New law offering greater protection in redundancy processes during pregnancy and after return from family leave

The Protection from Redundancy (Pregnancy and Family Leave) Bill received Royal Assent on 24 May 2023, becoming the Protection from Redundancy (Pregnancy and Family Leave) Act 2023.  The new law will protect pregnant women and those returning from certain types of family leave in redundancy situations.  In this briefing, we outline where things currently stand and what steps employers should take next.

What is the background?

Currently, employees absent on either maternity, adoption or shared parental leave are afforded special protection in redundancy situations.  The law provides that before making a woman who is on maternity leave (or an employee on adoption or shared parental leave) redundant, an employer must offer a suitable alternative vacancy to them, where one is available.  In other words, the employee moves to the front of the queue for such roles, ahead of other colleagues and has a right of first refusal of such a role.  If an employer fails to comply with its obligations in this respect, the employee may be able to bring an automatic unfair dismissal claim.

In 2019, the Government consulted on extending this protection to pregnant employees and those who had recently returned to work following a period of maternity, adoption or shared parental leave.  The Queen’s Speech delivered at the end of 2019 outlined plans for a new Employment Bill which would introduce these new rights.  However, the Employment Bill did not materialise.  Instead, the Government backed a Private Members’ Bill – the Protection from Redundancy (Pregnancy and Family Leave) Bill – which aimed to deliver these changes.

What rights and protections will employees be given?

The Protection from Redundancy (Pregnancy and Family Leave) Bill received Royal Assent on 24 May 2023 and became the Protection from Redundancy (Pregnancy and Family Leave) Act 2023.  The Act is due to come into force on 24 July 2023 and allows for regulations to be made which would give:

  • pregnant employees who are at risk of redundancy priority for any suitable alternative vacancy that is available from the point that they notify the employer of their pregnancy; 

  • employees returning from maternity, adoption or shared parental leave who are at risk of redundancy priority for any suitable alternative vacancy that is available following their return to work.  It is anticipated that returners from maternity or adoption leave will be protected for six months after their return to work, but that the protected period may be different for shared parental leave given that it may be taken in discontinuous blocks; and

  • employees the right to claim automatic unfair dismissal claim where an employer fails to comply with its obligations regarding offering suitable alternative vacancies and the employee is dismissed as a result. 

In practice, this will mean that a woman who notifies her employer of her pregnancy at the three-month stage and then takes 12 months’ maternity leave would be protected for a total of 24 months (i.e. six months’ protection during pregnancy plus 12 months’ protection during maternity leave plus a further six months’ protection upon the return to work).  At present, such a woman would be protected for the 12-month maternity leave period only.

However, the precise scope and mechanics of these new rights and protections will be set out in separate regulations.  It is not yet known when these will be laid before Parliament, although the next General Election must take place by the end of January 2025.

What steps should employers take now?

Although employers will need to await the publication of the regulations to understand the finer detail of how the rights will work, employers should consider the following policy issues now:

  • Who will have responsibility for updating any relevant staff-facing procedures and internal guidelines on how to manage a redundancy process?

  • Who will deliver training to members of HR and managers who have responsibility for redundancy processes? These groups will need to understand the new rules, know how to apply them and be clear about the consequences of non-compliance.

Protection from Redundancy (Pregnancy and Family Leave) Act 2023

BDBF is a leading employment law firm based at Bank in the City of London. If you would like to discuss any issues relating to the content of this article, please contact Amanda Steadman (AmandaSteadman@bdbf.co.uk) or your usual BDBF contact.


BDBF’S EMPLOYMENT LAW TRACKER FOR 2023 AND BEYOND

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Our tracker highlights new domestic legislation and other key proposals for legislative reform. 

Please click the image below to view the full tracker document: 

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If you would like further information, or to discuss how to prepare for any of these changes, please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

 

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Reflecting on the employment law highlights from 2022

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What are the employment law highlights from the last 12 months?  In this briefing, we reflect on some of the most interesting and important cases and developments for employers to remember as the year draws to a close.

COVID-19

  • Employers learnt to live with Covid: on 1 April 2022 the last Covid-related restrictions were withdrawn, and the Government moved to the next phase of the pandemic – “living with Covid”.   In this briefing, we discussed the impact of changes affecting the workplace, including the end of free Covid testing and the removal of the self-isolation requirements and special health and safety rules.
  • Dealing with reluctant returners: as employers learnt to live with Covid, the focus quickly shifted to getting staff back into the workplace. On 26 April 2022, we held a webinar looking at how employers should deal with staff who were reluctant to return to the workplace after working from home during the pandemic.  You can access both the recording of that webinar, together with the slide presentation used on the day, here.
  • The emergence of “Long Covid”: with an estimated 1.8 million people in the UK now suffering with Long Covid, employers also had to learn how to manage staff with the condition.   In this briefing, we considered when Long Covid may qualify as a disability and the steps that employers may need to take as a result. We also looked at Burke v Turning Point Scotland, where it was decided that an employee who had suffered with Covid symptoms for around nine months was  That decision can be contrasted with the outcome in Quinn v Sense Scotland, where it was decided that an employee who was dismissed shortly after contracting Covid was not disabled, even though she did eventually develop Long Covid.
  • Disputes from the height of the pandemic reached the Employment Tribunals: we considered the case of X v Y, where an Employment Tribunal decided that a claimant’s fear of catching Covid, and her belief that she needed to protect herself and her partner from catching it, was not a protected belief for the purposes of discrimination law. We also looked at the case of Rodgers v Leeds Laser Cutting Ltd, where the EAT upheld a decision that it had not been unfair to dismiss an employee who refused to attend work because he was worried about catching Covid and giving it to his vulnerable children.  This decision was appealed, and the Court of Appeal’s decision is expected soon.

Equality

  • Disability and secondments: we discussed the case of Judd v Cabinet Office where the EAT upheld a decision that an employer’s withdrawal of an overseas secondment opportunity on health and safety grounds was not disability discrimination.  The appeal turned on whether the employer had acted disproportionately in withdrawing the opportunity, and the EAT decided that there had been no viable alternatives available to the employer.
  • Breastfeeding, baldness and sex-related harassment: in Mellor v MFG Academies Trust an Employment Tribunal held that a woman suffered harassment related to sex when her employer failed to provide a private room for her to express breastmilk. The employee was forced to express milk in the toilets or her car, which had the effect of creating an unwanted, degrading or humiliating environment for her.  In Finn v The British Bung Manufacturing Company Limited an Employment Tribunal held that calling a male employee “bald” on just one occasion was harassment related to sex.
  • Gender critical belief discrimination: in the long-running and high-profile case of Forstater v CGD Europe and others an Employment Tribunal ruled that an employer directly discriminated against and victimised a worker who lost her role after she had made straightforward statements of her gender critical beliefs on Twitter and in the workplace. In our briefing we outlined the practical steps that employers could take to manage a potential clash of rights between gender critical and trans workers within the workplace.
  • Sham redundancy was discriminatory and subject to Acas Code: we considered the decision in Coulson v Rentplus Ltd, where the EAT upheld a decision that the Acas Code of Practice on Disciplinary and Grievance Procedures applied to a sham redundancy dismissal that had been tainted by discrimination.  The Code had been completely disregarded, meaning that a maximum 25% uplift to the compensation was justified.
  • Employer ordered to conduct and publish an equal pay audit: in Macken v BNP Paribas London Branch – for the first time – the Employment Tribunal ordered an employer who had lost an equal pay claim to conduct, and publish the findings of, an equal pay audit showing whether it was paying men and women equally where required.  The employer was also ordered to pay compensation of over £2 million to the female banker who brought the claim.
  • Pay reporting developments: pay reporting was back in the spotlight this year. In this briefing from March, we looked at the announcement that mandatory ethnicity pay reporting would not be introduced and, instead, that employers would be encouraged to report voluntarily on ethnicity pay.  In April, the latest round of gender pay gap reports were published (following a hiatus during the pandemic) and in this briefing we looked at what the latest figures revealed and what the future holds.

General HR issues

  • Recruitment and CV lies: in R v Andrewes the Supreme Court ordered the confiscation of almost £100,000 from a senior executive who committed “CV fraud” by making false representations and failing to disclose the truth about his qualifications and experience when he applied for and secured several senior posts.
  • Holiday pay: in the case of Smith v Pimlico Plumbers, the Court of Appeal held that a worker was entitled to claim compensation for unpaid holiday covering the entire period of his engagement. This included both holiday that he did not take, as well as holiday that he did take but which had been unpaid. And in Harpur Trust v Brazel the Supreme Court ruled that permanent part-year workers (such as term-time workers) were entitled to 5.6 weeks’ holiday per year, regardless of how many weeks they actually worked per year.  Further, if they worked irregular hours, their holiday pay must be calculated as an average of pay earned over a reference period – any other method of calculation is not permitted.
  • Sick pay and malingering: in a decision which highlights the perils of jumping the gun, the EAT decided in Singh v Metroline West Limited that an employer had committed a fundamental breach of contract when it withheld company sick pay from an employee who was suspected of malingering, but where no investigation had been undertaken into whether this was the case.
  • Safety at work and practical jokes: in a welcome decision for employers, the Court of Appeal decided in Chell v Tarmac Cement and Lime, that an employer was not liable for an employee’s practical joke which injured a contractor working at its site.  The Court decided that the prank had not been done “in the course of employment” and it was not realistic to expect employers to take steps to prevent horseplay in the workplace.
  • Suspending staff: the Advisory, Conciliation and Arbitration Service published new guidance for employers on how to handle staff suspensions. In particular, it focuses on suspension during investigations. We outline the key points in this briefing and consider when suspension is appropriate, what alternatives might exist and what employers should do to support suspended workers.
  • Non-compete restrictions: unusually, in the case of Law by Design v Ali, the High Court upheld a one-year non-compete restriction preventing a solicitor from going to work for a competitor.  The employer’s position was helped by the fact that it had issued the Service Agreement containing the covenant at the same time as awarding a pay rise.  This demonstrated that payment was made in exchange for the employee’s acceptance of the new covenant.

Termination

  • Dismissal for conduct related to whistleblowing: in a decision helpful to employers, the Court of Appeal decided in Kong v Gulf International Bank (UK) Ltd that the dismissal of a whistleblower for conduct closely related to her whistleblowing disclosure was “genuinely separable” from the disclosure itself and, therefore, was not automatically unfair.
  • Dismissal for raising multiple grievances: in the case of Hope v British Medical Association the EAT upheld a decision that it had been fair to dismiss an employee who had raised multiple informal grievances and refused to progress them or attend a grievance hearing. Importantly, the EAT noted that the proper purpose of grievance procedures is to resolve concerns, not to act as a repository for complaints to be left unresolved and resurrected at will.  The decision has been appealed and is due to be heard by the Court of Appeal in 2023.

  • Using a PILON clause to bring forward termination date: in the case of Fentem v Outform EMEA Ltd it was decided that an employer’s use of a PILON clause to bring forward an employee’s termination date after he had resigned did not amount to a dismissal and so the employee’s unfair dismissal claim could not proceed. However, the Judge reached this decision reluctantly and only because the EAT was bound by previous authority on the point. The decision has been appealed and is due to be heard by the Court of Appeal in early February 2023.
  • When to start redundancy consultation: in Mogane v Bradford Teaching Hospitals NHS Foundation Trust and anor the EAT held that redundancy consultation must commence at the formative stage of the process in order to be meaningful.  Using an arbitrary selection criterion to place an employee into a redundancy pool of one was unfair and meant that consultation about the dismissal was futile, as it was inevitable that she would dismissed.
  • Voluntary redundancy and unfair dismissal: the decision to make employees redundant is never easy and care needs to be taken to follow a lawful process in order to avoid the risks and costs of potential claims, particularly unfair dismissal. Offering voluntary redundancy can be a useful tool for employers, however, as the decision in White v H-C One Oval Ltd highlighted, it will not necessarily avoid the risk of an unfair dismissal claim.
  • Dismissal for persistent lateness: in Tijani v The House of Commons Commission, the EAT upheld an Employment Tribunal’s decision that it was fair to dismiss an employee for being persistently late to work, even though sometimes this was by just two or three minutes.  The EAT agreed that employees must be ready to start work from the time that they are paid, and employers are not required to show they have suffered any problems as a result of an employee’s lateness before moving to dismiss.
  • Successful appeal meant dismissal vanished: in Marangakis v Iceland Food Ltd, the EAT held that the dismissal of an employee “vanished” as a consequence of her successful internal appeal of a dismissal decision. In turn, this meant she could not proceed with her claim for unfair dismissal.  To avoid this outcome, the employee should have withdrawn her appeal in no uncertain terms.  Merely stating that she did not wish to return to work was not enough to constitute the retraction of an appeal.
  • Waiving claims in settlement agreements: employers should take note of the EAT’s decision in Bathgate v Technip UK Ltd and others, in which it was held that employees cannot waive the right to pursue claims which are unknown at the time of signing a settlement agreement.  Attempts to secure a release from all potential claims by way of blanket or “kitchen sink” style waivers are also not effective.

Employment law reforms

  • Select Committee called for robust new menopause laws: in September, the Women and Equalities Select Committee called for major reforms of the law on menopause and the workplace, including making menopause the tenth protected characteristic in the Equality Act 2010.  We took stock of the recommendations in this briefing. Also in September, we delivered a webinar where we took a deep dive into menopause and the workplace. You can access both the recording of that webinar, together with the slide presentation used on the day, here.

  • Countdown to bonfire of EU employment rights: on 22 September 2022, the Government published the Retained EU Law (Revocation and Reform) Bill.  The purpose of the Bill is to remove the presence and influence of EU law within UK law. This will affect all areas of law, including employment law, and could lead to a significant downgrading of workers’ rights by the end of 2023. We considered what the Bill could mean for employment law in this briefing.
  • Pregnant employees and new parents to be protected in redundancy situations: in this briefing we discussed the Government-backed Private Members’ Bill which plans to expand special protection in redundancy situations to pregnant employees and those returning from maternity, adoption and shared parental leave. We also considered what the changes would mean for employers in practice.
  • Significant reform on the way for the law on harassment at work: in this briefing we looked at plans to extend the liability of employers for harassment at work. Under the proposals, employers will have a mandatory duty to take all reasonable steps to prevent sexual harassment at work and may also be found liable for all forms of harassment (not just sexual harassment) committed by third parties.
  • More employment law reforms ahead: with no sign of the Employment Bill promised in 2019, the Government has decided to pursue its reforms of the employment law landscape by way of support for a series of Private Members’ Bills covering flexible working, carer’s leave, neonatal leave and tipping practices. We explained the proposals in this briefing.  Since writing this briefing, the Government has published its response to an earlier consultation on flexible working and confirmed that the right to request flexible working will also be made a “Day 1” employment right.

Brahams Dutt Badrick French LLP are a leading specialist employment law firm based at Bank in the City. If you would like to discuss any issues relating to the content of this article, please contact Amanda Steadman (AmandaSteadman@bdbf.co.uk) or your usual BDBF contact.

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More employment law reforms ahead

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With no sign of the Employment Bill promised in 2019, the Government has decided to pursue its reforms of the employment law landscape by way of support for a series of Private Members’ Bills covering flexible working, carer’s leave, neonatal leave and tipping practices

In 2019, the Government promised a new Employment Bill which would make various changes to the employment law framework in the UK.  That Bill appears to have fallen by the wayside and, instead, the Government is backing a series of Private Members’ Bills that seek to bring about some of the reforms.  We discuss four of the new Bills in brief below.  You can also read our detailed briefings on the Bills seeking to reform harassment law and redundancy protection for certain employees here and here. 

Changes to the flexible working framework 

In September 2021, the Government published a consultation setting out its proposals for change to the flexible working framework.  In particular, views were sought on whether the right to request flexible working should become a Day 1 employment right (currently, 26 weeks’ service is required before a statutory request can be made).  You can read our detailed briefing on the consultation here.

The consultation closed on 1 December 2021 and, almost a year later, the Government has still not published a response.  Instead, the Government is backing a Private Members’ Bill sponsored by the Labour MP, Yasmin Quereshi, which seeks to make modest reforms to the flexible working framework. The Employment Relations (Flexible Working) Bill 2022-23, would amend the law:

  • to remove the requirement for employees to explain in their request what effect they think it will have on their employer;
  • to allow employees to make two flexible working requests per year rather than one;
  • to require employers to consult with the employee before refusing a request; and
  • to reduce the deadline for an employer’s decision on a flexible working request from three months to two months.

However, the Bill would not take forward the Government’s proposal of making the right to request flexible working a Day 1 right.   Overall, the proposals would make the process slightly easier for employees and slightly more onerous for employers.  The Bill passed its second reading on 28 October 2022 and will now progress to the Committee stage for detailed scrutiny. It is not clear when the reforms will come into force if the Bill eventually passes, but it is unlikely that it would be before the first quarter of 2024 at the earliest.

New right to carer’s leave

In September 2021, the Government published its response to a public consultation on proposals for a new right to carer’s leave.  It confirmed that a Day 1 employment right to one week’s unpaid carer’s leave would be introduced “as soon as Parliamentary time allowed”.  You can read our detailed briefing on the proposals set out in the response here.

Over a year later the legislation has not materialised.  Once again, a Private Members’ Bill is attempting to plug the gap.  The Carer’s Leave Bill, sponsored by the Liberal Democrat MP Wendy Chamberlain, seeks to amend the Employment Rights Act 1996 to allow regulations to be made which would entitle employees to take leave from Day 1 of their employment in order to provide or arrange care for a dependant with a long-term care need.  This would cover anyone caring for a spouse, partner, child, parent or other dependant who needs care because of a disability, old age or illness or injury likely to require at least three months of care.

Where eligible, employees taking carer’s leave will remain entitled to take other relevant forms of leave such as unpaid time off for dependant emergencies or unpaid parental leave.  Eligible employees may also be able to request for temporary (or permanent) flexible working arrangements.

The precise scope and mechanics of the new right would be set out in the regulations, but the Bill provides that the right would be to at least one week’s unpaid leave per year.  Employees will be protected from detriment and dismissal as a result of having taken carer’s leave.  Employees will also be able to bring claims for compensation against employers who unreasonably postpone or prevent the taking of carer’s leave.

The Bill has passed the Committee stage and will now progress the Report stage and third reading on 3 February 2023, before moving to the House of Lords.  If the Bill passes, it is expected that the related regulations will come into force some time in 2024.

New right to neonatal leave and pay

In 2019, the Government consulted on proposals to introduce new rights to neonatal leave and pay.  In March 2020, the Government responded to the consultation and committed to introducing these rights.  In what is a bit of running theme, over two and a half years later no further steps have been taken by the Government.

The Neonatal Care (Leave and Pay) Bill, a Private Members Bill sponsored by the Scottish National Party MP Stuart C McDonald, intends to make these commitments a reality.  The Bill seeks to amend the Employment Rights Act 1996 to allow regulations to be made which would allow employees to take leave from Day 1 of their employment where they are the parent of a baby in neonatal care.  Employees with at least 26 weeks’ continuous service would also be entitled to be paid statutory neonatal pay.

Again, the precise scope and mechanics of the leave rights would be set out in the regulations, but the Bill provides that the right would be to take at least one week’s leave within 68 weeks of the child’s birth.  The level and duration of statutory neonatal pay will also be dealt with in the regulations.

The Bill has passed the Committee Stage and will now progress to the Report stage and third reading on 3 February 2023, before moving to the House of Lords.  If the Bill passes, it is expected that the related regulations will come into force some time in 2024 or early 2025.

Tips, gratuities and service charges to be paid to workers in full

Finally, a proposal of relevance to employers operating in the hospitality sector.  The Employment (Allocation of Tips) Bill, a Private Members Bill sponsored by the Conservative MP, Dean Russell, would require employers to ensure that all tips, gratuities and service charges that it receives, or exercises control over, must be paid to workers in full without deductions by the end of the following month.  The Bill would not cover tips paid directly to workers in cash, where those tips are kept by them.

The Bill would also introduce obligations to ensure the fairness of arrangements to distribute tips among workers, either by the employer or an independent tronc arrangement.  A new Code of Practice on Tipping will provide guidance on how tips should be distributed, and employers will also need to have a written policy on how tips are dealt with in their business.  Workers would have the right to bring a claim against employers who failed to comply with the new rules.

The Bill has passed the Committee Stage and will now progress the Report stage and third reading on 20 January 2023, before moving to the House of Lords.  If the Bill passes, it is expected that the changes will come into force some time in 2024.

What do employers need to do now?

There are no immediate changes for employers given that all of these Bills have some way to go before completing their passage through Parliament.  However, it would be sensible to work on the assumption that the Bills will pass into law given that they have the Government’s backing.  In due course, employers will need to:

  • update flexible working policies, practices and training to reflect the changes;
  • familiarise themselves with the new carer’s leave and neonatal leave frameworks and prepare policies and deliver training to HR and managers;
  • consider whether to enhance the right to carer’s leave and/or neonatal leave, for example, by permitting longer periods of leave and offering enhanced pay; and
  • where relevant, familiarise themselves with the new tipping framework and Code of Practice and prepare a policy on company practices on tipping.

We will keep you updated on the progress of all of these Bills.

Employment Relations (Flexible Working) Bill 2022-23

Carer’s Leave Bill 2022-23

Neonatal Care (Leave and Pay) Bill 2022-23

Employment (Allocation of Tips) Bill 2022-23

Brahams Dutt Badrick French LLP are a leading specialist employment law firm based at Bank in the City. If you would like to discuss any issues relating to the content of this article, please contact Amanda Steadman (AmandaSteadman@bdbf.co.uk) or your usual BDBF contact.

 

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Countdown to a bonfire of employment rights?

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On 22 September 2022, the Government published the Retained EU Law (Revocation and Reform) Bill.  The purpose of the Bill is to remove the presence and influence of EU law within UK law. This will affect all areas of law, including employment law, and could lead to a significant downgrading of workers’ rights by the end of 2023.

What is the Bill about?

A large proportion of the UK’s legal framework – including its employment law framework – was underpinned by the law of the European Union, primarily a type of law known as a “directive”.  EU directives had to be implemented into UK law, either as an Act of Parliament or a statutory instrument.  Certain other forms of EU law were directly applicable in the UK without the need for any implementing laws – for example, the rights set out in EU Treaties had what is known as “direct effect”.  Decisions of the Court of Justice of the European Union were also binding on the UK.

Brexit required changes to be made to this legal framework.  Acts of Parliament implementing EU directives remained in place, but Parliament would, in theory, have the option of repealing them if, and when, it wished to do so (although this would require another Act of Parliament).  However, all the relevant statutory instruments would automatically fall away once the European Communities Act 1972 was repealed.   To avoid legal chaos when Brexit happened, the Government decided to retain these statutory instruments and transfer them into UK law.  It also chose to retain directly applicable EU law and decisions of the Court of Justice of the European Union made on or before 31 December 2020.  Together, these laws and decisions are referred to as “Retained EU Law”. 

The Government has decided that the time is right to look again at whether Retained EU Law should be kept or repealed.  The Bill provides that:

  • all retained EU law contained in statutory instruments; and
  • all retained directly applicable EU law,

will automatically expire on 31 December 2023 unless it is preserved (there is a mechanism to extend this until 2026).   

Any Retained EU Law which is kept will be “assimilated” into UK law.  In practice this means that certain EU law principles that govern how these rights operate will disappear.  On top of this, the Bill makes a number of other provisions which are aimed at downgrading the continued impact of EU law on UK law, for example, by making it easier for the courts and tribunals to depart from previous EU case law decisions.

What does this mean for employment law?

Retained EU Law includes a number of important employment law protections including in the following areas:

  • working time and paid holiday rights;
  • rights upon the transfer of a business / an outsourcing;
  • part-time workers’ rights;
  • fixed-term employees’ rights;
  • agency workers’ rights;
  • posted workers’ rights; and
  • information and consultation rights.

It will be for Government departments and the devolved administrations to decide which, if any, of these laws are kept.  It is not yet clear how this will be done, or whether there will be any element of consultation with business and trade unions.  In theory, the rights in these areas could simply fall away at the end of next year.  In practice, what seems more likely is that they will be retained but with a reduction in the level of protection.  We discuss below three areas where we think reform is likely.

Working Time Regulations 1998

It is hard to imagine that there could be a complete deregulation of working time and paid leave entitlements in the UK.  Not only would this be hugely unpopular with most of the UK workforce, but it would also not be welcomed by employers who benefit from operating on a level playing field.  However, we think that the rules stipulating a maximum 48-hour working week and governing the calculation of holiday pay could be removed (indeed press reports have suggested that this is the Government’s intention).  This would mean that workers could be permitted to work in excess of 48 hours per week without the employer needing to enter into an express “opt out” agreement with the worker.  It would also mean that holiday pay could be limited to basic pay only, with other components of pay excluded, such as overtime and commission payments. 

Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)

TUPE provides that upon a business transfer or outsourcing, employees automatically transfer to the purchaser or new supplier on the same terms and conditions of employment.  In addition, they have the right to be informed and consulted about the transfer and are protected from dismissal.  Again, a total deregulation of this area seems unlikely.  Not only would it be unpopular, but it would also pull the rug out from under those employers who had entered into outsourcing agreements on the basis that TUPE applied and would do so in future. 

Yet one likely candidate for change could be the introduction of a rule which permitted the harmonisation of terms and conditions post-transfer.  When the TUPE regulations were reviewed in 2013, businesses reported that the inability to harmonise the terms and conditions of the inherited workforce was a significant burden.  The Government agreed that the ability to harmonise terms was desirable, but said its hands were tied by EU law.  Now, they have the opportunity to make this change.

Agency Workers Regulations 2010

The Agency Workers Regulations 2010 entitle agency workers to basic employment rights comparable to that of a permanent employee once they have completed a 12-week qualifying period.  These rights cover areas such as pay, annual leave, working hours and maternity rights.  These regulations are widely considered burdensome by employers and, as a result, the Government may simply allow them to expire. 

What does this mean for employers?

This Bill could lead to sudden and radical overhaul of employment rights.  On the other hand, it could mean a series of relatively moderate tweaks made over a period of several years.  At present, the precise path the Government will take is unknown.  Nor is it clear what voice employers and workers will have in this process.   All of which means that employers need to brace themselves for yet more uncertainty.

The first reading of the Bill is due to take place on 11 October 2022.  We will provide further updates as the Bill progresses through Parliament.

Retained EU Law (Revocation and Reform) Bill

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What does the Chancellor’s “mini budget” mean for employers?

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On 23 September 2022, the Chancellor of the Exchequer, Kwasi Kwarteng, delivered the Autumn Statement – dubbed the “mini budget” – to Parliament.   In this briefing, we take stock of the key points of interest for employers.

The Chancellor’s mini budget outlined proposals to grow the economy at a rate of 2.5% in the medium term and put an end to the weak economic growth seen over recent months.   The  “Growth Plan 2022” contains several key employment and employment tax measures that will have an impact on employers.  

Repeal of the recent IR35 reforms

One of the most significant and surprising announcements concerned the changes to the IR35 regime.  The off payroll working rules – commonly known as “IR35” – were introduced in 2000 to crack down on the problem of tax avoidance through “disguised employment”. Disguised employment is where a worker supplies their services to an end user client via an intermediary (usually a personal service company controlled by the worker) to benefit from the tax treatment afforded to contractors, when, in reality, the relationship is more akin to one of employment.

The IR35 rules sought to tackle this problem by requiring the intermediary to determine whether the worker would be deemed an employee (or an office holder) of the client for tax purposes if there was a hypothetical direct contract between them (the status determination). Where a worker was deemed to be an employee for tax purposes, then the intermediary was obliged to tax the worker as an employee.  The problem was that the responsibility for making the status determination rested with the intermediary.  In practice, this meant that the worker – with a vested interest in not being an employee for tax purposes – was assessing his or her own tax status. The client in the equation had no role in the process and no potential liability. 

To address this problem, the rules were reformed in 2017 (in the public sector) and 2021 (in the private sector), to remove the intermediary’s role in the process.  Responsibility for making the status determination shifted to the client. If the worker was deemed to be an employee for tax purposes, the obligation to deduct income tax and employee National Insurance Contributions (NICs), and to pay employer NICs, shifted to the entity sitting immediately above the intermediary in the contractual chain.  You can read more about these reforms here.

However, from 6 April 2023, the reforms made to the IR35 regime in 2017 and 2021 will be repealed.  This means that intermediaries will once again become responsible for assessing their own tax status and paying tax and NICs, despite the previous concerns about tax avoidance. 

Removal of the cap on bankers’ bonuses

A cap on bankers’ bonuses has been in place since 2014 and limits bonus payments to either 100% of fixed pay or 200% of fixed pay provided shareholder approval is given, as part of EU-wide regulatory measures put in place following the credit crunch.   The Chancellor announced that this cap would be removed on the basis that it either leads to the inflation of fixed pay or drives banking activity outside the EU.  Further, the Government’s view is that pay in the form of bonuses aligns the incentives of the individual with those of the bank, which, in turn, will support the growth of the UK economy.  However, a return to the days of eye-watering bonus awards may yet herald a rise in disputes about the amount of bonus awarded, as well as sex discrimination or equal pay disputes.

There has been no suggestion that other limitations on remuneration in the financial services sector will be removed, namely the rules on deferrals, malus and clawback.

Cuts to income tax and national insurance

The basic rate of income tax will decrease from 20% to 19% in April 2023.  The additional rate of income tax of 45% charged on taxable income over £150,000 will be abolished in April 2023.  This means that the higher rate of income tax of 40% (which is unchanged) will apply to all income above £50,270.  In addition, the 1.25% increase to the taxation of income earned from dividends will be reversed from 6 April 2023.  Income tax thresholds will remain frozen until April 2026. 

The temporary 1.25% increase in NICs rates that took effect in April 2022 will be reversed on 6 November 2022.  Further, the 1.25% Health and Social Care Levy which was due to replace the temporary NICs increase from April 2023 will be cancelled.

Expansion of company share option plans

Company share option plans (CSOPs) are tax-advantaged discretionary share option plans under which employers may grant options to employees.  Currently, the maximum value of options that may be granted under a CSOP is £30,000.  From April 2023, qualifying companies will be entitled to grant options up to a value of £60,000.   Further, the qualification rules will be relaxed to widen access to CSOPs.  

Introduction of “investment zones”

Discussions are underway with 38 local authorities to create special “investment zones” across England where businesses will, amongst other things, benefit from zero rate employer NICs on earnings up to £50,270 for all new employees who work in the zone at least 60% of the time.   No timescale for introducing the investment zones has been provided.

New limits on industrial action

In response to the train and tube strikes seen over the Summer, the Chancellor announced that new legislation will be introduced to ensure that minimum service levels are in place for transport services.  The aim is to limit the impact that industrial action has on travel.  Further, new laws will be introduced to require trade unions to put pay offers from employers to a members’ vote, with the result that strike action can only be taken if that offer is rejected by members.

Abolition of the Office of Tax Simplification

The Office of Tax Simplification is to be abolished and instead the Treasury and HMRC will be tasked with simplifying the tax system.  We understand that the OTS will continue with its review into hybrid and remote working arrangements, which is due to be published next year.

HM Treasury – The Growth Plan 2022

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Parliamentary Committee calls for the introduction of robust menopause discrimination laws

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The Women and Equalities Select Committee has completed its inquiry into the impact of the menopause in the workplace and called for major reforms in this area, including making menopause the tenth protected characteristic in the Equality Act 2010.  We take stock of the recommendations in our latest briefing.

What was the purpose of the menopause inquiry?

On 23 July 2021, the House of Commons Women and Equalities Select Committee (the Committee) opened an inquiry into the impact of menopause in the workplace.  The purpose of the inquiry was to receive evidence on current workplace practices and views on whether existing discrimination legislation sufficiently protects workers going through the menopause, or whether more needs to be done.  Currently, discrimination against workers going through the menopause is only covered by the Equality Act 2010 where it is connected to one of the existing nine protected characteristics such as age, sex and disability.  The inquiry also looked at whether employers should be compelled to put in place workplace menopause policies.

The inquiry closed on 17 September 2021 and the Committee published its report on 28 July 2022.  The inquiry received over 80 written submissions from the public, legal and medical experts, health organisations, trade unions and academics.  Oral evidence was also taken from these groups and business representatives.

What recommendations for change have been made?

The Committee’s report makes a number of recommendations in the fields of health, workplace and equality.  In this briefing we consider the workplace and equality recommendations only.

Menopause Ambassador to lead the way in showcasing good practice to business

The report states that the Government has a key strategic role in helping businesses and should lead the way in developing and disseminating good practice on managing the menopause at work. The report asks the Government to appoint a “menopause ambassador” to work with stakeholders from business, unions and advisory groups to encourage and disseminate awareness, good practice and guidance to employers.  The menopause ambassador should publish biannual reports on the progress made by businesses, including real life examples of good and poor practices.

It remains to be seen whether the Government will take forward this recommendation.   However, in the meantime, it has already committed to appointing “Menopause Employment Champions” to spearhead a campaign outlining the benefits of recruiting and retaining menopausal workers.

Government should produce model menopause policies

Evidence to the inquiry was divided on whether workplaces should be legally required to have menopause policies.  For example, the CIPD were opposed to compulsory policies, believing that this would promote a “tick box” approach instead of taking action aimed at securing real change on the ground.

The Committee was not persuaded that a legal requirement for every workplace to have a menopause policy would embed meaningful change.  However, the report recommends that the Government produce a model menopause policy for employers, which should cover as a minimum:

  • how staff can request reasonable adjustments and other support;
  • advice on flexible working;
  • sick leave for menopausal symptoms; and
  • provisions for education, training and building a supporting culture.

Introduce Day 1 right to request flexible working

Flexible working was referred to repeatedly in the evidence before the inquiry as being particularly helpful for menopausal employees.  Back in February 2021, the Committee had recommended the introduction of a “Day 1” right to request flexible working and later that year the Government opened a consultation on the issue.  That consultation closed on 1 December 2021, but the response has yet to be published.

The report recommends that the Government should bring forward legislation before the end of the current Parliament to make the right to request flexible working a Day 1 right for all.  In addition, the Government is urged to issue guidance encouraging employers to grant all reasonable requests for flexible working rather than placing the burden on the employees to justify their requests.

Large public sector employer should trial specific “menopause leave”

The report notes that menopausal symptoms can have a significant, and sometimes debilitating, impact on women at work, which often leads to periods of sickness absence.   The presence of rigid sickness absence thresholds may trigger formal absence management processes which can lead to women leaving the workplace.

To counter this problem, the Committee asks the Government to work with a large public sector employer with a strong public profile to develop and pilot a specific “menopause leave” policy.  The Government should publish proposals for a wider roll out within 12 months of the commencement of the scheme.

New guidance on the law should be published

Despite there being existing legal obligations under health and safety and equality laws, the report notes that neither the Health and Safety Executive (HSE) nor the Equality and Human Rights Commission (EHRC) has published any form of guidance on their websites in respect of the menopause.  The HSE’s position is that they do not hear enough from people looking for this sort of guidance to justify producing it, however, they acknowledge that the lack of approaches could be down to embarrassment and/or lack of awareness of the legal obligations.

The report recommends that both the HSE and the EHRC publish guidance on the legal considerations when supporting employees experiencing menopause.

Commence dormant dual discrimination provisions in section 14 of the Equality Act 2010

Evidence to the inquiry was that because menopause is essentially an “intersectional” phenomenon (i.e. in the main it affects older women), the dormant dual discrimination provisions in the Equality Act 2010 should be enacted. Enacting these provisions would entitle a worker to complain of discrimination arising out of the combination of two protected characteristics, rather than one as is presently the case.  This change would help menopausal workers who have typically found it difficult to succeed with complaints based on a single protected characteristic.  The Committee took a robust approach on this issue, stating that the current law “does not serve or protect menopausal women” and that section 14 is “shelf ready” and should be commenced immediately.

However, this is the second time that the Government has been urged to commence the dual discrimination provisions to tackle the issue of menopause discrimination.  In November 2021, the Government-appointed “Roundtable of Older Workers” recommended that the Government enact the dual discrimination provisions.  The Government rejected their recommendation, stating that the existing legal framework provided sufficient protection and further changes were not needed.  Therefore, it seems unlikely that the Government will change tack in response to this latest recommendation.

Consult on making menopause the tenth protected characteristic in the Equality Act 2010

There was considerable support for creating a new protected characteristic of menopause on the basis that it would provide a direct and clear protection to those experiencing discrimination because of menopause.  Some of those giving evidence pointed out the disparity between the way pregnancy and menopause are treated in the workplace.  Pregnancy is legally protected, and menopause is not, even though all women will experience menopause but not all women will experience pregnancy.  Some of those giving evidence also argued that if a new protected characteristic was created this should include a duty to make reasonable adjustments, in the same way that there is for disabled workers.

The Committee was persuaded that a new protected characteristic should be created.  The report recommends that the Government urgently consult on introducing a new protected characteristic, including a duty to make reasonable adjustments for menopausal employees.  The report recommends that this consultation should launch by the end of January 2023.

What are the next steps?

The Government’s response to the Committee’s report is due to be published by 28 September 2022.  However, the extended period of mourning following the Queen’s passing may mean this date is pushed back.  Given the previous statements on the dual discrimination provisions, as well as the new Prime Minister’s deregulatory agenda, it seems unlikely that the Government will back radical legal reform in this area.  What seems more likely is that the Government will commit to producing template policies and encouraging the publication of new guidance.

If you would like to learn more about menopause and the workplace, including what you can do to support your affected workers, you can view BDBF’s latest webinar on this topic here.

Menopause and the Workplace Report – 28 July 2022

BDBF is a law firm based at Bank in the City of London specialising in employment law.  If you would like to discuss any issues relating to the content of this article, please contact Principal Knowledge Lawyer Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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The Government and employment law reform: all talk and no action?

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Despite the fact most of the Government’s promised employment law reforms have been kicked into the long grass, the appetite to talk about reform in this area shows no sign of let up.  In this briefing, we discuss the latest proposals.

The eagle-eyed among you may have noticed that the Employment Bill (first announced back in December 2019) was absent from the Queen’s Speech delivered on 10 May 2022.  That Bill was meant to pave the way for a number of important reforms including:

  • Making the right to request flexible working a Day 1 employment right.
  • Extending redundancy protection to pregnant workers and those returning from various forms of family leave.
  • Introducing a new right to neonatal leave and pay.
  • Introducing a new right to one week’s unpaid leave for carers.
  • Introducing a new right for workers to request a more predictable contract.
  • Introducing a single enforcement body for key employment rights.

It is not clear when, or even if, these reforms will be implemented. 

Elsewhere, the Government had committed to regulate the use of non-disclosure agreements, introduce a mandatory duty on employers to prevent sexual harassment and introduce a statutory code governing “fire and rehire” practices.  All of these commitments have yet to be delivered.   On top of this, the Government has yet to publish its response to the consultation on restricting the use of non-compete clauses in employment contracts.  Several other consultation responses and reviews remain outstanding, for example, the reviews of the family rights, whistleblowing and gender pay gap frameworks.

However, this ever-growing employment law “to do” list has not deterred the Government from yet more talk of reform in this area.

On 10 May 2022, it was announced that Matt Warman MP would lead a review of the “Future of Work” which will look at how to expand the economy after the Covid-19 pandemic.  The review is to be conducted this Summer and will look at issues such as the role of automation and how flexibility in the labour market (e.g. in the gig economy) can be used to encourage growth, while also taking action to avoid the use of exploitative practices.  Once the review is concluded, a report will be submitted to the Prime Minister to inform strategic policy making on labour market issues.

Hot on the heels of this announcement, on 27 May 2022, the Business, Energy and Industrial Strategy (BEIS) Committee launched a call for evidence into the future of the UK labour market.  The call for evidence is seeking submissions on the following issues:

  • The state of play in the UK labour market post-Brexit and the impact of the Covid-19 pandemic on recruitment, skills shortages, and the growth of the labour market.
  • Artificial intelligence and technology in the workplace.
  • Workers’ rights and protections.
  • Employment status and modern working practices five years on from the Taylor Review.
  • The impact of an ageing population on the labour market.

Across these five areas, an array of questions are posed, some of which will be of particular interest to employers, for example:

  • To what extent is long Covid causing long-term sickness absence and early retirement?
  • How should employment rights be improved?
  • How should UK workers’ rights and protections be differentiated from EU standards?
  • Do employment laws need to be updated to reflect the increase in hybrid working?
  • How has the demand for flexible working been affected by the pandemic and what should the Government do about it?
  • Are current legal definitions of employment status fit for purpose?

If you would like to submit evidence to the BEIS Committee you can do this online by 8 July 2022. 

It is not clear what the next steps will be, although the usual practice is for a public consultation to follow a call for evidence.  If so, this would mean that we are unlikely to see any reforms until next year at the very earliest.  Although, if the Government intends to deliver on its earlier promises, the wait could be even longer than this.  With a General Election expected by 2024, the window for delivering concrete reforms before then is beginning to close. 

BDBF is a law firm based at Bank in the City of London specialising in employment law.  If you would like to discuss any issues relating to the content of this article, please contact Principal Knowledge Lawyer Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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Quick recap of the employment law changes coming into force in April 2022

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In this briefing, we round up eight key changes for employers to know about this April.

  1. Covid-related changes – 1 April 2022

The following changes will take effect on 1 April 2022:

  • Self-isolation:those with Covid symptoms will be encouraged to “exercise personal responsibility” and show consideration to others, but will not be required, nor advised, to stay at home.
  • Covid testing:free lateral flow and PCR testing will end for the general public (PCR tests will remain available for social care workers and certain vulnerable groups).
  • Risk assessments:the requirement for employers explicitly to consider Covid in their health and safety risk assessments will be removed.
  • Guidance for employers:the “Working safely” guidelines for employers in different sectors will be replaced by new public health guidance (which had not been published at the time of writing), which will urge employers to continue to consider the needs of those at greater risk from Covid.
  • Covid certification:the use of voluntary Covid-status certification will no longer be recommended for use.
  1. National Living / Minimum Wage: rates increase – 1 April 2022

The hourly rates for the National Living Wage and National Minimum Wage will increase as follows:

  • National Living Wage – age 23+: £9.50 (up from £8.91).
  • Standard adult rate – age 21+: £9.18 (up from £8.36).
  • Development rate – age 18+: £6.83 (up from £6.56).
  • Youth rate – age 16+: £4.81 (up from £4.62).
  • Apprentice rate: £4.81 (up from £4.30).
  • Accommodation offset – maximum daily deduction: £8.70 (up from £8.36).
  1. Statutory pay: increase to statutory family leave payments – 3 April 2022

The weekly rates of Statutory Maternity Pay, Maternity Allowance, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay will increase to £156.66 (up from £151.97).

  1. Deadline for publication of gender pay gap report – 4 April 2022:

During the middle of the pandemic, gender pay gap reporting was suspended and then reintroduced with a delayed publication schedule.  The original reporting pattern has been restored for 2022, meaning that private sector employers with at least 250 employees must publish gender pay gap reports by 4 April 2022 (with public sector employers having to publish by 30 March 2022).  Reports must be published on the organisation’s own website and also on this central Government website.

  1. Statutory Sick Pay and changes to fit notes – 6 April 2022

The weekly rate of Statutory Sick Pay will increase to £99.35 (up from £96.35).

It had been the case that a doctor’s fit note had to be signed in ink by the issuing doctor.  From 6 April 2022, fit notes may be issued digitally without the need for a “wet-ink” signature by the doctor (although wet-ink signed fit notes may continue to be issued).

  1. Employment Tribunal awards: increase to certain limits – 6 April 2022

The limits on certain Employment Tribunal awards will increase as follows:

  • The ceiling on a “week’s pay” for calculating redundancy payments, the basic award for unfair dismissal and various other statutory rights increases to £571 (up from £544).
  • The maximum compensatory award for unfair dismissal claims increases to £93,978 (up from £89,493).

In dismissal claims, these figures will apply to claims where the effective date of termination falls on or after 6 April 2022.

  1. Changes to right to work checks – 6 April 2022

New rules will permit employers to use “Identification Document Validation Technology” (IDVT) service providers to verify digitally the identity of British and Irish citizens with valid passports or Irish passport cards for the purpose of right to work checks.  This will be an alternative to conducting a manual check.  Provided the employer has complied with relevant guidance and the Code of Practice, they will be excused from paying a civil penalty in the event that they employ someone who is disqualified from working because of their immigration status.

  1. New duty to provide personal protective equipment to workers – 6 April 2022

The duty to provide suitable personal protective equipment (PPE) where there is a health and safety risk will be extended to cover the wider group of “workers”, in addition to employees.  Employers may not charge workers (or employees) for the provisions of such PPE.

Steps for employers to take

  • Decide whether you will require those displaying Covid symptoms to take a lateral flow test before attending work and, if so, whether you will pay for such tests.
  • Decide whether you will, in principle, permit those testing positive for Covid on or after 1 April 2022 to attend work if they are fit to do so. However, ensure that you review the new public health guidance when it is published and consult with your workforce before finalising your approach
  • Ensure that staff are paid at least the minimum wage at the applicable rate for the hours they work.
  • Ensure that staff are paid the correct rates of pay for family and sick leave and that any policies and template letters that refer to the statutory rates of pay are updated.
  • Notify those responsible for receiving fit notes from staff about the new form of digital fit note.
  • If you are within scope, ensure that your gender pay gap report is published by the deadline.
  • Ensure that statutory redundancy calculations made in respect of any redundancies taking place on or after 6 April 2022 are calculated using the new weekly rate of pay.
  • Decide if you will use an IDVT service provider to conduct relevant right to work checks and, if so, ensure that you review the related guidance and Code of Practice.
  • Ensure that all workers provided with suitable PPE if this is not already the case.

If your business needs advice on preparing for any of these changes please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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Government confirms ethnicity pay reporting will remain voluntary but announces new measures to tackle race inequality

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On 17 March 2022 the Government published its response to the report by the Commission on Race and Ethnic Disparities (the Sewell Report), which examined racial and ethnic disparities that persist in education, employment and enterprise, crime and policing and health.  The Government’s response paper, entitled “Inclusive Britain”, responds to the recommendations made in the Sewell Report and sets out a 74-point action plan towards a “more inclusive and integrated society”.   In this briefing we consider the proposals of most interest to employers.

The action points in Inclusive Britain are extremely wide-ranging but the following will be of most interest to employers.

Voluntary ethnicity pay reporting

A consultation on introducing mandatory ethnicity pay reporting for large employers was launched in October 2018.  Over three years later, the Government has not responded to that consultation, but has announced that mandatory reporting will not be introduced “at this stage”.  The rationale for this is that the Government does not wish to impose new reporting burdens on businesses as they recover from the pandemic

Instead, the plan is to support employers to report voluntarily on ethnicity pay within their organisation.  The Department for Business, Energy and Industrial Strategy will publish guidance this summer to support employers to do this.  The new guidance will:

  • encourage employers to use specific ethnic groups rather broader categories (e.g. white vs non-white) when publishing their data. It is acknowledged that this means ethnicity pay reporting will be a more resource-intensive activity for employers than gender pay gap reporting;
  • support reporting across demographically different areas, in particular to assist employers in parts of the country with very small ethnic minority populations to report in a meaningful way;
  • include case studies from employers who have already chosen to report on their ethnicity pay to set the benchmark for other employers to meet; and
  • help employers identify the causes of pay disparities and take steps to address them.

It is not clear whether the Government will collate and publish reported ethnicity pay gaps on a central Government website, in the same way as is done for gender pay gap reporting.  A centralised website would enable readers to access all the reported data in one place and compare how employers are performing.  However, the response paper is silent on this issue.

Strengthening the Equality and Human Rights Commission

The Government says it wishes to strengthen the ability of the Equality and Human Rights Commission (EHRC) to enforce the Equality Act 2010.  The response paper says the Cabinet Office will invest in EHRC enforcement activity to challenge race discrimination through investigations and supporting individual cases.

In order to improve good practice in equality law across Britain it is said the EHRC will also support a wider range of organisations to comply with the law and develop policies and processes that support equality of opportunity for all.  However, no details are given as to which organisations will receive this support or when it will be provided.

New resources for employers to promote inclusion at work

The Government says it wishes to build a stronger evidence base showing how we can make workplaces more inclusive and fairer for everybody.  To that end, it proposes to establish an “Inclusion at Work Panel” by Spring 2023.  The Panel will be made up of academics and practitioners in business and will develop and disseminate resources for employers to drive fairness within their organisations.  This will go beyond race and ethnicity and identify actions to promote fairness for all in the workplace.

The UK Civil Service and public sector employers will lead by example by adopting evidence-based approaches, rooting out poor quality training and trialling new approaches.

Improved guidance on the use of positive action measures

The Government recognises that employers wish to introduce measures designed to improve representation and provide opportunities to certain protected groups.  However, it is important that such measures amount to lawful positive action, rather than straying into unlawful positive discrimination.

The Government believes it can help smaller organisations be more confident in using positive action measures by refreshing the guidance in this area.  Therefore, updated guidance on positive action is to be published by the Government Equalities Office by December 2022.

Improve standards by launching an “Inclusion Confident” scheme

While the Sewell Report found that the ethnicity pay gap is improving and ethnic minorities have made significant strides in occupational representation, underrepresentation persists at senior levels and ethnic minorities are more likely to experience discrimination at work.

The Government notes that the Disability Confident Employer Scheme helps organisations take action to improve how they recruit, retain and develop disabled people within the workplace.  The plan is to put in place a similar scheme that includes, but is not exclusive to, ethnicity and race. The new scheme will be live by Autumn 2023 and employers will be able to sign up to the scheme on a voluntary basis.

Regulation of artificial intelligence technology

The Sewell Report had recommended that the Government do more to improve the transparency and use of artificial intelligence (AI) technology by publishing guidance on applying the Equality Act 2010 to algorithmic decision-making.  In response, the Government has said that later this year the Office for AI will publish a white paper setting out the national position on governing and regulating AI.  This will include how to address potential racial bias in algorithmic decision-making.

In addition, the EHRC will issue guidance explaining how the Equality Act 2010 applies to algorithmic decision-making.  An algorithmic transparency standard will also be piloted in the public sector.

What are the next steps and what should employers do now?

The Government says the Inclusive Britain action plan will serve as a template for the public sector, businesses, charities and individuals.  It plans to report back to Parliament in 12 months’ time on the progress made in delivering these actions.

Despite the wide-ranging nature and ambitious tone of the Government’s response, there is, in fact, no new legislation for employers to get grips with.  Rather, the workplace initiatives are all voluntary in nature and it remains to be seen how many employers will choose to take them forward.  However, it would be sensible for employers with an interest in these issues to diarise the following dates and give some thought to which, if any, initiatives they wish to pursue.

  • Summer 2022 – review new guidance on voluntary ethnicity pay reporting and work towards reporting.
  • December 2022 – review new guidance on positive action and implement appropriate measures
  • Spring 2023 onwards – review new materials on inclusion in the workplace and implement a strategy.
  • Autumn 2023 – sign up for the Inclusion Confident scheme.

Inclusive Britain: Government Response to the Commission on Race and Ethnic Disparities

If you would like further information, or to discuss how your organisation can approach these initiatives, please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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What’s in store for employers in 2022?

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Employment law never stops changing – and 2022 looks like it will be no exception.  The year ahead promises an array of reforms affecting discrimination, sexual harassment, flexible working, redundancy protection and non-compete restrictions.  We will also see the introduction of new employee rights including rights to carer’s leave and neonatal leave, as well as possible new protections for menopausal workers.

Our detailed employment law tracker will provide you with an at-a-glance guide to all of these changes and more, and also links to more detailed briefings on the most important changes.  Click on the image below to view the tracker.

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What do employers need to know about in 2022?

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Join our lunchtime webinar on 25 January 2022 when we will survey the key issues for employers in 2022.

Click on the link below for full details of the agenda. If you’d like to sign up please email Jackie Rockall at jackierockall@bdbf.co.uk.

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