UK employers are entering the next phase of the Employment Rights Act 2025 reforms, with further legal changes taking effect from 6 April 2026, followed immediately by the launch of the Fair Work Agency on 7 April 2026.

Preparation should not be left until the last minute.

What’s Changing?

The government’s employment law reforms continue from 6 April 2026, bringing in a number of important changes for employers, alongside a new approach to enforcement.

These changes include:

• Day-one Statutory Sick Pay eligibility, with SSP payable from the first full day of sickness absence and available to more employees
• Day-one rights to give notice for Paternity Leave and Unpaid Parental Leave
• Whistleblowing protections for workers reporting sexual harassment
• A new single enforcement body: the Fair Work Agency

These changes are not minor updates. They affect:

• Your employment contracts
• Your key HR policies
• Your absence and leave procedures
• Your internal record-keeping
• Your overall compliance risk exposure

Understanding what applies to your business and acting before the changes take effect is the most important step employers can take right now.

6 April 2026 – Critical Deadline

From 6 April:

• Further Employment Rights Act provisions take effect
• Employers must ensure contracts and policies are aligned
• Internal HR processes must reflect updated legal requirements
• Risk increases for businesses relying on outdated or inconsistent documentation

Waiting until after the deadline could leave your business exposed, disorganised, or struggling to react once the new rules are live.

⚠ The Fair Work Agency Launches – 7 April 2026

A major development for UK employers is the launch of the Fair Work Agency (FWA) on 7 April 2026. The new agency will bring together enforcement of key employment rights into one place, making support and enforcement more joined up for both workers and employers.

This is not just another regulator.

The Fair Work Agency will bring together enforcement across areas including:

• National Minimum Wage
• Agency worker protections
• Gangmaster licensing
• Wider workplace rights enforcement over time

This marks a clear shift in how employment rights will be monitored and enforced.

For employers, the key message is simple: it is no longer enough to assume your processes are fine. You need to be able to show that your records, documents and people processes are accurate, current and consistently applied.

What Should Employers Be Doing Now?

✔ Review employment contracts
✔ Update core HR policies
✔ Check sickness, leave and family-related processes
✔ Ensure managers understand the April changes
✔ Confirm employee records and documentation are accurate and accessible
✔ Make sure your HR systems reflect current legal requirements

Preparation now reduces disruption, protects your business, and puts you in a stronger position as enforcement becomes more visible and more centralised.

If you are unsure how these changes affect your business, speak to your HR advisor or contact the WorkSmarter team for support.

Staying ahead of employment law is not optional — but it is far easier when your people processes are organised, up to date and easy to manage.

The next key deadline is 6 April 2026 — just 6 weeks away.

UK employers now have new legal obligations, and preparation cannot be left until the last minute.

What’s Changing?

The Employment Rights Act 2025 introduces significant reforms to UK employment law. While some provisions came into effect in February, further changes take effect on 6 April 2026, alongside the launch of a powerful new enforcement body.

These reforms are not minor adjustments. They impact:

☑️ Your employment contracts
☑️ Your essential HR policies
☑️ Your day-to-day HR processes
☑️ Your approach to dismissal and worker protections
☑️ Your compliance risk exposure

Understanding which changes apply to your business and acting before they take effect is the most important step employers can take right now.
February 2026 Changes – Already in Force

Several provisions introduced new compliance expectations for employers, particularly around:

• Worker protections and enforcement powers
• Enhanced Trade Union rights
• Strengthened employee rights
• Expanded regulatory oversight

If you have not yet reviewed your documentation or processes, you may already be exposed to risk

🚨 6 April 2026 – Critical Deadline

From 6 April:

• Further Employment Rights Act provisions take effect
• Employers must ensure contracts and policies are aligned
• Internal processes must reflect updated legal standards
• Risk of challenge increases for non-compliant businesses

Waiting until April to make changes could leave your business scrambling or worse, vulnerable.

⚠ The Fair Work Agency Launches – 7 April 2026

A major development for UK employers is the launch of the Fair Work Agency (FWA).
This is not just another regulator.

The FWA will have powers to:

• Investigate businesses proactively
• Enforce compliance without waiting for an employee complaint
• Impose penalties and take enforcement action
• Require production of employment documentation

This marks a significant shift in enforcement. Compliance is no longer purely reactive.

Employers must be ready.

What Should Employers Be Doing Now?

✔ Review employment contracts

✔ Update core HR policies

✔ Audit dismissal procedures

✔ Ensure managers understand new obligations

✔ Check documentation is accurate and accessible

✔ Confirm HR systems reflect current law

Preparation now reduces disruption, protects your business, and ensures confidence moving into April.

If you are unsure how these changes impact your business, speak to your HR advisor or contact the WorkSmarter team for support.

Staying ahead of employment law is not optional but it doesn’t need to be complicated when you’re prepared.

WorkSmarter Legal Alerts

February brings an important reminder for employers: 2026 is a preparation year. While many major employment law changes are scheduled for April, the groundwork needs to be laid now to ensure compliance, minimise risk and avoid last-minute disruption.

Here are the key HR and legal developments UK employers should be aware of this month.

Employment Rights Act 2025 – What Employers Should Be Doing Now.

The Employment Rights Act 2025 received Royal Assent in December 2025 and represents one of the most significant reforms to UK employment law in years. While not all provisions take effect immediately, employers should treat 2026 as a year for policy review, system readiness and manager training.

The Act introduces wide-ranging changes affecting dismissal rights, trade union law, enforcement powers and worker protections, many of which will be phased in through secondary legislation and consultation.

What to do now:

Review employment contracts, handbooks and internal HR processes to ensure you’re ready as further implementation dates are confirmed.

Statutory Sick Pay Reform – Effective April 2026.

One of the most impactful confirmed changes for employers arrives in April 2026, with reforms to Statutory Sick Pay (SSP):

• SSP will be payable from day one of sickness absence
• The Lower Earnings Limit will be removed, extending SSP entitlement to more workers
• SSP will be calculated as 80% of earnings or the statutory flat rate (whichever is lower)

This change will affect payroll costs, absence management and reporting.

What to do now:

Update sickness absence policies, review payroll calculations, and ensure HR systems can handle the new SSP rules accurately.

Day-One Family Leave Rights – April 2026.

From April 2026, eligibility rules for certain family-friendly rights will change:

• Paternity leave becomes a day-one right, allowing employees to qualify from the start of employment
• Ordinary unpaid parental leave will also become available from day one
• Restrictions on when paternity leave can be taken in relation to shared parental leave will be removed

These changes aim to improve flexibility and support for working parents.

What to do now:

Update leave policies, onboarding documentation and manager guidance to reflect new eligibility rules.

Trade Union & Industrial Relations Landscape.

The Employment Rights Act 2025 also confirms reforms to trade union and industrial action law, including the repeal of minimum service level requirements introduced under previous legislation.

With trade union engagement and consultation remaining high-profile issues, employers should ensure their processes around collective consultation, redundancy and employee relations are robust and compliant.

What to do now:

Review consultation procedures and ensure managers understand their obligations when engaging with employee representatives or unions.

Key Takeaway for Employers

April 2026 will bring multiple changes affecting pay, leave, enforcement and employee rights. Employers who act early will be best placed to manage compliance smoothly and avoid unnecessary risk.

Now is the time to:

• Review HR policies and handbooks
• Prepare HR systems
• Brief managers on upcoming changes

WorkSmarter helps businesses stay compliant by keeping all HR records, policies, absence data and employee information in one secure place — making it easier to adapt as employment law evolves.

In need of HR support? Contact us to find out more.

The Act introduces significant and wide-ranging changes. So what can you expect this year?

Last July, the government introduced a roadmap to indicate when changes will happen. Many of the regulations require consultation before they come into force, including on flexible working, guaranteed hours, and regulation of tips.

A number of consultations have already fallen behind due to the time it took to pass the Bill into law, but here’s the expected timeline for changes coming into force in 2026.

Already in force:

• Repeal of rules around minimum service levels during strike action.

17 February 2026:

• Various other trade union changes, including simplifying industrial action and ballot notices. Protections against dismissal for taking industrial action.

6 April 2026:

• Day 1 right for Statutory Sick Pay, payable from the first day of sickness. The lower earnings limit for SSP eligibility will also be removed.
• Day 1 right for paternity leave and unpaid parental leave. Paternity leave will also be permitted to be taken after shared parental leave, rather than requiring it to be taken first or be lost.
• Sexual harassment disclosure can count as whistleblowing, meaning individuals who raise concerns gain protection from detriment and unfair dismissal.
• Doubling of the maximum protective award for failure to follow collective redundancy rules - increasing from 90 to 180 days’ pay.
• Electronic balloting for industrial action.
• Fair Work Agency to be set up - in time this agency will take over certain enforcement functions including for: minimum wage, employment agencies rules, and for holiday pay and statutory sick pay with new powers to be able to charge higher penalties for not paying correct amounts.
• Equality Action plans re gender pay gap and supporting employees through menopause.
• Trade Unions: simplifying the trade union recognition process. Electronic and workplace balloting.

1 July 2026:

• Six months until a six-month qualifying period for protection from unfair dismissal is expected to come into force.

October 2026:

• Further limits on fire and rehire - these will significantly reduce an employer’s ability to use this method to change terms. Most forms of fire and rehire will be treated as automatically fair dismissal.
• Increase in Employment tribunal time limits - to extend from three months to six months for all claims.
• Tipping laws tightened - including requiring employers to consult with workers or their representatives before introducing a tipping policy.
• Requirement for employers to take all reasonable steps to prevent sexual harassment.
• Requirement for employers to prevent third party harassment for employees, unless all reasonable steps are taken to prevent it.
• Regulations to establish Fair Pay Agreement Adult Social Care Negotiating Body.
• Trade Unions: new rights and protections for trade union representatives. Duty to inform workers of their right to join a trade union. Strengthening of trade unions’ rights of access to workplaces. Two-tier procurement code for outsourced public sector workers. Extending protections against detriments for taking industrial action.

With more complexity and potential risk surrounding your people management, keeping on top of ‘paperwork’ is crucial. WorkSmarter’s suite of online HR tools helps every customer stay compliant with changing legislation.

We’re Here to Help

Get in touch, for expert, bespoke guidance and support with the upcoming changes to the new law, and the practical steps you need to take to get ahead in relation to your specific business. Contact Us.

This article has been prepared for general information only and does not constitute legal advice. It has been created based on information available in January 2026. Specific legal advice should be taken in any specific circumstance.

While some parts of the new legislation will not affect the average employer’s day-to-day operations, the Act really does represent a huge shift in workplace regulation - affecting every business, regardless of size. From hiring to contracts, probation periods to policies, the scale of the impact cannot be underestimated.

Included in the Act:

• Stronger protections for pregnant women and new mothers
• Measures to support flexible working
• Day One rights to sick pay and paternity leave
• Qualifying period for unfair dismissal cut from two years to six months
• Removal of the unfair dismissal compensation cap
• Minimum hours guarantee for zero-hours staff

With numerous and wide-reaching changes covering many aspects of employment law, a certain amount of complexity is inevitable. While we now know what will be in the Act, over the coming weeks and months expert input via government consultations will shape and finalise the full details. These details will become part of secondary legislation.

The path to unfair dismissal claims is to be cut by 18 months. What will this mean for smaller employers?

• Employees will require six months’ continuous service to bring an unfair dismissal claim, rather than the current two years. As usual, no qualifying period will apply where the dismissal is automatically unfair or discriminatory. This will come into force on 1 January 2027, so the reality is that businesses should really start taking steps to prepare for this change ahead of 1 July 2026 if they haven’t already done so, given that anyone employed from that date will reach six months’ service on 1 January 2027.
• The Act will also remove the compensation cap on unfair dismissal claims (which is currently the lower of either 52 weeks gross pay or £118,223). It’s expected that the cap will be removed as of 1 January 2027, meaning anyone unfairly dismissed on or after that date would be entitled to unlimited compensation. However, the exact timing has not yet been confirmed. For obvious reasons, that will make it even more important for employers to get their dismissal processes legally and procedurally correct.

How Can You Prepare?

• Ensure that your probationary period allows for a full review cycle well before the six-month point, rather than (as many employers do) relying on a meeting at six months only.
• Diarise probationary reviews at regular intervals; probably monthly.
• Ensure that probationary reviews are well documented with clear feedback and evidence, and followed up with training, mentoring, or performance plans early on if appropriate.
• Look at your notice provisions. You should carefully consider whether to shorten your notice requirements during probation, remembering if you fail to provide an employee with at least a week’s notice, that 1 week can be added to their period of continuous service for the purposes of obtaining unfair dismissal rights.
• PILON (Payment in Lieu of Notice) clauses will likely be required for all staff at any level, to prevent employees from inadvertently passing the 6-month limit simply by serving out their notice period.
• Review and tighten your recruitment process and procedures.
• Train your managers to help them identify issues early, and how to properly undertake the probationary review process throughout; waiting until month five is almost certainly too late to raise concerns.

With more complexity and potential risk to navigate around your people management, keeping on top of ‘paperwork’ is crucial.

WorkSmarter’s suite of online HR tools helps every customer stay compliant with changing legislation. We can also put you in touch with one of our specialist HR Partners for bespoke advice and guidance in relation to your specific business.
Get in touch.

This article has been prepared for general information only and does not constitute legal advice. It has been created based on information available in December 2025. Specific legal advice should be taken in any specific circumstance.

Agreement was finally achieved earlier this week after almost a year and most changes are scheduled to take effect in 2026 or 2027, according to the government’s roadmap.

While many of the key components of the Bill remain, the government has made some significant concessions on a range of topics such as introducing a six-months’ qualifying period for unfair dismissals, collective redundancy thresholds, and softening fire and rehire provisions.

A surprise late stage addition to completely remove the cap for unfair dismissal compensation awards has also been included. The government has said that it will publish an impact assessment on this before implementing the unfair dismissal sections of the Act.

Next Steps

While employers will be relieved that the deadlock has ended and that the passing of this Bill provides more clarity on what is to come, most of the measures will require secondary legislation before coming into force. A number of consultations will also be carried out.

Now we know for sure that change is coming, bringing employees new rights and employers new responsibilities, now’s the time to protect your business with practical steps. Start by reviewing your contracts, policies and people processes.

Here to Help

WorkSmarter is helping customers prepare for what lies ahead. Our suite of online HR tools makes it easy to stay compliant with changing legislation.

To assist SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers expert, bespoke advice and guidance in relation to their specific business. Get in touch.

Following the surprise announcement at the end of November that compromise had been found on unfair dismissal rights - moving from day 1 of employment to a 6 months qualifying period - it was expected that the Lords’ would likely allow the Bill to pass.

However, a late stage curveball quickly came to light revealing that the 6 months’ proposal is tied with a complete removal of the statutory cap for unfair dismissal compensation awards. This move has not been welcomed by some who fear it could lead to considerable financial consequences in some instances, for some employers.

An amendment to address this issue was narrowly voted in by the House of Lords yesterday, which means that the Bill must now return to the Commons once again. The amendment would require the government to conduct a review/consultation of their plan to abolish the cap on unfair dismissal compensation within three months of the Bill being passed.

We now wait to see whether the Commons will accept or reject this amendment, and if time will be found for the Bill to return to the Commons to decide this before the Christmas recess on 19 December.

Expert Advice and Guidance
WorkSmarter’s HR Newsroom will continue to keep you updated. Our HR Partners offer expert, bespoke advice and guidance that help SMEs navigate employment law and compliance issues. Get in touch.

After pushback from the House of Lords resulting in delays to the Employment Rights Bill timetable, the government is now accepting a six month qualifying period for unfair dismissal.

Following amendments made by the Lords and concerns from business groups, ministers now plan to introduce the unfair dismissal right after six months instead of from day one of employment.

Other new day-one rights to sick pay and paternity leave will still go ahead as planned, in April 2026.

Expert Advice and Guidance

WorkSmarter’s HR Newsroom will continue to keep you updated. Our HR Partners offer expert, bespoke advice and guidance that help SMEs navigate employment law and compliance issues. Get in touch.

1. National Insurance & Income Tax Thresholds Frozen Until 2031
The government has confirmed that NI and income tax thresholds will remain frozen for an additional three years, beyond the previous 2028 date.

Impact for employers:

• More employees will be pushed into higher tax bands as wages rise
• Increased employee NI and tax deductions may affect take-home pay and future wage expectations.
• Employers may experience more queries from staff around tax codes and pay calculations.

2. National Minimum Wage (NMW) Increase from April 2026

Over-21s (National Living Wage)
Rising 4.1%, from £12.21 → £12.71 per hour

18–20-Year-Old Rate
Rising 8.5%, from £10.00 → £10.85 per hour
This is part of the continued move toward a single adult rate for all workers.

Impact for employers:

• Payroll costs will increase, particularly for businesses employing younger staff.
• Potential to push up wages for other staff.
• Ensure contracts, pay schedules, and HR systems are updated ahead of April.
• WorkSmarter’s document library has templates for letters as required.

3. State Pension Payments Increasing 4.8%
Basic and new state pensions will rise by 4.8% next April under the government’s “triple lock” policy.

Impact for employers:

• Affects workforce planning and may influence retirement intentions among eligible employees.
• No employer action required, but useful context for conversations around flexible or phased retirement.

4. Salary Sacrifice Pension Contributions – NI to Apply Over £2,000 (from April 2029)
Employees using salary sacrifice to pay into their pension will start paying NI on contributions above £2,000 a year, beginning in 2029.

Impact for employers:

• Salary sacrifice remains beneficial but becomes less advantageous for higher contributors.
• Any pension contribution above this level would attract employee and employer National Insurance. Employees will see their take-home pay fall and employers will face higher payroll costs.
• Employers may see questions from employees about the long-term value of salary exchange.
• No immediate action required, but useful to factor into long-term benefit planning.

5. Training for under-25s on apprenticeships
As part of the New Youth Guarantee, this training will be made free for small and medium-sized enterprises and will be backed with £820m over three years.

Impact for employers:

• The co-investment relief that is already in place for SMEs when they hire an apprentice under the age of 22, will be extended to those aged 22 to 24.
• The government will work with employers to streamline the suite of apprenticeship standards available.

6. Tax Changes for Gambling Companies
Online gambling firms will see tax on profits rise from 21% to 40% in April. The 10% bingo tax will also be abolished.

Impact for employers:

• Relevant only if you operate in, or supply, the gambling industry.
• No direct impact on general employers, but notable for sector-specific SMEs.

7. Business Rates Lowered
Over 750,000 retail, hospitality and leisure properties will benefit from lower business rates tax rates.

Impact for employers:

• This will come in from April 2026.
• Sectors hit hardest by revaluations from April 2026 will be supported by a £4.3 billion business rates support package to cap bill increases.

8. Electric Vehicle Support
There will be £2bn support for EV transition and 10 year 100% business rates relief for eligible changepoints and EV-only forecourts. A one year extension will also be introduced to the 100% first year allowances for businesses buying zero emission cars and chargepoint infrastructure to April 2027.

Impact for employers:

• While this will cut costs for businesses, a new mileage-based electric vehicle excise duty will amount to 3p per mile for electric cars and 1.5p for plug-in hybrids.
• The rate per mile will increase annually with CPI.

What Happens Next?
WorkSmarter will continue monitoring the legislative updates and will implement any system changes required. We’ll keep you informed through our Legal Alerts and platform notifications.

Need HR guidance, please contact us for more information.

The government’s projected timetable to pass the Bill and roll out changes is slipping, following continued concerns - including the unintended consequences of day one rights by peers such as the former Archbishop of York, Lord Sentamu.

Usual convention, in which the upper house allows a Bill to proceed to law, is being flouted in a rare move amid worries that the government is ignoring its own impact assessments.

The dissent is focused around unfair dismissal rights, consultations, zero-hours contracts with guaranteed hours, and trade union matters.

What Does This Mean for Business?
The Bill must now return to the Commons once again, scheduled for 8 December, to further debate the Lords’ position.

If ministers are still determined not to compromise on their manifesto commitment that the bill should pass unamended, the game of parliamentary ping pong may continue.

Other options would be for the government to respond to the Lords’ feedback and make some compromises to the Bill.

Alternatively, they could invoke the Parliament Act - a rarely used power allowing them to present legislation for Royal Assent without the approval of the House of Lords.

Whatever happens, delay to this legislation will inevitably cause more uncertainty for employers.

Expert Advice and Guidance
WorkSmarter’s HR Newsroom will continue to keep you updated. Our HR Partners offer expert, bespoke advice and guidance that help SMEs navigate employment law and compliance issues. Get in touch.

The most recent amendments made by the House of Lords have been debated and rejected by the Commons. The government has refused to compromise and wants the Bill to pass into law intact, keeping its manifesto pledge of basic rights from day one.

The Lords' concerns for these specific areas of the Bill are about achieving a balance between enhanced worker protections and the potential burdens on employers, particularly small businesses.

The government is sticking to its original mandate to introduce an ambitious and ‘gamechanging’ package of reforms and says that the Bill is both ‘pro-business’ and ‘pro-worker’.

The Bill will now return once again to the House of Lords, who will be asked to back down so it can be passed into law without further delay. As yet, it is not clear whether the Lords will once again vote to defy the usual convention that the upper house allows a Bill to proceed to law.

Expert Advice and Guidance

WorkSmarter’s HR Newsroom will continue to keep you updated. Our HR Partners offer expert, bespoke advice and guidance that help SMEs navigate employment law and compliance issues. Get in touch.

Although we have already seen a process of parliamentary ‘ping pong’ between the upper and lower chambers, with amendments being rejected by both, at this stage of a Bill’s journey it is usual convention that the upper house allows the Bill to proceed to law - particularly if it is a manifesto commitment.

This move therefore sends a clear signal that the Lords want their concerns taken seriously.

They pushed back on three areas:

• Unfair dismissal from day one: the Lords propose an amendment on day one rights in favour of a qualifying period of six months, which would replace the existing two-year period.
• Zero-hours contracts: the Lords want stronger protections than the government’s position.
• Industrial action rules: the Lords rejected the government’s proposals regarding the thresholds required for industrial action by trade unions.

What Happens Now

The Commons must meet again to vote on the amendments the Lords have sent back to them. This means they will need to decide whether to reach some compromises or stick to their position.

This has inevitably delayed matters, and the Bill will not pass into law in early November as many expected.

Expert Advice and Guidance

WorkSmarter’s HR Newsroom will continue to keep you updated. Our HR Partners offer expert, bespoke advice and guidance that help SMEs navigate employment law and compliance issues. Get in touch.

When it becomes law, the Bill will introduce additions and amendments to existing legislation, including the Employment Rights Act 1996.

Although full details are not yet finalised, the direction of travel is now very clear. This Bill will introduce the biggest employment law reforms in a generation, affecting every employer and employee.

WorkSmarter’s HR Newsroom reports keep you up to date, helping you understand the significance and impact of some of the key changes.

Day one unfair dismissal rights amount to a fundamental change to both employment law and the reality of recruitment and HR practice. Here's what we know so far.

What’s Changing?

• The current minimum 2 years’ continuous service qualifying period for ordinary unfair dismissal will be repealed.
• Employees will gain the right to claim ordinary unfair dismissal from day one of employment. Protection applies once someone has started work and not before then (with exceptions such as whistleblowing and trade union activity if the job offer has been withdrawn.)
• A statutory probationary period (‘Initial Period of Employment’) will be introduced. The government’s preference is for this to be nine months but says it will consult extensively – there is lobbying from trade unions for the period to be shorter.
• During this period (and up to 3 months after, if notice was served during probation), there will be a simplified, ‘light touch’ dismissal process. This is likely to require at least one meeting to discuss performance issues and an opportunity for the employee to be accompanied.
• Redundancy dismissals are excluded from this ’lighter touch’ process, so ordinary fairness tests still apply to redundancies even during probation.
• The government has also indicated there will be a different compensation regime for employees who are dismissed during this ‘Initial Period of Employment’.

The duration of the ‘Initial Period of Employment’ (when the ‘light touch’ dismissal process will apply) and details of the compensation regime are still uncertain. These will be set out once consultation has taken place.

When Will Changes Come in?
Day 1 unfair dismissal rights are subject to government consultation, along with some of the other major changes. So whilst the Bill will become law soon, the change to day one rights will not be implemented at that point. The current projected timeline is 2027, but no exact date has yet been announced.

Be Aware

• Early decisions (e.g., probation outcomes) will carry greater legal risk if processes aren’t fair, documented and timely. Decision-making around dismissals must be clear, consistent, and legally defensible.
• Tribunal time limits are planned to move from 3 to 6 months in October 2026, extending potential claim windows.
• The government estimates that around 9 million employers with under two years’ service (about 31% of the workforce) would gain stronger protection.
• If an employee makes a claim, poor paperwork and slow action - combined with longer tribunal time limits - could put employers at risk of greater costs.

Good to Know
Employers can still have longer contractual probation periods, for example for benefits or other contractual purposes.

Practical Steps
Although final rules are pending, ground work can be put in place to help ease the pressure before the changes become law:

• Look at your employment data to understand any dismissal history and related employment issues. Look for hotspots by role, team or manager and address root causes (recruitment, expectations, induction).
• Sharpen your recruitment and hiring practices, including selection criteria, so they’re as effective as possible.
• Make sure job descriptions are accurate and comprehensive.
• Review and refresh your contracts & handbooks.
• Set out all company policies and expectations, and make sure current and new employees are fully aware.
• Check your probation reviews are fit for purpose. Consider and plan a light-touch, fair process for probation with scope for at least one meeting to set out concerns, with the employee’s right to be accompanied.
• Diarise regular reviews. Schedule structured check-ins throughout probation being aware that, if needed, you can act before probation ends so you remain within the lighter-touch window.
• Make sure you have a robust system in place to document everything. Keep an audit trail.
• As details become known, update your template documents so they’re legally watertight. Flag accompanying rights and appeal routes in templates.
• Once the final changes are clear, update and train managers on how to follow proper processes every time: actions and decisions must be fair, and reviews recorded and documented properly.

WorkSmarter is Helping
We’re helping customers prepare for what lies ahead. Our suite of online HR tools make it easy to stay compliant with changing legislation.

Employment Document Library
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WorkSmarter’s editable templates are divided into ten clear categories and always compliant with current legislation. Whether you're dealing with a job offer or termination, disciplinary, maternity leave, or any other common employment scenario, you can rely on our HR Document Library to avoid common pitfalls.

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Staff Training Records
Protect your business with a permanent record of who was told what, when.
Accurate and effective, this tool makes it simple to record the training you provide, with digital records available for staff to review at any time.

HR Partners
To help SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers expert, bespoke advice and guidance in relation to their specific business. Get in touch.

With major reforms edging closer, employers will need to adapt quickly. Here’s a summary of what to expect and when, according to the government’s roadmap.

Autumn 2025 to October 2026

Industrial relations changes: several reforms are expected to come into force, after consultations on some of the packages, including duty to inform workers of their right to join a trade union.

April 2026

• Statutory Sick Pay: SSP to become payable from day 1 of sickness; lower earnings limit to be removed.
• Day 1 Unpaid Parental Leave and Paternity Leave.
• Collective Redundancy Payment award: doubling the maximum period of the protective award.
• Fair Work Agency: the creation of a new public body with an extensive range of enforcement powers.
• Whistleblowing protections - disclosure of sexual harassment: to be added to list of qualifying disclosures.

October 2026

• Tribunal claim time limits extended: from 3 to 6 months.
• Stronger duty to prevent sexual harassment, requiring employers to take “all” reasonable steps: although the power to introduce regulations is likely to take effect in 2027, the measures (obligation) will come into force in October 2026.
• Obligation on employers not to permit harassment of employees by third parties.
• Fire and rehire restrictions: views gathered on updating the Code of Practice during Autumn 2025.
• Tightening tipping law: consultation expected late 2025 or early 2026.
• Outsourcing of public services and TUPE: regulations and a code of practice to be introduced to avoid a “two-tier” workforce, and a call for evidence to examine TUPE before coming into force.

2027

• Day 1 right to claim unfair dismissal, including probationary periods: a day 1 right not to be unfairly dismissed. This will require extensive consultation before implementation. Consultation will include the length of a ‘light touch’ initial probationary period (the government preference is 9 months); the process required to dismiss an employee during this period; and the compensation regime.
• Flexible working: consultation on stronger employee rights expected to take place winter 2025/early 2026.
• Pregnancy rights: increased protection against dismissal for women during pregnancy, maternity leave or following a return to work - this will also apply to other forms of family leave such as adoption leave, shared parental leave, neonatal care leave and bereaved partners’ paternity leave.
• Day 1 right to bereavement leave: further consultation on rights for pregnant workers due in autumn 2025.
• Gender pay gap and menopause action plans: introduced on a voluntary basis from April 2026, then coming into force in 2027.
• Zero hours contracts and predictability: with consultation expected autumn 2025.
• Collective redundancy changes: following consultation at the end of this year or early 2026.
• Umbrella company reforms: consultation due to take place before the end of 2025.

No Date yet Announced

• Holiday records: new obligation on all employers to keep records demonstrating compliance with holiday entitlement, including how much leave and pay.
• Bereavement leave for pregnancy loss: extends the new right to bereavement leave to include pregnancy loss that occurs before 24 weeks of pregnancy.
• Ban on certain non-disclosure agreements.
• Gender pay gap reports to identify contract workers: regulations needed to extend the current reporting, with possible further consultation.

Whether it’s responsive tools to help keep you compliant and organised, or specific employment-related guidance, WorkSmarter has you covered. Get in touch.

Eligible working parents of three and four-year-olds already get 30 hours a week of childcare funded by the government.

Two phases of this expansion have already happened and this is the final stage of rollout.

To qualify for the hours, the majority of parents must earn more than £9,518 but less than £100,000 per year.

Inquiries for Places ‘through the roof.’

While the move increases support for women returning to work and is a positive one for working parents and employers, concerns have been raised about the availability of places due to high demand - with some regions affected more than others.

Local nursery and childminder waiting lists can be long, so getting a place within a reasonable distance from the workplace, or to suit work patterns, may be a challenge. Even when a suitable place is found, parents may need to be flexible about what days are available.

Staff Shortages

Despite increasing government funding and support for childminders, low rates of pay have contributed to a fall in their numbers. According to Ofsted figures 1,000 left childminding roles in the last year.

Recruitment and retention in the early years sector, attributed to issues around low pay and limited career progression opportunities, may prove to be a significant barrier to working parents being able to take up this new government flagship funding. The National Foundation for Educational Research estimates that 35,000 more early years staff are still needed across the range of providers to bridge the gap between demand and availability, although this may still leave regional discrepancies.

Rising Fees

A study tracking nursery fees prices over the past 18 months shows that costs have risen fastest in areas with the lowest government funding. In regions where there is more competition for places, increased demand from expanded entitlement now risks driving prices up for the hours that parents still have to pay for.

Key findings from the University of Bradford and University of Bath study show:

• Marked regional differences in childcare costs: London is the most expensive area, with the South East and South West close behind, while the North East has the lowest fees.
• Across much of England, the government’s funding rate for three-and four-year-olds falls short of the average hourly cost of childcare. As a result, nurseries may need to make up the difference by charging higher fees for places for younger children.
• Between March 2024 and March 2025, nurseries in the least well-funded areas raised fees more sharply than those in better-funded parts of the country.

The study concludes that without adequate funding, the government’s national childcare policy risks pushing up fees, reducing savings for families and deepening regional divides. The researchers will continue to track the impacts now that the final phase of the rollout is underway.

Separate research also suggests that parents are being asked to pay additional costs to cover items such as nappies and food, which may go towards making up for any funding shortfall. The government has issued guidance saying any additional costs need to be laid out clearly and are optional.

The Employer Perspective

The government’s intention is that the expansion of funded childcare hours will strengthen workforce participation and ease pressure by providing working parents with significant savings on fees.

More accessible childcare has the potential to help employers with productivity gaps by improving staff retention. As more working parents - particularly mothers - move back into the workplace, this could ease skills shortages in some sectors, reduce absenteeism, and provide greater stability for SMEs that often rely on experienced staff.

However, ongoing concerns about childcare shortages and rising fees mean some staff may still struggle to secure places that match their working hours or location.

For businesses, this uncertainty could continue to affect workforce planning, with employees needing flexibility around start times, shift patterns, hybrid working or shorter hours in order to manage childcare arrangements.

Stay Compliant
To support SMEs with employment law and compliance, WorkSmarter’s HR Partners provide tailored advice and guidance specific to your business. Get in touch to find out more.

Key Points

• Projected increase: a 4% rise from the current £12.21 to £12.71 per hour for workers aged 21 and over.
• Possible further rise: depending on economic conditions, the LPC says the rate may need to reach £12.86 to meet the government’s target.
• Policy goal: the government has committed to setting minimum pay at two-thirds of median earnings.
• European context: the UK already has the second-highest minimum wage in Europe relative to average earnings.

Age Band Reform Under Review

The government is also considering changes to minimum wage rates for younger workers.

• The current rate for 18–20-year-olds is £10.00 per hour.
• Ministers have called these lower age-based rates “discriminatory”.
• The LPC has been asked to consult on narrowing or removing the gap between youth and adult rates, and will put forward recommendations potentially leading to a single adult rate.

What Employers Need to Know

• Sectors such as hospitality and retail may be especially impacted.
• Employers should start reviewing budgets, pricing, and staffing plans to prepare for the anticipated rise.
• Final minimum wage recommendations for April 2026 will be made by the LPC in October 2025, with government decisions announced shortly after.

To help SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance in relation to their specific business.

Get in touch.

When Will the Bill Become Law?

The Bill is currently going through Parliament and is expected to become law around October 2025. After that, new rules are being phased in - giving businesses time to prepare.

From April 2026

Statutory Sick Pay (SSP)

The Lower Earnings Limit and the waiting period will be removed — meaning more employees will qualify for SSP, and from the first day of absence.

Parental Leave

Employees will have a new right to paternity leave and unpaid parental leave from day 1 of employment, instead of having to be continuously employed for a minimum period of time.

There will also be changes to redundancy laws, whistleblowing protections, the introduction of a ‘Fair Work’ agency, and a package of trade union measures.

From October 2026

Fire & Rehire

Current practices will be ended, with new rules designed to apply only in exceptional circumstances. There will be strict limits on how and when employers can ‘fire and rehire’ workers under revised terms and conditions of employment.

Sexual Harassment

Employers will have a new duty to take ‘all reasonable steps’ to prevent sexual harassment in the workplace.

Tipping Practices

Consultation with workers will be mandated to ensure fairer allocation of tips.

Employment Tribunals

Changes will be made to time limits for bringing claims.

Other measures include: strengthening and extending trade-union and strike related protections; introducing an obligation on employers not to permit the harassment of their employees by third parties.

From 2027

‘Day 1’ Right to Protection From Unfair Dismissal

For all workers, from the start of employment.

Zero Hour Contract Reforms

New provisions for zero hours contracts to provide workers with more stable hours and predictable income.

Flexible Working

Improved access, intended to help people balance work with family, health, and other responsibilities.

2027 will see changes to several other areas. These include: bereavement leave; dismissal protections for pregnant women and new mothers; and further harassment protections.

What This Means for Your Business

The Employment Rights Bill is one of the most significant overhauls of UK employment law in decades and, while we’ve covered some of the key provisions, there is a lot in it for employers to get to grips with.

We’re here to help. Our HR Partners work directly with SMEs like you, to make sense of these changes and how they apply to your individual business.

Get in touch and we’ll connect you with one of our trusted HR Partners for expert guidance and advice.

Here’s a summary of the key changes employers should be aware of:

Statutory Family Leave Pay
The weekly statutory rate for the following types of family-related leave will increase from £184.03 to £187.18:

• Statutory Maternity Pay
• Statutory Paternity Pay
• Statutory Shared Parental Pay
• Statutory Adoption Pay
• Statutory Parental Bereavement Pay

Statutory Neonatal Care Leave Pay
From 6 April 2025, a new entitlement to Statutory Neonatal Care Leave will be introduced, paid at £118.75 per week. This supports parents whose babies require specialist neonatal care after birth.

This new entitlement will only apply to babies born on or after 6 April 2025. Neonatal Leave is a day-one right. Certain qualifying conditions must be met.

Earnings Threshold
The average gross weekly earnings required to qualify for the various forms of statutory family-leave pay will increase from £123.00 or more per week to £125.00 or more per week.

Statutory Sick Pay
Statutory sick pay will increase from £116.75 to £118.75 per week.

Other Statutory Payments

• Statutory Guarantee Pay (for short-time working or lay-offs): increases from £38 to £39 per day.
• Statutory Redundancy Pay: the statutory cap on calculating redundancy payments rises from £700 per week to £719 per week.
• Maximum Compensatory Award for Unfair Dismissal: the upper limit increases from £115,115 to £118,223.

To help SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance in relation to their specific business.
Get in touch.

Regardless of size, all businesses must pay the correct minimum wage. Non-compliance can result in HMRC penalties, back payments, and being publicly named for underpayment.

Employers can choose to pay their employees more than the minimum rates. This can be a valuable way to attract and retain talent, and to recognise progress and contribution.

Updated Rates from April 2025
Aged 21 and above (National Living Wage): £12.21
Aged 18-20: £10.00
Aged under 18 (but above compulsory school leaving age): £7.55
Apprentices aged under 19: £7.55
Apprentices aged 19 or over, but in the first year of their apprenticeship: £7.55

To help SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance in relation to their specific business.
Get in touch.

The late Easter bank holiday break means that there will only be seven bank holidays between 1st April 2024 and 31st March 2025, and that might pose a unique challenge depending on your circumstances.

What Does This Mean for Employers?

Most workers who work a 5-day week must receive at least 28 days’ paid annual leave a year. This is the equivalent of 5.6 weeks of holiday.

If your holiday year runs from 1st April to 31st March, then this leave year you might be legally obligated to give any workers who are only entitled to statutory minimum holiday an extra day of holiday. This is because full time employees are entitled to a statutory minimum holiday entitlement of at least 28 days, including any bank holidays.

Holiday entitlement can be complicated due to anomalies like this one, making it easy to breach employment law if you’re not careful.

If you’re not sure whether you will need to give workers an extra day of annual leave, then it’s essential to check how the the holiday clauses are expressed in their contracts.

If the contract states they are entitled to 28 days of holiday each holiday year including bank holidays, you should fine because the worker will take the 7 bank holidays off and choose when to take the remaining 21 days.

However, if the contract has wording along the lines of the entitlement being to 20 days of holiday ‘plus bank holidays’ then, due to only 7 bank holidays within this particular holiday year period, they will be one day below the statutory minimum of 28 days.

To correct this, you can offer the employee an additional day of holiday for this year only, to be taken before the holiday year runs out.

What is the Risk?

Although employers can determine how flexible they are about forwarding holidays allowing some limited flexibility, they can’t demand that employees carry forward any part of their statutory holiday, and must ensure that the statutory element of any entitlement is taken in each leave year.

Failing to correctly calculate holiday entitlement can result in breaches of the Working Time Regulations 1998, which sets out the statutory minimum requirements for paid leave.

If a worker thinks their rights to leave and pay are not being met this could lead to legal challenges. Miscalculations could result in penalties, tribunal costs and legal fees, as well as the administrative burden involved and risk of damage to the company’s reputation.

If you think any of your workers may be impacted this leave year, then HR or managers should assess the risk so you can take action to ensure you’re not in breach of the legislation.

Here to Help

WorkSmarter’s easy to use HR holiday management software helps you comply with complex HR legislation. The flexible holiday planner adjusts to the way different businesses operate their holiday and staff leave policies.

Our trusted HR Partners can also offer customers bespoke advice and guidance on employment legislation in relation to their specific business.

Get in touch or book a demo.

Many employers had hoped for a softening of the Bill’s measures following recent consultations. However, most proposed amendments focus on strengthening worker protections rather than easing employer obligations.

Key Proposed Amendments to Date Include:

· Extending restrictions on zero-hours contracts to cover agency workers.

· Setting Statutory Sick Pay at 80% of normal weekly earnings from day one of absence, where 80% would otherwise be less than the lower earnings limit.

· Introducing a legal definition of 'umbrella companies', ensuring they are regulated as employment businesses.

· Doubling potential financial penalties for breaches of collective redundancy rules.

· Granting the new Fair Work Agency greater powers than originally proposed to investigate and take civil action against employers, including issuing fines for pay-related breaches.

Notably, no amendments currently suggest a rollback of Labour’s key manifesto commitments, such as day one rights, fire and rehire tactics, and increased trade union rights.

Here to Help
With a lot for employers to take on board, businesses should stay informed as the bill moves forward. WorkSmarter will continue to keep you up to date in the coming weeks and months as the legislation is drafted and progresses through parliament.

To help you prepare for the likely changes ahead and avoid complications, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance about the new legislation in relation to their specific business.

Get in touch.

The Worker Protection (Amendment of Equality Act 2010) 2023, introduces a new duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment.

What is Sexual Harassment

Updated guidance, newly issued by the Equality and Human Rights Commission (EHRC), says that sexual harassment occurs when a worker is subjected to unwanted conduct, which covers a wide range of behaviour.

The contact doesn’t need to be sexually motivated, only sexual in nature. Unwanted conduct can be from someone of the same or a different sex.

Prevention

Employers will be under a new duty to prevent potential situations where their staff could be subject to sexual harassment while working. Every employer must comply and will need to anticipate any likely or predictable situations where this could occur, taking preventative action to minimise risk.

Anticipating risk and deciding what proactive steps need to be taken may be different for different employers and depend on individual circumstances, such as the working environment, nature and size of the business, and resources.

It’s important to take all necessary steps to proactively protect your employees, ensure compliance with the Act, and protect your business by having appropriate evidence which can be presented in the event of a future Tribunal claim.

· Assess the risks.

· Identify the risk factors.

· Put preventative measures in place.

· Create a clear policy of expected workplace behaviour.

· Ensure staff have clearly defined reporting procedures for making a complaint.

· Train line managers and staff.

Where relevant, and depending on factors within their own business, employers may also wish to consider any particular risk posed to their staff by third parties such as customers and suppliers.

Failure to Comply

· The EHRC will have powers to take direct enforcement action against employers who breach the mandatory duty.

· Employment Tribunals will have the power to increase compensation for harassment by up to 25% where an employer has breached its duty to take reasonable steps. It’s important to note that compensation awards for harassment claims are uncapped.

If an Incident Occurs

If an incident of sexual harassment has taken place, employers should immediately investigate and resolve any complaints promptly, efficiently and sensitively. Action should be taken to stop it happening again.

If an individual makes a complaint that may amount to a criminal offence, the employer should raise the possibility of reporting the matter to the police with them. If the employee chooses to do so, the necessary support should be provided.

Best Practice

· Ensure confidentiality and support for employees who report sexual harassment.

· Regularly review policies, procedures and training to ensure the measures are working effectively and that you remain compliant.

WorkSmarter Can Help

Understanding the intricacies of this new law is essential, especially with regard to your individual circumstances. What are the ‘reasonable steps’ your organisation needs to take?

While most employers will already have measures in place to deal with workplace sexual harassment, some organisations may wish to review current policies or consider doing more to protect from risk.

To help larger employers avoid the pitfalls, WorkSmarter can arrange in-house, bespoke training from expert employment specialists on this subject.

Get in touch today

Note: The content of this article is for general information only and does not constitute legal advice. Specific legal advice should be taken in any specific circumstance.

The Tipping Act obliges employers to comply with various requirements for qualifying tips.

• Businesses must allocate and distribute all qualifying tips, gratuities, and service charges to their workers in a fair and transparent way.
• Tips must be transparently distributed by the end of the month after the month in which the tip was paid.
• Businesses must keep a record, a written policy which is accessible to staff, of how every tip has been dealt with.
• Tax and social security implications need to be considered. This will depend on how they are distributed to workers.

Business Impact

The new law applies to any business that receives a qualifying tip from a customer. It will particularly affect businesses in the hospitality industry, no matter their size, and can include independent operators such as local coffee shops to national restaurant, pub and bar chains. The Act will also impact hairdressers, taxi companies, and other such businesses that regularly receive tips.

The UK hospitality sector is made up of approximately 143,000 businesses, employing around 1.8 million people, and has been under pressure due to rising costs and the cost of living crisis. Although closures are slowing from last year, the first quarter of 2024 saw four sites closing each day.

Make Sure You’re Compliant

A new report reveals that two thirds (63%) of businesses currently deduct a percentage of tips from employees. 29% use this to cover costs such as processing fees, while 28% take a profitable share of the tips.

Under the new Act, this won’t be allowed and employers will have to distribute 100% of customer tips to staff, with no exceptions except for standard-rate tax deductions.

Companies who are not currently compliant with the new Act will need to change the way in which they operate. The report estimates this to be more than 90,00 businesses.

Using a Tronc

Tips and discretionary service charges can be allocated to workers through a tronc, which is a special pay arrangement that lets businesses fairly share this money given by customers.

As long as the employer arranges for qualifying tips to be allocated by an independent tronc operator, with no unauthorised deductions made, the new Act confirms the employer is treated as having ensured that these tips are fairly distributed.

Beware Complexity

The new legislation is complex and employers are advised to review their existing or proposed arrangements to ensure full compliance. Businesses may wish to draft their own bespoke tipping policy and to seek advice on the necessary legal issues arising.

To avoid complications, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance about the new legislation in relation to their specific business.

Get in touch.

Note: The content of this article is for general information only and does not constitute legal advice. Specific legal advice should be taken in any specific circumstance.

Labour has confirmed it will repeal the Act, introduced by the previous government, that would give workers and agency workers the right to request a more predictable work pattern in certain circumstances.

The Workers (Predictable Terms and Conditions) Act 2023 came into force on 18 September 2023 but needed secondary legislation before implementation later this month.

This did not happen before the election was called and the Department for Business and Trade has now confirmed that there are no plans to proceed with introducing this secondary legislation. That decision, however, should not be interpreted as a sign of the new government being opposed to the rights that this legislation was due to confer – to the contrary, they feel the legislation did not go far enough and intend to introduce stronger employee rights in their own forthcoming legislation.

Rather than having two models, which could be confusing to employers and workers, the government intends to take its own approach on work pattern predictability and contracted hours.

Set out in the Make Work Pay plan, Labour stated its intention to end ‘one sided’ flexibility and ensure all jobs provide a ‘baseline level of security and predictability.’ The government recently said that it intends to implement this plan in full, though details remain scant at this stage.

Here to Help

The Employment Rights Bill is due to be published soon and WorkSmarter will continue to keep you up to date as the legislation is drafted and progresses through parliament.

To avoid complications, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance about the new legislation in relation to their specific business.

Get in touch.

Here’s a quick summary of four important but less widely discussed changes.

Protecting Employees From Sexual Harassment

What? From October 2024, the Worker Protection (Amendment of Equality Act 2010) Act 2023 comes into force, creating a new legal duty for employers to take ‘reasonable steps’ to prevent their workers from sexual harassment in the workplace. It also grants Employment Tribunals a power to increase compensation by up to 25% where an employer is found to have breached the new duty.

The EHRC has published draft guidance on the proposed changes and the new Act will work alongside the pre-existing protection within the Equality Act 2010.

However, it’s believed that the government may wish to amend the Equality Act 2010 to extend the protection to include third-party harassment (for example, from customers) therefore the Act could be extended and a new statutory code of practice introduced.

When? Employers should ensure they’re prepared in advance of 26 October 2024, when the Act will come into force.

Employment Tribunals

What? Extending the time limit for bringing a claim from three months to six.

Why? Labour believes that three months does not give an aggrieved employee enough time to issue a claim, particularly if their dismissal has left them with financial or health concerns to prioritise.

When? Employment Tribunals changes were set out in Labour’s Plan to Make Work Pay and Labour has confirmed that it’s committed to delivering this Plan in full, though we still don’t know a timescale for this becoming law.

The Employment Rights Bill will be introduced to Parliament by 12 October, within 100 days of the government taking office, but it’s not yet clear which policies will be included or how long it will take to go through both Houses of Parliament. It’s presumed there will also need to be time to consult.

Employment Status

What? Labour eventually wants to create a simpler system for employment status. This would likely see ‘employees’ and ‘workers’ merged into one single category, with another for those who are genuinely self-employed. If all workers are given the same employment rights, there are implications for tax as well as for rights such as sick pay and family leave but crucially, also, the right to claim unfair dismissal (which workers cannot currently claim).

Why? To fit modern working practices and provide clarity for workers and businesses, making it easier to apply the correct employment rights and protections.

When? As a substantial employment law change, this longer-term aim is expected to be preceded by a detailed consultation.

Right to Switch Off

What? The government wants to introduce a ‘right to switch off’ when workers are outside of their normal hours. A code of practice could be established where both employees and employers agree to acceptable levels of contact – or no contact at all – while not working.

Plans are likely to be flexible and broad enough in scope to recognise the varied needs of different companies, sectors and individuals, and to maintain a balance between productivity and staff wellbeing.

Why? To ensure people have some time to rest and that working from home doesn’t result in homes turning into ‘24/7 offices’. The government says switching off outside work is key to productivity and could boost economic growth.

When? With no clear date yet indicated, business will need to see how this evolves over the coming months as stakeholders react to this pledge.

WorkSmarter will keep you up to date with these changes, helping you understand new legislation and your obligations so you can avoid complications and stay compliant. Our HR Partners can offer bespoke advice and guidance.

Get in touch.

Note: The content of this article is for general information only and does not constitute legal advice. Specific legal advice should be taken in any specific circumstance.

Dismissal and re-engagement, colloquially known as fire and rehire, is where an employer makes an employee redundant (or otherwise terminates their employment) and then re-engages them on less favourable terms and conditions. The practice became a hot topic in 2024 when P&O Ferries were caught in a media and political storm.

New Code Summary

In essence, the new code sets higher standards for employers to meet if they’re considering dismissal and re-engagement and creates potential consequences if employers fail to follow the guidance.

The practice is to be used only as a measure of last resort and employers must contact Acas for advice before raising the prospect with staff.

When it comes to relevant cases, such as unfair dismissal claims, employment tribunals now have to take the new guidance into account.

More Change Ahead

This revised code of practice took effect on 18 July 2024, a day after the new Labour government confirmed in the Kings Speech that it plans to reform Fire and Rehire as part of the new Employment Rights Bill.

It should be noted therefore that this ‘new’ law is in fact the old law introduced by the former government. Labour had always said that this legislation did not go nearly far enough, and their recent announcements regarding employment law reform have confirmed that they intend to reform the law further. Employers will therefore need to adapt to both this new law but also these expected further changes when they are brought in.

While Labour has committed to introducing their employment law legislation within 100 days, details and timeframes are not yet clear. The legislation will have to go through the parliamentary process, and it is highly likely that there will then be an implementation period of some kind to allow institutions and businesses to prepare for the upcoming changes.

In the meantime, employers should familiarise themselves with the new code and make sure they are compliant – even if this proves to be a fairly short-lived piece of legislation, the reality is that any new law will only be more onerous for employers so it makes good sense to adapt now, should your business be one that tends to use or intends to use this practice.

Here to Help

WorkSmarter will continue to keep you up to date in the coming weeks and months as the legislation is drafted and progresses through parliament.

To avoid complications, WorkSmarter’s HR Partners can offer customers bespoke advice and guidance about the new legislation in relation to their specific business.

Get in touch.

Labour has promised a ‘plan to make work pay’ under its New Deal for Working People and campaigned on a platform of significant reform, in particular to employment law.

Here are the main areas that SMEs should expect to be reformed:

• Banning zero hours contracts.
• Reforming the practice of fire and rehire.
• New Day One rights on protection from unfair dismissal and parental leave.
• Increasing Employment Tribunal time limit claims to six months.
• Simplifying employment status so that someone is either a worker or genuinely self-employed.
• Increasing the minimum wage so that it is a genuine living wage.
• Removing the age bands so that all adults are entitled to the same minimum wage.
• Taking action to reduce the gender, ethnicity and disability pay gaps.
• Strengthening protections against maternity and menopause discrimination and sexual harassment, as well as strengthening protections for whistleblowers reporting sexual harassment.
• Introducing a right to ‘switch off.’
• Updating trade union legislation by removing some restrictions on trade union activity, improving access to trade unions within workplaces and strengthening the protections available to trade union representatives and members.

Labour has committed to introducing legislation within 100 days but also to consult fully with businesses and workers before legislation is passed.

This legislation is likely to incorporate many of the proposed changes set out above and will have a significant impact on the way employment law in general and the employment tribunal system operates in the United Kingdom.

This does not mean that the changes will be in force within 100 days: the legislation will have to go through the parliamentary process, and it is highly likely that there will then be an implementation period of some kind to allow institutions and businesses to prepare for the upcoming changes.

Whilst there are still uncertainties over how the legislation will ultimately look or when the changes will come into effect, what is clear is that a Labour government will instigate a fundamental change to the world of work – which means there will be a lot for employers and HR professionals to get to grips with.

WorkSmarter will keep you up to date with these changes, helping you understand new legislation and your obligations so you can avoid complications and stay compliant. Our HR Partners can offer bespoke advice and guidance.

Get in touch.

Note: The content of this article is for general information only and does not constitute legal advice. Specific legal advice should be taken in any specific circumstance.

The new plan:

• Restates Labour's intention to introduce legislation within 100 days of entering government. It suggests that some proposals can be acted on quickly and included in an Employment Rights Bill: for example, creating a single enforcement body or removing the lower earnings limit on statutory sick pay. It acknowledges that others will take longer, stating that a review of parental leave would take place within the first year of a Labour government and a detailed consultation would be undertaken on the proposal to move towards a single status of worker.
• Affirms previously stated commitments to introduce day one rights including the right to claim unfair dismissal subject to any probationary period conditions (which now includes making flexible working the default from day one for all workers, except where it is not reasonably feasible), end the practice of "fire and rehire", ban "exploitative" zero hours contracts and extend time limits for commencement of tribunal proceedings (now stated to be six months).
• Includes new proposals to enable employees to raise collective grievances about conduct in their workplace with Acas, ensure the right to redundancy consultation is determined by the number of people impacted across the business as a whole rather than in a single workplace and to require large employers to produce menopause action plans.
• In a significant move that has yet to attract any mainstream media coverage, it no longer refers to removing any caps on compensation payable for unfair dismissal (previously a cornerstone of the green paper) or to introducing personal liability for company directors for breaking the law or failing to comply with tribunal orders. There is also no longer any reference to the introduction of joint and several liability between companies in a supply chain to ensure accountability if slavery or other criminal labour exploitation is discovered.

As the General Election nears, we can be sure to hear a lot more about all parties' manifestos in relation to business, employers and employment law.

Rachel Meade, a social worker of 20 years, was awarded the compensation – which included £5000 for exemplary damages against regulator Social Work England, described by lawyers as an “unprecedented” move.

Exemplary damages are rarely awarded and made to punish conduct that is “oppressive, arbitrary or unconstitutional.”

Suspended After Sharing Facebook Posts

Ms Meade sued employer Westminster City Council and Social Work England in 2022 for harassment and sex discrimination, after she was suspended over her belief in the reality of biological sex and sex-based protections as set out in the Equality Act.

A member of the public had complained in 2020 after Ms Meade had shared and liked some ‘gender critical’ posts on Facebook. She was then suspended by the council on charges of gross misconduct and subjected to a prolonged disciplinary process. Social Work England placed her under a ‘fitness to practice’ investigation.

Serious Abuse of Power

At the start of this year a judge ruled that the regulator and council had subjected Ms Meade to harassment over her belief. Tribunal judge, Richard Nicolle, said that Social Work England’s actions amounted to “a serious abuse of its power as a regulatory body.”

The Employment Tribunal called for the council to ensure all its managers and human resources staff receive training on freedom of expression and protected belief. Social Work England was also given a similar recommendation.

Takeaway for Employers

As more gender critical cases are being taken to tribunal with successful claims against employers, what should organisations be aware of?

A recent number of decisions in gender-critical cases demonstrate that this is a philosophical belief, protected in law under the Equality Act 2010.

Freedom of expression and the legal right to express protected beliefs is a rapidly evolving area of employment law so it’s important to be clear on the laws which protect everyone from unfair treatment.

One of the most noteworthy cases to date has been the judgment in the case of Maya Forstater, which established that ordinary beliefs about the two sexes are covered by the protected characteristic of belief in the Equality Act 2010. You can read more about what the Forstater judgment means for employers here.

In response to the Rachel Meade case, WorkSmarter CEO Luke Burton said that an organisation’s internal policies might not necessarily be aligned to decisions made by the Tribunal.

“This Tribunal outcome provides another warning to employers of the risk of making assumptions about what amounts to gross misconduct, and that what might appear to be a breach of an employer’s own policies or rules does not necessarily equate to wrongdoing in the more objective eyes of the Tribunal.

“Not only did this employer lose the case, but the Tribunal saw fit to impose an award of exemplary damages which is extremely rare.”

Make Compliance Easier

When it comes to workplace issues such as discrimination, disciplinary and grievances, it’s essential to make sure your documents are up to date.

WorkSmarter’s Employment Document Library contains over 100 fully compliant HR documents, ready for every scenario. Continuously updated, we ensure that the templates you use are always fit for purpose.

WorkSmarter provides a wide range of HR tools to help companies grow and manage their staff. Our upgraded plans unlock access to many more HR services, ready to help you grow your business.

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Employers with more than 250 employees must report each year on the average difference in pay in their businesses between men and women, known as the ‘gender pay gap’.

Organisations that do not publish the data on time receive a warning notice from the Equality and Human Rights Commission (EHRC) threatening formal enforcement action, including enforceable action plans or investigations, if they are in breach of equality law. Then, if organisations do not implement the required actions, the EHRC can seek a court order to impose an unlimited fine.

In April and May 2023, the EHRC sent warning notices to 730 UK employers that had missed 2022-23 reporting deadlines. Most of these have now reported. But seven still have not, and they have been revealed as:-

ANKH Concepts Hospitality Management Limited

HUC South West Limited (*previously Devon Doctors Limited)

SGS Packaging Europe Limited

The Contact Company Ltd

Amaris Hospitality Limited

FRP Advisory Group Plc

Trust Payments Ltd

English public sector employers are required to provide their gender pay gap information by 30 March, with private and voluntary sector employers across Britain and some public sector bodies in England required to provide the information by 4 April.

For WorkSmarter clients with more than 250 employees, we are here to help if you need assistance with your gender pay gap reporting obligations. Don't end up on the above list next year please!

This is one of the largest awards ever made by an Employment Tribunal and serves as a
warning to employers to avoid discriminatory conduct.

Rachael Wright-Turner was dismissed from her job as Director of Public Service Reform at Hammersmith & Fulham Council after taking sick leave, due to suffering PTSD symptoms following previous work she had done elsewhere in relation to the immediate aftermath of the Grenfell Tower fire.

Harrowing YouTube Footage

Ms Wright-Turner had made the council aware of both her PTSD and ADHD diagnoses on the first day of her employment. However, later that day her line manager discussed the details of a harrowing YouTube video of the Grenfell Fire. Ms Wright-Turner became emotionally distressed.

Concerns were raised about Ms Wright-Turner’s performance several months later and she was accused of not disclosing her ADHD during the recruitment process. That night, when out with colleagues at a local pub, she suffered a severe panic attack and was admitted to A & E.

She was signed off work by her GP and her probation period was extended.

Ms Wright-Turner was subsequently dismissed from her £125,000 a year position. A letter from the council stated that they did not think she would be able to successfully complete her probation period.

Deliberately Misled

The Employment Tribunal case took five years between dismissal and final judgement and concluded that she had been harassed and discriminated against.

The Tribunal found that the Council had full knowledge of Ms Wright-Turner’s disabilities and that it had subjected her to significant detriments because of these.

It was found that the council deliberately misled the Employment Tribunal about the date of the probation extension. It also concluded that senior staff had conspired to doctor her dismissal letter, so it appeared to have been signed off before Ms Wright-Turner launched a grievance process.

Attempt to Evade Accountability

The Tribunal Judge noted the council’s deliberate omission of sickness absence from dismissal documents as a clear attempt to evade accountability. The decision to extend probation was ruled unfavourable treatment, related to the claimant’s disability-related sickness absence. There was no warning that the claimant was at risk of dismissal, no opportunity to make representations before this decision was taken, and no opportunity to appeal was given.

The Tribunal took the view that Ms Wright-Turner would never work again due to her treatment. The size of the £4.6m award took this into account, with substantial compensation included for lost pension and future earnings up to retirement age.

Hammersmith & Fulham Council believe the award is “excessive” and will be looking to appeal.

Takeaway For Employers

This case highlights issues around workplace discrimination and harassment, particularly around mental health issues, and shows how important it is to mitigate risk.

• Whilst it is rather obvious that it is against the law for employers to discriminate against an employee because of a disability, when an employer is terminating employment (irrespective of how short the employee’s service is) employers must always take care to ensure that the termination could not be said to be directly or indirectly discriminatory.

• The council failed to follow the ACAS code and their own Probation and Sickness Absence policies. Employers need to understand and follow their policies.

• When recruiting, employers are permitted to make limited enquiries about a candidate’s health or disability within limited reasons.

• Dismissals need to be well thought through, ensuring all processes are followed to ensure full compliance with current employment legislation and internal company policies. Dismissal letters are often the most important part of any Employment Tribunal case – employers should draft them on the expectation that they are going to be read by a Judge and in a public forum.

• Managers should receive comprehensive training, refreshed and updated regularly, so they’re compliant with anti-discrimination laws and can cultivate an inclusive work environment.

Make Compliance Easier

When it comes to workplace issues such as a disciplinary, grievance or dismissal, it’s essential to make sure your documents are up to date.

WorkSmarter’s Employment Document Library contains over 100 fully compliant HR documents, ready for every scenario. Continuously updated, we ensure that the templates you use are always fit for purpose.

WorkSmarter provides a wide range of HR tools to help companies grow and manage their staff. Our upgraded plans unlock access to many more HR services, ready to help you grow your business.

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It is perhaps important to note that there is often some lag between a NMW breach, and an employer making this list - this latest round includes breaches that took place as far back as 2015 in some cases.

From these 524 employers, nearly £16 million had to be repaid to over 172,000 workers together with financial penalties of up to 200% of the underpayment.

The Department for Business and Trade identified that the main reasons for underpayment of the NMW included:

• Deductions from wages for items such as food, uniform, equipment, childcare costs and salary sacrifice schemes.

• Unpaid working time, such as where additional work was carried out before and after a shift, where clock-in times had been rounded up, where travel time was not paid, and where a salaried hours worker worked in excess of their basic hours.

• Failure to pay the correct rate to apprentices, failure to pay the uprated NMW rate, failure to correctly apply the accommodation offset and failure to pay a worker in accordance with the correct work type.

It is therefore clear to see that many of these NMW breaches are more of the technical or inadvertent nature than a blatant failure to pay the proper hourly wage, but given the significant PR consequences of making the list all employers need to ensure that they are fully up to date with the latest NMW (and NLW) regulations.

The commitments of interest to employers include:

• More apprenticeships would be offered via a new generation of 'Technical Excellence Colleges' and by transforming the apprenticeship levy.
• Delivering a genuine living wage.
• Banning zero hours contracts.
• Ending fire and rehire.
• Creating jobs in clean energy and construction.

No specific detail is available on these commitments at present, though one assumes more information will be revealed in the coming months as the political parties progress their election campaigns. In particular, the highlight of the above commitments is the promised ban to zero hours contracts: quite how that would work in practice (and whether it is at all sensible) is likely to be the source of fierce debate.

Watch this space!

• irregular hours workers and part-year workers
• carry over of leave
• carry over of leave affected by Covid-19
• rates of holiday pay and annual leave; and
• rolled-up holiday pay

The full guidance is here.

As the Chancellor unveiled 110 ‘growth measures’ earlier this week, the key announcements of interest to employers, the self-employed or those with an interest in employment law may well be:-

- National Living Wage to increase to £11.44, with the age threshold reduced to 21 year-olds

- Employee national insurance contributions reduced from 12 to 10% with effect from 6 January 2024

- Inflation predicted to reduce to 2.8% by end of 2024, which will be a factor employers consider when assessing any 2024 pay review

- £50 million of investment into apprenticeships in engineering and other key growth sectors

- Abolished Class 2 national insurance and cutting Class 4 national insurance contributions by 1% for the self-employed

- Full expensing to be made permanent for IT, machinery and equipment investment

- New welfare benefits reforms designed to increase the number of people in work

It was an Autumn Statement said by many to offer some stability and balance, promising calmer financial waters in 2024. Others lamented the lack of tax cuts for employers and businesses, though they will surely follow in the full, spring Budget.

Many employers will need to grapple with how they meet the new rates of National Living Wage and the new holiday pay regime - WorkSmarter will be here to help.

The Government has today confirmed that:

- it will introduce 'rolled-up' holiday pay for those workers or employees who work irregular hours or part-year workers (which includes term-time workers)
- the 12.07% accrual method will be used for irregular hours/part-year workers (and thus the 52-week reference period and average pay approach developed by Harpur Trust will be short-lived)
- it will legislate to clarify what must be included in calculating "normal remuneration" for holiday pay purposes
- it will not be merging the current 'basic' (4 weeks) and 'additional' (5.6 weeks) annual leave entitlements, allowing employers to pay (if they wish to) normal remuneration for 4 weeks only and basic rate of pay thereafter

It is yet to be confirmed when the above will become the law, but reasonable expectations would be that it will be in force by 1 January 2024.

The previous rehabilitation periods were:

- community order – one year beginning with the last day on which the order had effect
- custody of six months or less – two years
- custody of more than six months and up to 30 months – four years
- custody of more than 30 months and up to four years – seven years
- for offences with custodial sentences of more than four years, the conviction was never spent.

The new rehabilitation periods are as follows:

- community order – the last day on which the order had effect
- custody of one year or less – one year
- custody of more than one year and up to four years – four years
- custody of more than four years – seven years.

It should be noted that convictions for serious sexual, violent, or terrorist offences continue to never be spent, and stricter disclosure rules will continue to apply to jobs that involve working with vulnerable people where enhanced DBS checks are required.

The logic for these changes is that the Government believe too many reformed ex-offenders are being denied employment opportunities, and that these changes will immediately impact upon 125,000 people sentenced in 2022 alone. Increasing the number of ex-offenders who can find employment is said to reduce reoffending, which costs the taxpayer £18 billion each year.

The Act introduces a new duty on employers to take reasonable steps to prevent sexual harassment of their employees and also grants Employment Tribunals a power to increase compensation by up to 25% where an employer is found to have breached the new duty to prevent sexual harassment.

Whilst the new legislation will be heralded by many, some commentators remain disappointed as the Bill originally had provided that an employer would have to take ‘all’ reasonable steps to prevent sexual harassment of their employees in the course of employment. However, the Bill was ultimately amended as a result of House of Lords intervention to require that employers must take ‘reasonable steps’, rather than ‘all reasonable steps’, to protect employees from sexual harassment.

Furthermore, the Lords objected to the re-introduction of an employer’s liability for the harassment of employees by third parties in the course of employment (which was repealed in 2013).

The Act will not come into force until one year after the day on which it was passed, so as to give all employers a year to review, consider and prepare for their new legal duty. Many employers will of course already take the view that they take reasonable steps (if not all reasonable steps!) to prevent sexual harassment in the workplace and that this new duty does little to change their position - but many employers will no doubt want to take the next year to ensure that they have the best possible training, processes and policies in place.

Angela Rayner, Shadow Deputy Prime Minister, referred to Labour's "New Deal for Working People", reiterating her pledge to introduce the legislation within the first 100 days in power, if elected. Labour would ban zero hours contracts, end "fire and rehire", improve sick pay and grant "basic rights" from day one. In addition, she said that the Low Pay Commission's remit would be expanded so that the national minimum wage would for the first time take account of the cost of living. Unions would be enabled to "stand up for their members" and collective bargaining boosted. All of these significant proposals, inevitably, lack any detail at this stage - to cite just one example, it is not at all clear how one would ban zero hours contracts?

Further proposals confirmed included a commitment to amend the Equality Act 2010 to introduce a duty on employers to take reasonable steps to stop sexual harassment before it starts, together with a new statutory code of practice setting out the obligations on employers. These could include having effective and well-publicised policies and procedures, providing appropriate training and assessing foreseeable risks. Employers would be liable if they were informed of any sexual harassment and did not take appropriate steps or had not taken measures to prevent it in the first place. Emily Thornberry, Shadow Attorney General, also announced that women who report sexual harassment at work should get the same protection as other whistleblowers.

Anneliese Dodds, Shadow Women and Equalities Secretary, announced that Labour would honour the UN Convention for the Rights of Disabled People, introduce mandatory disability pay gap reporting for larger businesses and facilitate workers securing reasonable adjustments from their employers. A new Race Equality Act would tackle structural racism, including the issue of low pay for ethnic minorities, with fines for organisations not taking appropriate action on their pay data. Following Baroness O'Grady's review into tackling the gender pay gap, action would be taken to make more progress, more quickly - though, again, it is quite unclear how that would operate in practice.

As we near closer to a general election, employers and employees can expect the issue of workplace reform to be a significant part of all leading parties' manifestos. Watch this space...

The NLW is the highest rate of the national minimum wage (NMW), currently applicable to workers aged 23 and over. The age threshold is due to be lowered to 21 in April 2024, which is a significant development that might catch many an employer out.

The government normally increases the NLW and NMW in line with the LPC's recommendations and the Chancellor's comments this week would suggest that is almost a certainty this time around.

The Act will amend the Employment Rights Act 1996 to give workers and agency workers the right to request a predictable work pattern where:

- There is a lack of predictability as regards any part of their work pattern (fixed term contracts of 12 months or less are presumed to lack predictability).
- The change relates to their work pattern.
- Their purpose in applying for the change is to get a more predictable work pattern.

Two applications may be made in a 12-month period and applications may be rejected on statutory grounds. A minimum service requirement to access the right, expected to be 26 weeks, will be specified in regulations. Claims will be possible based on procedural failings by the employer, unlawful detriment and automatic unfair dismissal. Regulations will provide further details of the statutory regime.

The Predictable Terms Act and secondary legislation are expected to come into force approximately one year after Royal Assent so that employers have time to prepare - September 2024 would be a reasonable estimate.

Acas have confirmed that they will produce a new code of practice to provide guidance on making and handling requests, the draft of which will be available for consultation in the coming month or so.

As ever, WorkSmarter will be on hand to assist.

This week saw the starting shots fired. Speaking at the TUC annual conference , Angela Rayner, Labour's deputy leader, stated that Labour would introduce an Employment Rights Bill within the first 100 days of entering office, promising that this was a "cast iron commitment".

Angela Rayner set out Labour's plans on the following areas:

- Trade unions. The Strikes (Minimum Service Levels) Act 2023 and the Trade Unions Act 2016 will be repealed. Trade union laws will be updated "to make them fit for the 21st century" and to strengthen the role of trade unions in society, as laws protecting union representatives and officials do not take account of the technological advances of the last ten years. Trade unions will be given a new right to access workplaces, allowing them to meet, represent, recruit and organise members. The statutory recognition process will be simplified so that gig economy and remote workers can meaningfully organise through trade unions. Rules to allow trade unions to use secure and private electronic balloting when engaging, communicating with, and polling members will be levelled up. Labour will also boost collective bargaining, starting with fair pay agreements in adult social care.

- Blacklisting. Updated regulations will outlaw the use of predictive technology for blacklisting and safeguard against singling out workers for mistreatment or dismissal without any evidence of union interaction. Third parties will also be made liable for blacklisting they carry out on behalf of employers.
Employment tribunals will be given the power to order destruction of lists, whether digital or otherwise.

But whilst the trade union proposals are obviously vital to Labour's manifesto, it was perhaps the more general changes referred to which caught the eye.

- Other measures. Rayner promised plans to ban zero-hours contracts, to bring in a "proper living wage that people can actually live on", to end fire and rehire (the practice of terminating an employment contract for Some Other Substantial Reason and offering re-engagement on new terms), to support family-friendly working, to strengthen sick pay by making it available to all workers including the lowest earners from day one, to end the gender pay gap faster, address unequal pay, tackle sexual harassment at work and put mental health on a par with physical health.

These other measures, reeled out with pace but no real detail, are of course striking in their purported significance. Is it really possible or desirable to ban zero-hours contracts? How does one end the gender pay gap? How do you 'tackle' sexual harassment - these are all bold ambitions but without any detail, which one assumes will be forthcoming as an election manifesto unfolds, it is far too early to provide any meaningful analysis, either for or against the proposals.

WorkSmarter will keep you updated!

This week, the Employment (Allocation of Tips) Act 2023 came into force, though the good news for employers is that whilst certain 'enabling' aspects of the Act are now live (largely to allow the Secretary of State to issue a code of practice), the substantive provisions of the Act are not expected to be brought into force before May 2024 (although the government will confirm the precise date later in 2023).

The Act will require employers to fairly allocate tips over which they exercise control or significant influence (qualifying tips) - such as those service charges which are so regularly added to the patrons' bill these days or any tips paid by credit/debit card - and pay them to workers in full within a month of payment by the customer. Where tips are paid on more than an occasional and exceptional basis (such as a cash payment made by a customer to a particular employee), an employer must have a written policy, available to all workers, setting out how qualifying tips are dealt with. An employer's tipping record will be available to view, assisting prospective employees with their choice of employer in the sector.

The Government believe that the Act will see an extra £200 million a year go back into the pockets of staff, suggesting that currently many employers do not pass on in full (or at all) the tips and service charges that are being received from customers.

Some affected employers are expressing concerns that the administrative burdens placed upon them will be another hammer blow to their industry - and employment lawyers are expecting to see a lot of Tribunal claims, not least because claims relating to the allocation of tips will be able to be brought up to 12 months after the alleged failure to comply (unlike the usual 3 month limitation on Tribunal claims).

When section 1 of the Employment Relations (Flexible Working) Act 2023 comes into force, sections 80F (right to request contract variation) and 80G (employer’s duties in relation to application) of the Employment Rights Act 1996 will be amended so that:

• When making a request, an employee will no longer have to explain what effect, if any, the employee thinks their requested change would have on the employer and how any such effect might be dealt with.
• The current limitation restricting an employee to one request in any 12-month period will be revised. An employee will be entitled to make two requests in any 12-month period. However, it will not be possible to make a further application while another application to the same employer is already proceeding.
• An employer will not be permitted to refuse a request unless the employee has been consulted.
• The time for an employer to make a decision will be reduced from three to two months (although it will remain open for the parties to agree a longer period).
• These amendments will apply in respect of an employee's entitlement to make a request, and any request that they make, once section 1 comes into force. In determining the number of requests an employee has made during a 12-month period, a request made before section 1 comes into force (and during that period) will be included.

Whilst announcing that the Bill had received Royal Assent, the government referred to the right to request flexible working becoming a "day one" right. While this is not an amendment made by the Act, the announcement reiterates previous government statements that the current requirement for an employee to have at least 26 weeks' continuous employment by the date of a request will be removed by secondary legislation. The government expects section 1 of the Act and secondary legislation to come into force in approximately a year's time, to give employers time to prepare.

WorkSmarter will update their suite of template documents regarding flexible working requests (in the Document Library) to reflect these changes, once the Act becomes law, most likely in 2024.

The report outlined that Acas was involved in 621 collective disputes between employers and groups of workers. This figure amounts to a 22% increase compared to the year 2021 to 2022, and the leading cause of the disputes was pay. The organisation's individual dispute resolution service dealt with 105,754 notifications for early conciliation. In over 72,000 cases staff helped to find a resolution. The report estimates that this saved the UK up to £100 million due to resulting reduced demand on employment tribunals - though this saving still dwarfs the estimated total cost of workplace conflict, which is said to be at £28.5 billion per year.

Employers and employees seeking advice on workplace rights continue to turn to the Acas website and helpline. Acas's web pages were accessed over 14.4 million times in 2022 to 2023, and employers and employees made nearly 650,000 calls to Acas's helpline. Following helpline calls, 87% of customers were reportedly able to take clear action.

Acas Chief Executive Susan Clews put the increased demand down to "high inflation, the cost-of-living crisis and staff shortages" which she said has "seen workplace tensions and large-scale disputes dominate the headlines, which have led to an increase in demand for our dispute resolution services."

WorkSmarter clients may of course access our Live HR Support for the first port of call in helping them with their workplace issues.

The mental health of 10% was significantly negatively affected, and 37% reported a moderate impact. Only 17% of employees said their mental health has not been affected at all.

As a result, employers are being advised by Acas to be approachable and available to employees and to encourage them to talk if they are experiencing problems. Keeping in regular contact with teams, respecting confidentiality, and clear communication on the internal and external support available are also recommended. Some adjustments may be helpful to employees who are struggling, for example, working more flexibly to save on costs. Workers are advised to talk to colleagues or friends if they are struggling with their mental health, to be open with their managers about their situation and to check what support may be available at work.

Acas Chief Executive, Susan Clews, said:

"The rise in the cost of living has been challenging for many people and our poll reveals that it has had an adverse impact on the mental health of a substantial number of workers in Britain. Employers that create an environment where staff can openly talk about their mental health are better equipped to support them at work. Offering practical tips such as signposting to financial advice can also help. Employees should also take steps to look after their own mental health and have coping strategies in place. Acas has advice and training on how to support and manage mental health and wellbeing at work."

The HMRC investigations into these breaches concluded between 2017 and 2019, so it is to be noted that there is a considerable time lag between the offence and the public naming of the employer. The named employers were ordered to repay almost £5 million to the 63,000 workers affected, and have faced penalties totalling almost £7 million. The most common forms of underpayment were making deductions from wages (39% of employers) or failing to pay workers properly for their working time (39% of employers). The incorrect apprenticeship rate was found to have been paid by 21% of employers.

The employer with the highest value underpayment of over £1 million to 17,607 workers, WH Smith, claimed the error was due to a misinterpretation of how the legislation related to its company uniform policy. Marks & Spencer explained that their error was due to a technical issue which led to temporary workers not being paid within the correct time periods. A payroll error identified in 2018, which affected some Argos store workers and drivers before Sainsbury's acquisition of Argos, was said to be the cause of Argos's breach.

The government say that they name the employers to send a clear message that no employer is exempt from paying workers the statutory minimum wage. Additional advice for employers about breaches and what employers should do to make sure they correctly pay their workers has also been published. The contrary view is that the naming and shaming list is a rather crude and unfair mechanism, which may focus more on employers whose record keeping allows HMRC to identify technical breaches rather than seek to penalise those employers who are genuinely exploiting and underpaying employees.

The Workplace (Health, Safety and Welfare) Regulations 1992 (SI 1992/3004) require employers to ensure that temperatures in all workplaces inside buildings are "reasonable". While a limit is set on minimum workplace temperatures of 16 degrees (or 13 degrees if the work involves severe physical effort), there is no limit on the maximum temperature. Despite the absence of a legal limit, the HSE is calling on employers to take action to protect those working inside and outside in extreme heat. Heat is classed as a hazard and employers must, when assessing health and safety risks to their workers, include risks from extreme weather, such as heat waves.

The HSE promotes a number of simple and affordable measures that employers can take. These include altering working patterns so workers can work at cooler times of the day, relaxing dress codes, providing free access to drinking water and sharing information about the symptoms of heat stress and what to do if someone is affected. The HSE also advises placing workstations away from direct sunlight and heat sources, insulating hot pipes and machinery, and providing weather-appropriate personal protective equipment.

During 2022, 38 MPs signed an early day motion calling on the government to introduce legislation to enforce a maximum workplace temperature while unions also called for similar action at the time and will no doubt do so again this summer. The government has given no indication that it intends to act, which means currently employers must pay regard only to the actual legislation and the non-binding guidance which HSE have released this week.

There are numerous exceptions to this proposition however and this week I was amused by a judgment which emerged from Nottingham Employment Tribunal. The claimant in the case had failed in her claims for constructive dismissal and discrimination, having been represented by a gentleman who described himself as a "retired solicitor".

The Tribunal had found the claimant's evidence to be "totally unreliable", but also concluded that her representative had:

(i) complained about the arrangement of the furniture in the court room
(ii) complained about not being able to look witnesses in the eye when cross-examining
(iiI) tried to argue at one stage that he did not in fact represent the claimant (once he realised that a costs order was possible)
(iv) failed to comply with numerous orders in the case
(v) usually begun his cross-examination of witnesses with an irrelevant recap of his own experience in local government
(vi) regularly asked leading questions of his own witnesses (not allowed!)
(vi) questioned the witnesses in such a long winded way that they usually lost complete track of the question and, perhaps most amusingly of all,
(vii) made a snoring sound in response to an answer from a witness that he did not like.

The Tribunal concluded this was "the most outrageous conduct" and that both the claimant and her representative were "in the main unreasonable and on occasion abusive". As such, they awarded the employer every penny of the £20,000 in costs that they claimed. It is to be noted that it is the losing claimant that has to pay this £20,000, not the "retired solicitor".

A timely reminder therefore to those who may find themselves in Employment Tribunal litigation that the system is not entirely a no-costs regime, that parties need good advice and representation and - ideally - representation from specialist employment lawyers! Should any WorkSmarter clients find themselves in this position, we can refer you to such specialists to ensure you are taken proper care of.

Between January and March 2023, the employment rate increased to 75.9%. This was driven by more part-time employees and self-employed workers. The inactivity rate, which is the key measure of people not in work, reduced to 21%. However, the unemployment rate rose slightly to 3.9%.

The figures have also shown that public sector pay is growing at the fastest pace for around 20 years, while the squeeze on pay remains elsewhere because wage increases fail to keep up with rising prices.

For employers struggling to know how to best deal with long-term sickness, WorkSmarter are here to help...