In the Spotlight | Yn y Chwyddwydr
Welcome to the latest edition of ‘In the Spotlight’ – a concise presentation offering an overview of crucial legal updates and notable cases from the field of UK employment law.
We aim to give you a comprehensive understanding of the evolving legal landscape governing workplaces in the United Kingdom as we know that in employment law, change is the only constant.
So, let’s delve into the latest news that have recently hit the headlines:
Lessons in proper investigations to be learned from the Post Office Horizon scandal
Perhaps the ‘story of 2024’ so far, the Post Office Horizon scandal re-hit the headlines after the broadcast of the ITV drama, Mr Bates Vs The Post Office. The saga, which has seen over 700 subpostmasters convicted of theft, has highlighted the need for thorough investigations when faced with any disciplinary allegations.
In any misconduct hearing an organisation should ensure that a fair and thorough investigation is held. In addition to this, if there is a flaw in a process or service, these should be acknowledged and resolved, not having the blame passed on.
Does the 2024 National Insurance cut affect the funding of state pensions?
After the new National Insurance cut came into effect in the first week of January, potential implications have been found that might affect the overall funding of state pensions. As these pensions are funded from NI contributions it may cause further changes to how they are implemented.
With the cut in funds combined with an 8.5% rise in the state pension coming in April, questions have been asked whether the ‘triple lock’ guarantee will need to be broken by Government or whether the state pension age will have to increase yet again.
Government TUPE and ‘hire and refire’ laws in 2024 spotlight
2024 is already set to be full of employment law changes as we’ve mentioned previously and it’s no surprise there’s a couple more to keep your eyes out for this year.
Firstly, for businesses acquiring or selling assets or services where the TUPE Regulations 2006 apply, reforms simplifying the information and consultation process are due to come into effect in July 2024. The mandatory information and consultation process stipulated by TUPE for direct engagement with employees is proposed to expand from employers with fewer than 10 employees to those with fewer than 50. This modification is expected to streamline the administrative procedures that businesses encounter when transferring employees in such circumstances.
Secondly, employers should look out for potential changes to “fire and rehire” practices and the enforceability of non-competes in employment contracts.
The government’s response to its consultation on the draft code of practice regarding fire and rehire is expected to be published in Spring 2024 which could provide additional considerations for employers who are contemplating the use of fire and rehire to implement changes to employees’ terms and conditions.
In addition, the government has announced that it intends to limit the duration of non-compete restrictions in employment contracts to three months. This proposal may not take effect until after the general election, but employers should be mindful of its potential impact on terms they negotiate with their workforce.
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In other news…
Lack of early redundancy consultation at “formative stage” makes dismissal unfair
An employee who was made redundant from their organisation before having their case for unfair dismissal dismissed at tribunal has successfully overturned the decision at an Employment Appeal Tribunal.
The EAT found that in a redundancy situation an employee must be consulted and given time to respond through a ‘general workforce consultation’. This could include offering to take a voluntary pay cut to decrease the need for redundancies.
Pay growth picks up as candidate numbers surge
In the last month of 2023 figures from the Recruitment and Employment Confederation highlighted a number of trends around recruitment activity. While candidate supply continues to rise, there has also been a decline in hiring activity with falls in both permanent and temporary roles available.
Candidate numbers continue to surge from jobseekers looking for new work with many hiring processes paused due to a lacklustre economic outlook.
£800,000 lesson in how not to do diversity training
A dyslexic bank manager who was sacked from Lloyds Bank following a workplace free speech row has been awarded over £800k in damages thanks to the Free Speech Union (FSU).
In addition to the huge financial compensation, Lloyds have also been given a series of important recommendations to follow for the future.