellbeing can include regular benchmarked compensation reviews. Offering workshops or resources on financial planning, budgeting, and retirement planning could also be beneficial., and if your organisation’s resources allow, providing comprehensive benefits packages that include health insurance, retirement plans, and other perks.

By implementing these practical steps, employers can significantly enhance the wellbeing of their employees. A happy and healthy workforce is not just beneficial for employees but is also essential for business performance and growth, with benefits across the whole employee lifecycle – better recruitment outcomes, higher productivity, reduced absence rates, and increased retention rates. And who doesn’t want to work in a happier environment?

For specialist support on this topic or to discuss any other HR matter, please contact Andrew Miles in our team on 07468 698 975.

New duty to prevent sexual harassment in the workplace

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In today’s rapidly evolving work environment, creating a safe and respectful working environment is more crucial than ever.

Pending any changes following the general election, the Worker Protection (Amendment of Equality Act 2010) Act will come into effect on 26 October 2024, strengthening protections against sexual harassment for workers. In anticipation of this, the EHRC has launched a consultation to update its technical guidance on the new duty, with the consultation period ending on 6 August 2024. We examine the upcoming enhancements and suggest how employers can prepare for compliance in the months ahead.

Understanding the new duty

This new law will impose a duty for employers to take ‘reasonable steps’ to prevent sexual harassment. Tribunals will have the power to increase compensation by up to 25% if there is a successful sexual harassment claim and the employer has breached this duty. Employers are required to adopt a proactive approach, addressing potential issues before they arise rather than reacting to incidents after they occur. Compliance with this law is not just about avoiding legal repercussions; it’s about fostering a culture of respect and inclusion, which can enhance employee satisfaction and productivity.

However, not everyone believes the new duty has gone far enough. They point out that the requirement for employers to take ‘reasonable steps’ falls short of ‘all reasonable steps’ and the omission of an express duty to protect workers against harassment by third parties. The Chartered Institute for Personnel and Development (CIPD) has also voiced concerns regarding the efficacy of the new duty but acknowledges the importance of this legal change in building awareness and encouraging compliance.

Key steps

In preparation for the new duty, there are some key steps employers can take to ensure compliance.

  • Staff listening exercise: Conduct a feedback activity to capture common themes, experiences, and to help identify areas of focus.
  • Risk assessment: Where the organisation identifies areas of risk and plans how these will be mitigated – this will help inform the “reasonable steps” to be taken.
  • Build awareness: The first step is to increase awareness regarding what constitutes sexual harassment and educate their workforce. Few employees will appreciate that harassment can include unwanted conduct related to a protected characteristic, creating an intimidating, hostile, degrading, humiliating or offensive environment. Even fewer will be aware that sexual harassment specifically involves unwanted conduct of a sexual nature with that impact. Regular training sessions should be provided to all staff which should include how to raise a concern and how sexual harassment will be addressed.
  • Organisational and Cultural Change: Senior leaders must act as role models for inclusive values and behaviours. Their influence as ambassadors for the organisation both internally and externally is crucial in fostering a respectful culture of both physical and psychological safety.
  • Develop your Policy: While policies alone will never suffice to effect cultural change, it is useful to have a clear written framework defining what constitutes sexual harassment and making clear how sexual harassment will be addressed.
  • Upskill your managers: Specific training for managers on how to tackle sexual harassment should be provided, including how to support any team members who are impacted.
  • Identify and promote your reporting channels: Confidential and accessible routes to report concerns relating to sexual harassment should be widely advertised. The organisation should always ensure they are clear that sexual harassment is unacceptable, and any concerns will be treated seriously and with sensitivity.
  • Timely Investigation: Employers should investigate sexual harassment claims thoroughly and in a timely manner. We recommend investigations should be completed by someone appropriately trained, without direct connection to those involved. Depending on the circumstances, appointing an external independent investigator can be beneficial to ensure impartiality.  
  • Support: Providing support to those impacted is critical. This support can include counselling support, adjustments to work arrangements, or temporary leave if necessary.
  • Review your progress: Monitoring gender diversity, complaints, as well as seeking input on the wider experiences of your teams via engagement exercises can help to shine a light on the impact of any steps taken to prevent sexual harassment. You should regularly analyse these sources of information and take action on any learning.

The new duty to take reasonable steps to prevent sexual harassment in the workplace provides an opportunity for employers to reflect upon their organisational culture. Legislation alone will not create change; it will be up to individual employers to assess their starting point and take proactive steps to improve their current approach to the prevention of sexual harassment in the workplace.

If you would like any support relating to the new duty to prevent sexual harassment or in relation to an individual complaint, please contact Kathryn Chidzey-Jones in our team on 07881 092524.

What we have learned from the King’s Speech?

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The Government announced an Employment Rights Bill in the King’s Speech on 17 July, aiming to “ban exploitative practices and enhance employment rights”.

The Bill, reflecting Labour’s pre-election manifesto and their ‘New Deal for Working People’, will be introduced within the first 100 days of the new parliament. The government has described the Bill as “the biggest upgrade to workers’ rights in a generation”.

Headlines of the proposed Employment Rights Bill

  • Day-One Rights: Immediate rights to parental leave, sick pay, and protection from unfair dismissal (with provision for probationary periods).
  • Statutory Sick Pay (SSP): Removing the lower earnings limit and making SSP available to all workers from day one of their sickness absence.
  • Flexible Working: Making flexible working the default from day one for all workers, putting the onus on employers to accommodate flexible working “as far as is reasonable”.
  • Ban on “exploitative” Zero-Hour Contracts: Ensuring workers have contracts that match their regular hours with reasonable shift change notices, ending “one-sided flexibility.”
  • End Fire and Rehire: Reforming the law to provide effective remedies and replacing the previous statutory code with a strengthened version.
  • Increased Protection for New Mothers: Making it unlawful to dismiss a woman within six months of returning to work after having a baby, except in specific circumstances.
  • Fair Work Agency: Establishing a new body to monitor and enforce workplace rights.
  • Fair Pay Agreement: Introducing this in the adult social care sector, with potential expansion to other sectors.
  • School Support Staff Negotiating Body: To reinstate the SSSNB to agree national terms and conditions, career progression, and pay rates for school staff.
  • Trade Union Activity: Removing “unnecessary” restrictions, including repealing the Strikes (Minimum Service Levels) Act, to promote good faith negotiation.
  • Statutory Recognition: Simplifying the process to ensure workers can access unions at their workplaces.

Additional proposals

  • Changes to the living wage: While no detail is currently available, in the briefing notes to the King’s Speech, the government has reiterated its commitment to updating the living wage to accommodate for increases in the cost of living.  The government has indicated that this will include the removal of the current age bands.
  • Skills England Bill: This bill aims to simplify the skills system in England and Wales, transferring the work of the Institute for Apprenticeships and Technical Education to Skills England, and renaming the apprenticeship levy to the Growth and Skills Levy. The intention is to streamline and refocus the skills system, prioritising development in the workplace.
  • Equality (Race and Disability) Bill: This Bill intends to introduce mandatory ethnicity and disability pay gap reporting for employers with over 250 employees. This will echo the current gender pay reporting and equal pay legislation.

Conclusion

The Chartered Institute of Personnel and Development (CIPD) has welcomed the proposals from the new Government, emphasising the need for “thorough consultation with employers, and potentially compromise in places”.  We echo this sentiment, particularly the need to engage with employers to ensure any changes have a positive impact on workplace practices and employment opportunities. The proposals are currently light on detail and we are sure that, as we learn more over the coming months, we will be able to comment further on how employers might wish to navigate these potentially transformative changes.

For further information on this topic, please contact Kathryn Chidzey-Jones in our team on 07881 092524.

Forthcoming changes to Tips and Gratuities: What you need to know

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The UK hospitality and arts sectors are bracing for significant legislative changes regarding tips and gratuities, set to take effect from 1 October 2024.

Understanding the upcoming changes and preparing your organisation accordingly is paramount. This article outlines the key aspects of the new legislation, its impact on your workforce, and the steps you need to take now to ensure compliance.

Overview of the new law

The Employment (Allocation of Tips) Act 2023 requires employers to distribute all ‘qualifying’ tips, gratuities and discretionary service charges to their employees without any deductions. Qualifying tips can include those paid via credit/debit card or other electronic means. The new Act will also apply to cash tips, where the tips are deemed to be under the employer’s control – for example, where there is a policy to pool or collect tips. The legislation will also potentially capture tipping ‘apps’, which are becoming more commonplace, typically embedded in systems when you order and pay via a phone or device at the table. Care must be taken if the app/platform automatically deducts a proportion of the sum, as the legislation requires all qualifying tips to be allocated.

The goal is to ensure that employees receive the full benefit of the tips intended for them by customers, promoting fairness and transparency.

Key Changes

  1. Full distribution of tips: Employers are required to pass on 100% of tips to employees. Previously, it was common for businesses to retain a portion to cover administrative costs or distribute tips through a discretionary service charge.
  2. Fair and transparent allocation: The Act demands a fair allocation method. Employers must develop a written policy on how tips are distributed and make it accessible to all employees.
  3. Record-keeping requirements: Detailed records of tips received and how they are distributed must be maintained for at least three years. Employees have the right to request these records to ensure transparency.

Who will be impacted?

This legislation impacts all employers and many employees within the hospitality and arts sectors, including:

  • Restaurants and cafes: Front-of-house staff such as waiters, bartenders, and hosts.
  • Hotels: Housekeeping, concierge, and other customer-facing roles.
  • Arts venues: Employees in theatres, museums, galleries, and other cultural institutions where tipping is customary.
  • Catering and events: Staff involved

Preparing for implementation

Organisations need to take proactive steps to ensure they are ready for these changes by the October 2024 deadline. Here’s what you need to do:

  1. Develop a ‘Tips Policy’: Create a clear and comprehensive policy outlining how tips will be distributed. This policy should detail the allocation method, timelines, and any points of contact for employees with questions or concerns. Consider whether ‘fair allocation’ in your organisation extends to managers, head office, kitchen staff or other back-of-house staff too. A prudent employer may opt to consult staff when developing the policy, as this is likely to reduce subsequent challenges as to the fairness of any allocations made.
  2. Educate and train staff: Inform all employees about the new legislation and how it affects them. Training sessions can help ensure everyone understands the policy and their rights under the new law.
  3. Update payroll systems: Work with your finance and payroll departments to update systems to handle the distribution of tips and service charges in compliance with the new requirements.
  4. Enhance record-keeping practices: Implement robust record-keeping practices to track the receipt and distribution of tips. Ensure these records are readily accessible for employees and comply with the three-year retention requirement.
  5. Communicate with customers: Consider informing your customers about how tips and service charges are distributed to ensure transparency and manage their expectations.
  6. Review contracts and agreements: Examine any existing employment contracts or agreements to ensure they align with the new requirements. Make necessary amendments to reflect the changes in tip distribution.

The forthcoming changes to tips and gratuities legislation in the UK represent a significant shift towards greater fairness and transparency for employees in the hospitality and arts sectors. By taking the necessary steps now, to prepare, HR professionals can ensure their organisations are compliant and continue to foster a positive and equitable working environment. This can also be an opportunity to reinforce trust and satisfaction among your staff, which can ultimately lead to improved service and customer experience.

If you would like help to ensure you are ready for the October implementation deadline, or any other HR concerns, please contact Jo Bradbury in our NQHR team, on 07570 372118.

Navigating HR processes for employees with hidden disabilities

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Employers are well versed on their obligations to provide an inclusive and supportive workplace for disabled employees. But not all disabilities are visible and recent tribunal cases have highlighted the need for employers to take a more careful approach to employees with hidden disabilities.

Some conditions are not immediately visible but can significantly affect an individual’s job performance. Hidden disabilities include a wide array of conditions:

  • Mental health disorders: depression, anxiety, bipolar disorder
  • Chronic illnesses: diabetes, fibromyalgia
  • Neurological disorders: epilepsy, multiple sclerosis
  • Neurodiversity: ADHD (attention deficit hyperactivity disorder), ASD (autism spectrum disorder), dyslexia, dyspraxia or dyscalculia

These conditions can profoundly impact an individual’s work life, often requiring specific accommodations to enable them to perform effectively.

Protection for individuals with disabilities

The Equality Act 2010 provides robust protection and key provisions include:

  • Reasonable adjustments: Employers are required to make reasonable adjustments to the workplace or work processes to accommodate employees with disabilities. Adjustments might include modified equipment, flexible working hours, or changes to job duties
  • Prohibition of discrimination: The Act outlaws direct and indirect discrimination, discrimination arising from disability, harassment, and victimisation based on disability
  • Confidentiality and disclosure: While employees are not required

The effect in the workplace

Hidden disabilities can often appear as performance or conduct issues, especially when neither the employer, manager, nor the employee understands how an underlying condition is affecting the employee’s ability to perform their duties and interact with colleagues effectively.

Some examples might be:

  • Attendance and tardiness: An employee with a chronic illness, such as fibromyalgia or diabetes, might have unpredictable flare-ups that cause frequent absences or lateness. Mental health conditions like depression or anxiety can lead to difficulties in maintaining consistent attendance.
  • Communication or social interaction: Employees with autism spectrum disorder (ASD) or social anxiety may struggle with social interactions, potentially coming across as uncooperative or rude.  Dyslexia or other learning disabilities might result in misunderstandings or miscommunications.
  • Poor or unexplained behaviour: Anxiety or panic disorders can result in sudden, unexplained departures from meetings or tasks, which might be seen as unprofessional.  Sensory processing disorders can lead to difficulties in environments with specific stimuli, such as bright lights or loud noises, which might be mistaken for failure to comply with a reasonable instruction.
  • Poor performance: Mental health conditions, such as depression, can cause fluctuations in an employee’s mood and energy levels, leading to inconsistent work quality. Attention deficit hyperactivity disorder (ADHD) can affect an employee’s ability to focus, follow detailed instructions, or manage time effectively.

Act sensitively

It is important to try and approach potential misconduct or performance issues in these circumstances in a supportive and sensitive manner. While employees are not required to disclose their disabilities, your workplace should be an inclusive environment where they feel safe to disclose a disability in the knowledge that they will be supported.

Having a private, respectful conversation with the employee to understand any underlying issues that might be affecting their behaviour could resolve issues at an early stage. It’s an excellent opportunity to discuss if there is any support or adjustments that could be made to mitigate the impact on their performance.

Formal processes

You should consider alternatives to a formal process to avoid potential allegations of disability discrimination. However, we recognise that sometimes a formal process is unavoidable. In such circumstances, carefully explore whether there any barriers to the individual participating in the formal process and what adjustments could be made.

Reasonable adjustments could include: An employee with dyslexia may need more time to consider documents prior to any meeting or hearing.  An employee suffering with mental health issues such as depression may benefit from more breaks during a meeting.

You may also wish to consider:

  • The potential bias of managers involved in any formal processes and provide training to recognise and mitigate against this
  • Whether it is appropriate to obtain medical or occupational health advice before any decisions are made

What else could you be doing as an employer?

There are several critical areas where HR processes must adapt to better support employees with hidden disabilities:

  • Accessible job descriptions: Job adverts should focus on essential skills and avoid unnecessary physical requirements
  • Flexible application processes: Offering alternative application methods and additional time for tests can help candidates with hidden disabilities
  • Bias training: Training recruitment panels to recognise and mitigate unconscious bias is crucial to preventing discrimination

Workplace adjustments

Work closely with employees to implement necessary adjustments, for example:

  • Flexible Working Hours: Allowing adjustments to work schedules to better accommodate employees’ conditions
  • Remote Working Options: Offering the possibility to work from home can be beneficial
  • Assistive Technologies: Providing specialised software or equipment to aid in job performance

Ongoing support and development

Create a supportive environment by:

  • Regular check-ins: Continuous review of adjustments and their effectiveness.
  • Support services: Access to counselling and employee assistance programs.
  • Training and awareness: Educating all employees about hidden disabilities to foster an inclusive culture and reduce stigma.

Challenges and Best Practice

Balancing confidentiality with the need for information to make reasonable adjustments is challenging. The following can help:

  • Building trust: Encouraging open dialogue about disabilities while ensuring confidentiality can foster a supportive environment
  • Personalised adjustments: Recognizing that each individual’s needs are unique and should be addressed on a case-by-case basis

Continuous Improvement

Regularly reviewing and updating policies and practices to maintain an inclusive environment.

Creating an inclusive and supportive environment is key to understanding any issues that your employees may have. Always consider whether there may be an underlying issue for any changes to performance or behaviour and explore these sensitively with an employee. Alongside reviewing and updating policies and processes, educating all employees about hidden disabilities is an essential component for fostering an inclusive culture and reducing stigma in the workplace.

If you would like specialist advice on this topic or to discuss another HR matter, please contact Lisa Reynolds in our team on 07771 316 123.