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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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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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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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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.

2. 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).

3. 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).

4. 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.

5. 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).

6. 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.

7. 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.

8. 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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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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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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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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What are the employment law highlights from the last 12 months?   We’ve picked out some of the most interesting cases and other developments from 2021 for employers to reflect on as the year draws to a close. 

COVID-19

• Vaccines and the workforce: employers had to grapple with the tricky issue of whether to require staff to be vaccinated against COVID-19. Introducing such a requirement raises the risk of unfair dismissal and discrimination claims, as well as raising a number of practical issues such as allowing time off to be vaccinated, how post-vaccination sickness is treated and the data protection implications of holding vaccination status information.  You can read more about all of these issues in our two-part series of briefings here and here.  You can also catch up on our “No Jab, No Job?” webinar here.

• COVID-related dismissals: claims of unfair dismissal for COVID-related reasons began to appear for the first time, with the Employment Tribunals taking a relatively robust approach.  For example, in Kubilius v Kent Foods Limited the Tribunal held that an employee had been fairly dismissed for refusing to wear a face mask when attending a client’s premises.  You can read more about that decision here.  Also, in Rodgers v Leeds Laser Cutting Ltd the Tribunal decided that an employee had been fairly dismissed for refusing to attend work because he was worried about catching the virus and giving it to his children.  You can read more about that decision in our briefing here.   

• Furlough scheme extended and closed: the furlough scheme was due to close at the end of April.  Yet, in late March, the Chancellor announced that the scheme would be extended by five months and close on 30 September 2021. Throughout this extended period, furloughed employees remained entitled to be paid 80% of their normal wages for any furloughed hours, subject to the maximum cap of £2,500 per month.  It is not yet known whether the scheme would be resurrected in the event of further national lockdowns in 2022.  You can remind yourself of how the scheme operated and the impact of its closure in our guide to the scheme here.

• Hybrid working here to stay: as restrictions lifted on “Freedom Day” on 19 July 2021, many employers began to return staff to the workplace over the Summer and Autumn months. However, a full-time return was not on the cards, with the majority of employers preferring some form of hybrid working. This was recognised by Acas, who issued new guidance for employers on implementing hybrid working.  You can read more about this in our briefing here.   We also published some FAQs about the return to work and hybrid working here.   In the last few weeks, the CIPD has published its own practical guidance on hybrid working, which you can view here.

• The arrival of Omicron: just as life had begun to return to some semblance of normality, the virus mutated yet again, with the Omicron variant being identified as a cause for concern. You can read our initial briefing on what Omicron meant for office-based employers here (as the situation is fast-moving please do get in touch with us for advice on the latest position).

Equality

• Harassment: in the harassment sphere there were a couple of important decisions for employers to note this year. First, in the case of Driscoll v V&P Global Ltd and another, the EAT held for the first time that where an employee resigns in response to repudiatory conduct which constitutes or includes unlawful harassment under the Equality Act 2010, then the constructive dismissal itself is capable of amounting to an unlawful act of harassment.  You can read the EAT’s decision here.  Second, in the case of Allay (UK) Ltd v Gehlen the EAT held that an employer’s failure to provide regular and effective equality training meant that they could not rely on the “reasonable steps” defence to a race harassment claim.  You can read more about this decision in our briefing here.

• Sexual harassment: a report from the Fawcett Society revealed the continued prevalence of sexual harassment at work, despite the rise in hybrid working. You can read more about this report in our briefing here.  The Government also announced plans to reform sexual harassment laws to introduce a positive duty on employers to take all reasonable steps to prevent sexual harassment and reintroduce protection from third party harassment at work (e.g. harassment by a client or a contractor).  You can read more about these reforms in our briefing here.
   

• Sex discrimination and flexible working: this year we saw a spate of discrimination cases arising out of the refusal of flexible working patterns requested by working mothers.  In the case of Dobson v North Cumbria Integrated Care NHS Foundation Trust an employee and mother of three (including two disabled children) brought a discrimination claim after she was dismissed for refusing to work occasional weekends.  The EAT ruled that Tribunals must accept as fact that women still bear the primary burden of childcare responsibilities and this hinders their ability to work certain hours.  You can read more about this decision in our briefing here.  In the case of Keating v WH Smith Holdings Ltd the imposition of a Saturday working requirement on a single mother was held to be discriminatory and in Thomson v Scancrown Ltd t/a Manors a refusal to make modest adjustments to a maternity returner’s working hours was also said to be discriminatory.  You can read more about these decisions in our briefings here and here.

• Associative indirect disability discrimination: in another case concerning refusal of a flexible working pattern, an Employment Tribunal upheld a claim of associative indirect discrimination for the first time. In the case of Follows v Nationwide Building Society an employee refused to move from a hybrid working arrangement to an office-based working arrangement as she had caring responsibilities for her disabled mother.  Her refusal led to her dismissal.  The Tribunal held the requirement to work in the office full-time indirectly discriminated against the employee because of her association with a disabled person, even though she was not disabled herself.  You can read the Employment Tribunal’s decision here.

• Sex discrimination claims brought by men: 2021 saw two notable sex discrimination claims brought by men – with differing results. In the case of Price v Powys Council, the EAT held that it was not discriminatory to enhance pay for a female employee on adoption leave and not to do so for a male employee on shared parental leave.  You can find out why in our briefing here.   The male claimants in the case of Bayfield and Jenner v Wunderman Thompson (UK) Ltd were more successful.  Here, the Tribunal decided that the dismissal of two senior male employees amounted to sex discrimination, where the dismissals had followed the announcement of the employer’s high gender pay gap figures and a radical new approach to diversity within the business.  You can read more about this decision in our briefing here and you can also read Gareth Braham’s article in the ELA Briefing on this topic here.

• Gender critical beliefs are protected: in the high-profile case of Forstater v CGD Europe and others, the EAT held that gender critical beliefs, including beliefs that biological sex cannot be changed and is different to gender identity, are protected beliefs.Although the beliefs may be offensive to some and could even result in the harassment of trans persons in certain circumstances, they were protected under the right to freedom of thought, conscience and religion under the European Convention of Human Rights and as philosophical beliefs under the Equality Act 2010.  You can read more about this decision in our briefing here.

• Menopause and the workplace: the impact of the menopause on workers has been a hot topic this year. Two Parliamentary Inquiries were launched, with a view to introducing better legal protections for affected workers.  Further, a new report highlighted the severe impact of the menopause on those working in the financial services sector.  You can read more about these developments in our briefings here and here.   We also saw the second ever appellate decision on a claim concerning the menopause.  In the case of Rooney v Leicester City Council, the EAT held that an Employment Tribunal had been wrong to say that a woman suffering from a wide range of menopausal symptoms which affected her day to day life was not disabled for employment law purposes.  You can read more about this decision here.   If you would like a deep dive on menopause and the workplace, you can also listen to the podcast we recorded for Daniel Barnett’s “Employment Law Matters” podcast.
  

• Equal pay: the supermarket chain equal pay litigation continued in 2021, with David overcoming Goliath in two notable decisions. In Asda Stores Ltd v Brierley and ors the Supreme Court upheld a decision that a group of female retail store workers could compare themselves to a group of male distribution centre workers for the purposes of an equal pay claim, even though they worked at separate establishments.  In Tesco Stores Ltd v Element and ors, the EAT upheld an order for the employer to disclose documents and provide information relating to the alleged pay comparators’ contracts, job descriptions and pay.  It rejected the employer’s argument that the specific disclosure request amounted to a “fishing expedition”.   Both decisions will help claimants get equal pay claims off the ground.  You can read the decisions here and here.

• Pay reporting: having been suspended in 2020 due to the pandemic, gender pay gap reporting resumed in 2021, albeit that the reporting date was postponed from April to October.  You can read more about this in our briefing here.   Analysis by PwC of the most recent round of reports shows a small decline in the average median pay gap from 14.2% in 2017/8 to 13.1% in 2020/21.  By contrast, proposals to introduce ethnicity pay gap reporting appear to have stalled.  The Government consulted on the issue in 2019 but, to date, has failed to publish its response.  To mark this year’s Race Equality Week in February, we published a briefing summarising where things currently stand.

Employment status, contracts and policies

• Who is a worker? In Uber BV v Aslam, the Supreme Court upheld a decision that drivers working for Uber were workers and not self-employed contractors.   This decision is important for employers engaging contractors as it highlights the continued willingness of the Courts and Tribunals to scrutinise the way a relationship works in practice, regardless of contractual labels.  You can read more about this decision in our briefing here.    

• Reform of the IR35 regime: the way in which the IR35 rules operate in the private sector changed on 6 April 2021.  These reforms saw contractors lose the ability to determine their own tax status and placed the burden on those who engage them (often the end user).  You can remind yourself of the new framework and the action points for clients and contractors in our guide to the regime here.

• Changing terms and conditions: a survey conducted by the CIPD this year revealed that 22% of employers have made changes to their employees’ terms and conditions since the start of the COVID-19 pandemic, including to terms relating to place of work, hours of work and pay. Acas has published new guidance for employers on how to navigate changes to terms and conditions and they caution against the use of “fire and rehire” strategies. You can read more about this guidance in our briefing here.

• Holiday pay: in the case of Smith v Pimlico Plumbers the EAT decided that workers do not have a right to carry over holiday pay where they had taken unpaid annual leave. This contrasts with an earlier European Court decision where it was decided that workers are entitled to carry over unlimited annual leave which had not been taken because it was unpaid.  You can read the EAT’s decision here.   This decision is of importance for organisations who engage people they think of as independent contractors who may, in fact, have worker status.  It should be noted that this decision has been appealed to the Court of Appeal, with judgment expected in 2022.

• Flexible working reform: the Government published a consultation seeking views on proposals to expand and improve the flexible working framework.  The consultation looks at a range of proposals including whether the right to request flexible working should become a “Day 1” employment right and whether employers should be required to show they have considered alternatives before rejecting a flexible working request. The consultation closed on 1 December 2021 and the Government’s response is expected in 2022.  You can read more about the proposals in our briefing here.

• New right to carer’s leave: the Government announced that a new right for employees to take up to one week of unpaid carer’s leave per year will be introduced when Parliamentary time allows.  The right will be a “Day 1” employment right and employees will be able to take the leave to care for and/or make arrangements to provide care for a dependant who has a long-term care need. In due course, employers should put in place a policy to outline the new right and how staff can take such leave.  You can read more about the new right in our briefing here.

Whistleblowing

• New EU Whistleblowing Directive: the EU’s new Whistleblowing Directive is due to be implemented by EU Member States by 17 December 2021. Legislation must be introduced which, amongst other things, requires private employers with 50+ workers to establish internal reporting channels, keep a whistleblower’s identity confidential, confirm receipt of a whistleblower’s report within seven days, and provide a response within a reasonable period which should generally not exceed three months.  Post Brexit, the UK does not need to implement the Directive, however, it may elect to enhance whistleblowing laws to keep pace with the EU.  You can read more about the Directive in our briefing here.

• World Whistleblowers Day and tips for employers: World Whistleblowers Day fell on 23 June 2021 and looked at how best to support the mental wellbeing of whistleblowers.  What can employers do to empower staff to speak up about malpractice and protect whistleblowers from reprisals?  In our briefing here, we considered five actions employers could take to support whistleblowers within their business.

• Dismissing whistleblowers: in the case of Kong v Gulf International Bank (UK) Ltd the EAT handed down an employer-friendly decision, holding that in whistleblowing dismissal claims, it will rarely be the case that an employer will be fixed with the motives of anyone other than the person/s making the decision about whether to dismiss. The EAT also held that if a whistleblower is dismissed for the manner in which they conveyed or pursued their concern, this is genuinely separable from the raising of the concern itself and, as such, will not be automatically unfair.  We understand this decision is to be appealed to the Court of Appeal.  You can read the EAT’s decision here.

• Interim relief hearings should be heard in public: in the case of Queensgate Investments LLP v Millet the EAT ruled that applications for interim relief should be heard in public, save where an order is made to restrict publicity.  Interim relief is a powerful remedy open to claimants in a small number of specific claims for automatic unfair dismissal and is most commonly sought in whistleblowing dismissal claims.  This is the first appellant authority on this point, with BDBF acting for the successful respondent to the appeal.  You can read more about the EAT’s decision in our briefing here.

Termination

• Constructive unfair dismissal: in the case of Flatman v Essex County Council, the EAT held that a Tribunal misapplied the law by failing to identify whether a fundamental breach of contract occurred at any point up to the employee’s resignation. In so doing, it reaffirmed the principle that once a fundamental breach has been committed, it cannot be cured. You can read more about this decision in our briefing here.

• Misconduct: in the case of Daley v Vodafone Automotive Ltd an employee was dismissed for gross misconduct for behaving in an offensive, threatening and intimidating manner towards a colleague. During the disciplinary investigation, the employee disclosed that he took medication for depression which caused side effects including anger and frustration. The employer took no action in response to this information and went on to dismiss.  The EAT held that the Employment Tribunal should have considered whether the employer’s failure to probe the impact of the employee’s depression and medication rendered the dismissal process unfair.  You can read more about this decision in our briefing here.

• Redundancy and appeals: in the case of Gwynedd Council v Barratt the Court of Appeal confirmed that, on its own, the absence of a right to appeal against dismissal for redundancy does not make it unfair. However, it is one of the factors to be considered when determining the overall fairness of the dismissal. You can read more about this decision in our briefing here.

• Post-termination restrictions: the Government launched a consultation about regulating the use of non-compete restrictions in employment contracts.  Views were sought on proposals including requiring employers to pay compensation for the duration of non-compete restrictions or banning their use altogether.  The consultation closed on 26 February 2021 and the Government’s response is awaited. You can read BDBF’s response to the consultation here.

If you would like to know more about any of these developments please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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The Government has announced that a new right for employees to take up to one week of unpaid carer’s leave per year will be introduced when Parliamentary time allows.  In this briefing we explain how the new right will work and what steps employers should take to prepare.

Background

Plans to introduce a new right to carer’s leave were first raised almost two years ago.  The Queen’s Speech in December 2019 outlined the Government’s intention to bring forward an Employment Bill  which would introduce a new right to unpaid carer’s leave.  Unsurprisingly, given the onset of the pandemic, the Employment Bill did not materialise.  However, the Government did open a public consultation on the proposal – that consultation closed on 3 August 2020.  Just over a year later, on 23 September 2021, the Government published its response to the consultation and has confirmed that the right will be introduced as soon as Parliamentary time allows.  It is estimated that this right will benefit almost 2.5 million employees who have caring responsibilities.

Who will be able to take carer’s leave?

All employees in England, Wales and Scotland will be entitled to take carer’s leave from Day 1 of their employment. They will be entitled to take the leave to care for and/or make arrangements to provide care for a “dependant” who has a “long-term care need”. 

It is anticipated that the meaning of “dependant” here will align with its meaning in the context of other employment rights and will cover the following people:

• spouse / partner / civil partner (including same sex partners);
• child;
• parent;
• a person living with the employee as part of their household; and
• a person who relies on the employee for care.

In this context, a “long-term care need” will mean:

• a long-term physical or mental illness or injury;
• a disability under the Equality Act 2010; and/or
• care needs relating old age.

How may carer’s leave be taken?

The entitlement is to one week’s unpaid leave per year. 

The one week’s leave may be taken flexibly, for example as half days, full days or in a single block of one week.  It is hoped that such flexibility will better meet the needs of those with caring responsibilities.  In theory, this means that employers could have to deal with a higher number of leave requests than would be the case if the leave had to be taken in a single block.  However, we suspect that, in practice, many carers wishing to take shorter blocks of leave (such as half days) will be in a position to plan in advance when they will need to take the leave and be able to make a block booking.

The right is to unpaid leave only.  Although some respondents to the consultation were in favour of prescribing paid leave, the Government rejected this option on the basis that it wanted to ensure a “proportionate impact” on employers.   However, employers may choose to offer paid leave if they wish.

What are the requirements for booking carer’s leave?

An employee wishing to take carer’s leave must give notice to their employer at least twice the length of the leave requested, plus one day.  For example, if an employee wished to take Friday afternoon off as carer’s leave, they would need to give notice by no later than the preceding Wednesday.   An employer may refuse a particular request to take carer’s leave where they consider this would unduly disrupt their business.  However, the employee must be allowed to take the leave at another time.

There will be no requirement for employees to provide their employer with evidence of the need to take carer’s leave – they will be able to self-certify.  Should an employee falsely claim the leave then this would be a disciplinary matter (and, as a dishonesty offence, would probably justify immediate dismissal).  Employers could introduce their own requirement for evidence to be provided, but consideration would have to be given to compliance with data protection laws (since the evidence may involve the disclosure of medical information relating to a third party).

Do eligible employees have any other rights?

Employees will be protected from detriment and/or dismissal for taking, or seeking to take, carer’s leave.  A dismissal for a reason connected to exercising the right to carer’s leave will be automatically unfair.

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 flexible working arrangements (and proposals to make this a Day 1 employment right are currently under consultation). 

What are the next steps?

The new right to carer’s leave will be introduced when Parliamentary time allows.  It is not yet clear when that will be, but we anticipate that it will be in 2022. 

In due course, employers should consider putting in place a written policy explaining what the right is and how employees may request leave.  Consideration should be given to whether evidence of eligibility will be required and whether the right will be enhanced, for example, by offering additional and/or paid leave.  Where a decision is made to offer paid leave, then this is information which must form part of the particulars of employment to be given to an employee on Day 1 of their employment (either in the employment contract or another document such as a Staff Handbook).  Consideration should also be given to providing training to line managers, so that they understand how to respond to requests and how to avoid responding in a way which may be viewed as detrimental.

Carer’s leave consultation: Government response

If you would like to discuss how to implement carer’s leave within your organisation please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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Summer’s over and that ‘back to school’ feeling is upon us.  You can make sure you are top of the HR class by reading BDBF’s updated 2021 employment law tracker.  The tracker will bring you up to date on all the key pieces of UK and EU employment legislation on the horizon, as well as relevant Government consultations.

Please click on the image below to open the PDF guide:

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If you or your business needs advice please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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The 2021 Queen’s Speech was delivered on 11 May 2021.  In this briefing, we take stock of what it had to say about employment law reform.

The Queen’s Speech in December 2019 outlined the Government’s intention to bring forward an Employment Bill delivering change in a number of areas of employment law including:

• The right for workers to request a more “predictable contract”.
• Extending redundancy protection to pregnant women and returners from family leave.
• Making flexible working the default for all jobs.
• A new right to unpaid carers’ leave.

You can read more about those plans in the BDBF’s 2021 employment law tracker.  Unsurprisingly, given the onset of the pandemic, the planned Employment Bill did not materialise in 2020.  There was no Queen’s Speech in 2020.

The 2021 Queen’s Speech was delivered on 11 May 2021, but the Employment Bill was conspicuous by its absence.  The background briefing notes to the Queen’s Speech also made no mention of the Bill and referred only to two employment law matters of interest.  First, the employment tribunal process will be aligned with that of other tribunals in the Unified Tribunals structure.  Second, there are plans to bring forward measures to address racial and ethnic disparities.  In connection with this, the Government is currently considering its response to the report published by the Commission on Race and Ethnic Disparities on 31 March 2021.

Yet it appears that the Employment Bill has not (yet) been abandoned.  Just a few days after the Queen’s Speech, the Government published its response to the Women and Equalities Committee (WEC) report on the gendered economic impact of COVID-19.  The Government’s response states that the Government is still committed to bringing forward the Employment Bill “when Parliamentary time allows”, but this will not be by the end of June 2021 (as the WEC report had recommended).  This was echoed on 25 May 2021 by Paul Scully MP, Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, when he confirmed that he still intended to bring forward the Employment Bill when Parliamentary time allows.

It’s also worth noting that the Government’s response to the WEC report also specifically states that:

• The Government will consider making the right to request flexible working a Day 1 employment right (currently, 26 weeks’ service is required) and it commits to making flexible working the default position, with a consultation to be published in due course.
• The Government plans to extend redundancy protection to pregnant women and for six months after a mother has returned to work (with similar protection for those returning from adoption and shared parental leave).

Both of these are measures which were to be included in the Employment Bill.  The response also confirms that the Government still plans to respond on the consultation on ethnicity pay reporting (which closed on 11 January 2019).

Employers may be relieved to hear that they don’t have to grapple with a raft of employment law reforms at the same time as dealing with the recovery from the pandemic and the ongoing fall out from Brexit.  However, change is likely to come as part of the Government’s “levelling up” agenda and employers should watch out for further news.  BDBF will keep you updated on developments as they are reported.

If you would like to discuss any issues arising out of this briefing please contact Amanda Steadman (amandasteadman@bdbf.co.uk) or your usual BDBF contact.

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Employment Law News

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Quick recap of the employment law changes coming into force in April 2021

Although the deadline for gender pay gap reporting has been pushed back to 5 October 2021, employers still need to keep on top of other employment law changes coming into force in April. Here we round up the five key changes for employers to navigate.

1. Contractors: changes to the IR35 rules in the private sector – 6 April 2021

The way in which the IR35 rules operate in the private sector will change on 6 April 2021.  These reforms will see contractors lose the ability to determine their own tax status and place this burden on those who engage them.  Large and medium-sized businesses in the private sector that engage independent contractors via an intermediary (usually a personal service company) will become responsible for assessing whether the IR35 rules apply.  Once the business has made its assessment, it must notify certain parties of its decision and provide them with the opportunity to challenge it.

If a business determines that a contractor is an employee for tax purposes, then the party that pays the fee to the intermediary must deduct tax and National Insurance Contributions (NICs).   In a simple contractual chain (i.e. individual > intermediary > end user business), the end user business is the fee payer and would have to deduct tax and NICs.  By contrast, in a four-party chain (e.g. individual > intermediary > agency > end user business), the agency is the fee payer and would have to do that job.

Action point? Our detailed guide to the new regime sets out a range of different action points for affected employers.

2. Statutory pay: increase to statutory family leave pay and sickness payments – 4 April 2021

It is expected that statutory family leave and sickness payments will increase as follows on 4 April 2021 (this date is yet to be confirmed):

• Statutory Maternity Pay, Maternity Allowance, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay: £151.97 per week (up from £151.20).
• Statutory Sick Pay: £96.35 per week (up from £95.85).

Action point? Employers should ensure that the correct rates are paid to affected employees and that any policies and template letters that refer to the statutory rates of pay are updated.

3. National minimum wage: change to the age threshold and rates increase – 1 April 2021

The minimum age threshold for entitlement to the National Living Wage will decrease from 25 to 23 years of age.  In addition, the hourly rates will increase as follows:

• National Living Wage – age 23+: £8.91 (up from £8.72).
• Standard adult rate – age 21+: £8.36 (up from £8.20).
• Development rate – age 18+: £6.56 (up from £6.45).
• Youth rate – age 16+: £4.62 (up from £4.55).
• Apprentice rate: £4.30 (up from £4.15).
• Accommodation offset – maximum daily deduction: £8.36 (up from £8.20).

Action point? Employers must ensure that staff are paid at least the minimum wage (at the applicable rate) for the hours they work.

4. Termination payments: changes to the PENP calculation rules – 6 April 2021

An alternative formula for calculating post-employment notice pay (PENP) will be introduced for use in situations where an employee is paid monthly but their contractual notice period isn’t a whole number of months.  If you require advice on the alternative formula, please get in touch.

The new rules will also introduce changes to ensure that non-residents who receive PENP are taxed fairly.  The tax treatment of PENP for individuals who are non-resident in the year of termination of their UK employment will be the same as for UK residents.  Both changes will apply where the termination payment is received on or after 6 April 2021.

Action point? Employers should familiarise themselves with the new rules and apply them in relevant cases.

5. Employment Tribunal awards: increase to certain limits – 6 April 2021

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: £544 (up from £538).
• Maximum compensatory award for unfair dismissal claims: £89,493 (up from £88,519).

In dismissal claims, these figures will apply to claims where the effective date of termination falls on or after 6 April 2021.

Action point? Employers should ensure that statutory redundancy calculations made in respect of redundancies taking place on or after 6 April 2021 are calculated using the new weekly rate of pay.

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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