Analysis and commentary by Reed Smith attorneys on developments in employment and labor law
Employers will be liable for the discriminatory acts of their employees in the course of employment unless they have taken ‘all reasonable steps’ to prevent the wrongdoing.
Whether all reasonable steps have been taken will be fact-specific and the hurdle is a high one; the Equality and Human Rights Commission (EHRC) stated in its Statutory…
The United Kingdom has published plans on proposed changes to paternity leave. These extend the period over which leave can be taken and streamline the administration process.
The UK’s statutory paternity leave regime currently allows eligible employees to take two weeks of leave (at the statutory rate at the time, currently £172.48 per week) in…
Changes to the UK’s statutory regime for flexible working have been in discussion for several years, but reforms are now coming to fruition.
Improving flexibility for the modern working environment has been on the agenda for many years, and the flexible working movement gained further momentum following COVID-19 lockdowns, with developments in technology making remote…
The Labour party is considering a proposal to introduce a “right to disconnect” (a so-called right to switch off) if it wins the next general election. It follows an increasing trend since 2017, especially across Europe, of introducing restrictions on employers contacting workers outside normal working hours or protecting employees who choose not to engage…
The tide is turning on employment law at sea. For decades, maritime employment seemed to be governed more by treaty than by specific national regulation. Increasingly, however, the UK has begun to take action – best demonstrated by the new “Seafarers’ Wages Act”, passed in response to recent well-documented controversies.
In this post, we examine…
On 10 May 2023, the UK government announced its intention to legislate to limit the length of non-compete clauses to a maximum of three months.
Announced as part of a number of planned legal reforms (also see our employment law watch blog on changes to post-Brexit employment legislation), the proposal is currently light on…
On 10 May the UK government made a series of announcements that affect employment law.
Firstly, a significant change to the Retained EU Law (Revocation and Reform) Bill means that we are no longer on tenterhooks about what EU laws will continue to apply. The sunset clause, which provided that EU law would be automatically…
The UK government has announced that it will support the Worker Protection (Amendment of Equality Act 2010) Bill (the Bill), which represents one of the most notable changes to UK workplace discrimination law since the 2010 Equality Act. The Bill imposes a proactive duty on employers to take all reasonable steps to prevent the harassment of its employees, including by third parties, with a compensation uplift where they fail to do so.
Why the Bill is being introduced
In 2018, the Women and Equalities Select Committee (WESC) published a damning report on the prevailing extent of sexual harassment in the workplace. This report, along with campaigns by the Fawcett Society and other groups, led to the UK government undertaking its own consultation from 11 July to 2 October 2019, which found that 54% of respondents had experienced harassment at work.
High-levels of harassment, and notably sexual harassment, in the workplace has been common place for years. The 2022 Gender Equality in the Workplace report by Randstad found that 72% of the 6,000 women polled had experienced or witnessed harassing behaviour by male colleagues, and that 67% of them had experienced some form of gender discrimination. 32% of the women polled felt that their careers had been affected by sexual harassment.
Studies have shown that harassment is not limited to male colleagues, but is also inflicted by third parties. A 2018 report by the TUC found that 36% of 18-34 year olds who have experienced some form of workplace harassment said that the perpetrator was a third party.…
The UK government has announced new, increased statutory rates and limits that will be in place in England and Wales from April 2023. The updates impact a range of employment payments including, among others, national minimum wage rates and statutory sickness, parental and redundancy payments.
These rates are reviewed on an annual basis but, in 2023, given recent economic and inflationary pressures, they are set to increase considerably. For some employers, these increases could have a material impact on their overall wage bill and the cost of some types of operational change. We discuss some of the main changes below. Please see a list of the key new rates and limits and how they have changed.
National minimum wage (from 1 April 2023)
National minimum wage rates are set to materially increase at all levels and age categories. By way of example, the national living wage (for workers aged 23 and over) is set to rise from £9.50 per hour to £10.42 per hour.
Steps will need to be taken to increase pay for workers currently below these limits from 1 April 2023. Attention will also need to be given to workers whose pay is close to the new threshold to confirm that, when their hourly pay is calculated in accordance with national minimum wage legislation, it continues to meet statutory minimum requirements. Not doing so risks costly penalties for non-compliance (up to £20,000 per worker) as well as payments of arrears and being named and shamed on government lists.
Where changes are made to some workers’ pay for compliance with these changes but not others, employers may also want to consider the impact on overall pay structures. Is there now a smaller gap / increased pressure between the lowest paid roles and slightly higher paid roles? Will there be increased pressure from other workers to also receive an inflationary pay rise? Employers should review contracts and pay review practices to assess how these type of issues will be managed and be ready to answer employee questions. Some employers may consider one-off payments/bonuses to employees to support them during the cost of living crisis but targeting such measures at employees at the lower end of the pay scale can create its own problems in terms of justifying an arbitrary cut off point.
Continue Reading Are you ready for the new employment rates and limits in England & Wales?
As reported on our blog in November, the idea of a four-day working week is gaining momentum in the UK. Last month, the not-for-profit organisation, 4 Day Week Global, reported the results of its six-month UK trial. With 92% of reporting companies confirming they will continue with the four-day week, the trial has been reported as a resounding success. In this article, we review where the four-day working week movement may go from here and what employers should be thinking about now.
What is a four-day working week?
The UK trial typically involved working hours being reduced to 80% (or full time employees working 4 out of 5 days a week) crucially without any drop in pay. The expectation is that productivity matches or even exceeds usual standards.
There are numerous ways to structure a four-day working week depending on what best suits a particular business, including a whole business shut down on one day, staggered days off or different sets ups for different teams or times of the year (e.g. to meet seasonal demand).
Why is a four-day working week becoming increasingly popular?
Coming out of the pandemic there has been an increased focus on work life balance, mental health and wellbeing, and employers’ roles in supporting employees on these fronts. Employers in some industries have also seen a talent war emerge as they find it harder to recruit and retain the best talent.
These conditions have arguably assisted the four-day working week in gaining momentum. Happy employees enjoying a healthy work life balance are less likely to fly the nest and join the so-called “great resignation”. For the moment at least, offering a four-day working week is also sufficiently unusual that it is likely to give a competitive advantage when recruiting new talent.
If it is correct that productivity is not negatively impacted, a four-day working week provides a way to recruit and retain without the cost burden of increasing salaries. It also offers cost savings in terms of recruitment costs and, potentially office running costs and, for some employees, potentially childcare costs. Of course, the more companies that make the move, the more pressure other employers in the same industries may feel to do the same.
Other benefits include reducing carbon footprint due to less frequent commuting and a potential social impact if employers use their time off for voluntary work. There is also a view that a four-day working week could improve equality by better enabling employees with caring responsibilities to manage those responsibilities around work and therefore remain in the workforce.
What were the conclusions of the trial?
The UK trial involved just under 3000 employees across 61 organisations. The headline results were as follows:
However, it is important to note that these statistics are based on a relatively small pool. The survey response rate from the participating employees was only 58% by the end of the trial and in some cases, the no/negative change was greater than the positive story. For example, whilst 39% of employees reported being less stressed by working a four-day week, 48% reported no change in their stress levels and 13% reported increased stress. The retention and absenteeism statistics may also be skewed by the small populations involved.…