magazine
42
Employment Law & You
Employment law is forever changing,
and in this respect it looks as though
2015 is going to be no different to last
year. So what are some of the changes
in the pipeline that employers ought
to be preparing themselves for?
1. Pensions Auto Enrolment
Many companies are currently looking
for advice on how to ensure their staff
are enrolled on a suitable pension
scheme. However, it is widely reported
that demand will outstrip supply and
there are also concerns over how robust
the schemes are. This is one development
that employers will need to keep front of
mind over the next 12 months.
2. Zero Hours Contracts
Whether employers like it or not,
changes will be brought in to make
these forms of contract work better for
employees. The findings of a Dept. of
Business review into employee status
in the British workforce is due in March
2015, but it is likely that changes will
include a ban on exclusivity clauses.
3. The Small Business, Enterprise &
Employment Bill
The Small Business, Enterprise and
Employment Bill (going through
Parliament at the time of going to press)
also has changes to zero hours contracts,
plus a number of other provisions,
including improvements to whistle-
blowing procedures; greater penalties for
employers who pay below the national
minimum wage; and financial penalties for
non-payment of industrial tribunal awards.
4. Increases in Holiday Pay
calculations
Another thorny issue for employers,
holiday pay has received a fair amount
of coverage in recent weeks. Following
the EAT ruling in November, further
clarification of what is included
in ‘normal pay’ is expected. More
information should come out of the Lock
case tribunal on including commission in
holiday pay calculations, as well as the
government’s task force on backdated
pay. These developments will give
employers a much clearer idea of how to
address this subject.
5. Shared Parental Leave
Applying to babies born on or after the
5th of April 2015, the new rules raise a
number of questions that could limit
take-up. These include issues around the
implications for enhanced maternity
schemes and the ability of employers
to check information with a partner’s
employer.
6. Fit For Work
If any of your staff have been off for
more than four consecutive weeks, you
may well have heard of this already.
Delayed from late 2014, but due to be
implemented fully at the beginning of
this year, Fit For Work is designed to help
employees and employers communicate
about long-term sick leave and get
access to occupational health services
and support so that staff return to work
as soon as possible.
Party politics and employment law
With a general election coming up,
it wouldn’t be sensible to look at
forthcoming changes to employment law
without considering the main parties’
policies and what you should expect if
one or the other gets into power.
David Lester, Founder of Citrus HR,
outlines key employment law changes
on the cards for 2015
Conservatives.
The Conservative
bench is looking for two main things
should they be re-elected: the afore-
mentioned ban on exclusivity clauses in
zero hours contracts and the creation of
3 million apprenticeships subsidised by
benefits cuts.
These don’t represent a massive
shake-up, but offer some hope to
employees looking for more security
and for employers that want to take
on apprentices but aren’t sure they can
afford them.
Employers should also bear in mind
that the Conservatives are pushing
for legislation in the summer to make
caste discrimination a form of race
discrimination, which has implications
for workplace equality.
Labour.
Labour has been very
vocal in the last few weeks, with Ed
Miliband taking on Sports Direct’s zero
hour employment practices and, more
recently, the agency workers sector. It
proposes a number of policy changes,
including:
n
Raising the National MinimumWage
to £8.00 per hour by 2020;
n
Banning exploitative zero hours
contracts;
n
Having as many young people on
apprenticeships as currently go to
university by 2025; and
n
Changing agency workers legislation,
with tougher regulation of employment
agencies via licensing to deal with
the unscrupulous behaviour of some
employment agencies in the wake of a
rise in temporary agency staff since 2007.
Whilst two of these policies are
similar to Tory ones, and the first
is simply a statement of where the
coalition’s changes to minimum wage
would appear to be going anyway, they
offer a clear message that Labour is on
the side of the employee.
The stance on employment agencies
is something very different and could see
more employers having to employ staff
on permanent work contracts rather than
using agencies and paying lower rates of
pay – something that is sure to have an
impact across the nation.
With so many amendments and new
policies on the cards, it is vital to be
prepared for any changes by keeping up-
to-date with the latest news.
Citrus HR is the UK’s most
comprehensive employment support
service for new and smaller businesses.
What To
Expect
In 2015
