Government’s Plan to Make Work Pay – what next
The UK Government’s proposals on employment are far-reaching.
The Plan to Make Work Pay is the unabridged version of the proposed changes. As it stands, the whole document remains inside the scope of the government’s plans. Labour’s Baroness Jones recently commented: "The Government is committed to delivering the Plan to Make Work Pay in full. Ministers are identifying the most appropriate delivery mechanisms for the commitments in the Plan...”. However, it’s worth noting that the practical realities of putting legislation through parliament can often mean changes in timing or detail not anticipated at the election-pledge stage.
The upcoming Employment Rights Bill will contain some of these pledges but, as yet, it's not been confirmed what the government intends to enact through the Bill directly versus through other potential legislative routes. The confirmed intention to repeal the Strikes Act 2023 will form part of the bill. The further reported repeal of the Trade Union Act 2016 may also be contained in the document.
Other changes which could form part of the Employment Rights Bill include the ‘right to disconnect’ (empowering employees to not engage with work correspondence when not working) and items relating to zero-hours contracts, fire and rehire, day-one rights and extended dismissal protection for women returning from maternity leave.
Whatever we see in the bill, any consultation, drafting and delivery of such changes will reach far beyond mid-October 2024 (when we expect the bill to be published).
There are, however, some parts of the Plan to Make Work Pay that could be brought in by April 2025.
In the first instance, the Low Pay Commission has now responded to its renewed remit from Government. The LPC has advised that employers should prepare for changes in the April 2025 National Minimum and National Living Wage rates to account for the cost of living and inflation. Full details are provided in the employment law timetable.
On statutory sick pay, commentators agree that despite the need for primary legislation in this area, the four-day qualifying period and lower earnings limit requirement for such pay could also be removed by April 2025.
Further, before the end of 2025, the review of parental leave may have commenced. Labour has repeatedly stated that it would deliver this review within the first year of government with the aim of making parental leave a day-one right.
The CIPD offers members an overview of the plan and will be providing ongoing legislative information in the employment law timetable.
Laws to improve workers’ rights coming into force
Meanwhile, there are two confirmed laws over the coming months...and one to keep your eye on...
Imminent change is confirmed after the government passed the commencement regulations for the Employment (Allocation of Tips) Act 2023. From 1 October 2024, the statutory code in this area will therefore be in place.
It is worth noting that ‘tipping’ under the legislation includes tips, gratuities and service charges (including both automatically added and other voluntary service charges), and the code therefore does not only apply to industries such as catering, beauty and cab drivers, it could arguably apply to any industry in which service charges are processed via the employer (for example).
Employers and employees may also note there is a limit in the scope of the code which reads “[i]f a worker receives and keeps a cash tip, with no employer control or involvement, the tip is out of scope for the Tipping Act and this code.”
Employers who fall under the rules will need to comply with the code with the likes of a written policy on fair tip allocation and a method to maintain records of tip acquisition and distribution from this point forth (these records must be maintained for three years on a rolling basis). Non-compliance with the code would allow for a potential 25% uplift on any tribunal claim. The CIPD provide a factsheet outlining essential information on employee reward in this and other areas.
Later in October, all employers will also need to be ready for the Worker Protection (Amendment of Equality Act 2010) Act 2023. Covered in our previous round-up, the new law means that from 26 October 2024, employers have a positive duty to take ongoing actions to prevent sexual harassment of their employees by staff and third parties
The CIPD provides guides for people professionals and people managers on ways to ensure that practices and procedures are in place to ensure compliance with this law.
The scrapping of the Workers (Predictable Terms and Conditions) Act 2023 in September 2024 is also worth note. The Act meant that qualifying workers on irregular shift patterns would have the right make two requests every 12 months for predictable patterns of work.
As the right to reasonable notice of work schedules is one of Labour’s manifesto commitments, this might be a case of ‘watch this space’.
Tribunal decisions to consider
Finally, we highlight two tribunal cases from recent months testing the parameters of employment law.
In Groom v Maritime & Coastguard Agency (2024), the EAT held that a volunteer was a worker for certain activities where he was entitled to remuneration. The ‘certain activities’ in this case were governed by a Code of Conduct setting out minimum levels of attendance and renumeration for costs related to disruption to personal life and employment.
The EAT concluded that in these circumstances, a contract came into existence. Whether the claimant was a worker when he was doing unremunerated activities remains an open question.
In Bicknell and Anor v NHS Nottingham and Nottinghamshire Integrated Commissioning Board (2024), the question of commissioning activity falling under TUPE was once again considered. The EAT held that there was no business transfer under TUPE as commissioning is not seen as an economic activity under the premise set by Nicholls and Anor v London Borough of Croydon and Ors (2018). The judge commented “[i]f the analysis in Nicholls is wrong, that needs to be corrected by the Court of Appeal.”
