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Employment Law Bulletin – February 2024

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Employment Law Bulletin – February 2024

Employment Law Bulletin – February 2024

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Keeffe & Associates Ltd

A UK-based specialist providing outsourced HR, employment law advice, data protection officer services and many different types of training.

EMPLOYMENT LAW BULLETIN – FEBRUARY 2024 – PRACTICAL PERSPECTIVES

The Supreme Court confirms an important limitation on trade union recognition rights

In November 2023, the Supreme Court handed down their judgment in the case of Independent Workers Union of Great Britain v CAC. The Union had applied to the CAC for recognition for collective bargaining in respect of a group of riders working for Deliveroo. The CAC had refused to accept the Union’s application, on the basis that the riders were not ‘workers’ of Deliveroo within the meaning of the Trade Union and Labour Relations (Consolidation) Act 1992. Riders were not required to provide personal service and they were allowed to use substitutes.

The Union appealed the refusal on the basis that it breached Article 11 of the European Convention on Human Rights, arguing that the definition of ‘worker’ in the Act should have been looked at in the light of Article 11. Article 11 protects the right to freedom of association and to form and join a trade union. European case law makes it clear that the Article 11 right to form and join a trade union only exists where there is an ‘employment relationship’ in the European sense. The Supreme Court had to have regard to the factors set out in the International Labour Organisation Employment Relationship Recommendation, 2006 No 198 in looking at whether the riders were employees – focusing on a multifactorial approach, looking at performance of the work and remuneration of the worker.

Applying this test, the Supreme Court held that the riders were not in an employment relationship so the provisions of Article 11, which protect trade union activity, did not apply to them. They also confirmed that in any event, the rights protected by Article 11 did not extend to the protection of the right to collective bargaining. The CAC were correct to refuse the application for recognition.

A reminder that contractual agreements can’t be used to get around statutory employment rights

Contractual terms cannot be used to subvert or limit statutory employment rights. Disputes which have their root in statutory employment rights (such as unfair dismissal and discrimination), can only generally be settled through ACAS (using a COT3 agreement) or by signature of a settlement agreement, which complies with the requirements set out in section 203 Employment Rights Act 1996 (including a requirement that legal advice is taken by the employee). This principle was reviewed by the Employment Appeal Tribunal in a recent case.

In SPI Spirits (UK) Limited v Zabelin, the Employment tribunal found that the Claimant had been subjected to detriment and automatically unfairly dismissed on grounds of whistleblowing.

The Respondent argued that it would be ‘just and equitable’ for the Claimant’s remedy to be capped at £270,000, as this was the maximum liability on termination included in the contract of employment. The Respondent argued that the Claimant was legally trained and had taken advice on the contract such that the cap should be applied. They further argued that the award should not be uplifted for failure to follow the ACAS Code of Practice, as the Claimant’s written grievance did not contain any protected disclosures. These were made later – verbally. The tribunal disagreed, applied a 20% uplift to compensation and awarded the Claimant over £1 million. The Respondent appealed.

The EAT agreed with the tribunal:

  1. Any attempt to limit liability for employment claims in contractual documentation will be ineffective (s203 Employment Rights Act 1996).
  2. The fact that the contractual clause was ‘freely negotiated’ did not mean that it would be ‘just and equitable’ to apply the cap. For whistleblowing cases, there is no cap and compensation should reflect the loss caused – the tribunal should not be fettered in its ability to reach an appropriate compensation figure.
  3. Although a grievance needs to be in writing for the ACAS Code to apply, the fact that no protected disclosure was included in the written document itself, did not mean that the ACAS Code on grievances did not apply.
  4. Regardless, the relevant sections of the ACAS Code, in this case, were those that relate to disciplinary proceedings. Where the employer dismisses or takes other action against an employee because, in substance, of what it regards as culpable conduct, the discipline provisions of the ACAS Code will apply.

Flexible Working to become a Day 1 right from April 2024

Employees currently have the right to make a formal flexible working request, only once they have completed 26 weeks’ service with their employer. As far back as 2022, the government indicated their intention to change this rule to make the right to request flexible working a day one employment right. They have now published legislation making good on their promise.

The Flexible Working (Amendment) Regulations 2023 were laid before Parliament in December 2023. They remove the requirement that an employee must have 26 weeks’ service in order to be able to make a request for flexible working, making the right to request flexible working a day one right.

The new right will come into effect for flexible working applications made on or after 6 April 2024. Employers should make sure that flexible working policies are amended to take account of this change.

Carer’s leave

What is changing?

The Carer’s Leave Act 2023 provides employees who have caring responsibilities for dependants with a long-term care need with a right to one week’s unpaid leave per year.

What are the main features?

  • Introduce one week’s unpaid leave each year for employees who are carers, for the purpose of caring for a dependant, or arranging care for a dependant, with long-term mental or physical health needs.
  • It will be possible to take the leave in periods of a day or half a day.

What will this mean for employers?

Employers should be prepared to incorporate carer’s leave into their family-friendly policies and procedures. The other key aspects of the new right are that:

  • carer’s leave will be a “day one” right, meaning that staff will not require a minimum period of service;
  • entitlement will depend on the relationship between the carer and the person being cared for, with a focus on dependants with a long-term care need or terminal illness;
  • eligible employees will be able to take five days’ carer’s leave per year, as individual or half days; and
  • employers will be able to ask employees to self-certify that they are eligible, with no evidential requirements (for example details of the dependant’s condition or caring activities being undertaken).

Timetable

The Carer’s Leave Act received Royal Assent on 24 May 2023. The draft Carer’s Leave Regulations 2024 to implement these reforms were laid before Parliament on 13 December 2023 and are due to come into force on 6 April 2024.

Pregnancy and maternity leave – extending redundancy protection

What is changing?

Employees on maternity leave already have the right to be offered any suitable alternative vacancy in a redundancy situation. The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 provides for greater protection against redundancy during pregnancy and for six months after return to work from maternity leave as well as certain other family-related leave.

What are the main features?

  • Ensure that the redundancy protection period (the right for pregnant women and new mothers on maternity leave to be offered suitable alternative employment in a redundancy situation) applies from the point that an employee informs their employer that they are pregnant (whether this is done orally or in writing).
  • Extend the redundancy protection period until 18 months after the birth of the child (or adoption placement) for employees returning from maternity leave, adoption leave or shared parental leave.

What will this mean for employers?

Employers will need to review their redundancy policies and procedures to ensure that they cover the right for those on maternity, adoption or shared parental leave to be offered any suitable alternative vacancy on redundancy.

HR professionals and line managers implementing a redundancy process will also need to ensure that they take account of the extended redundancy protection period where any employees at risk of redundancy are pregnant or have recently returned to work from maternity, adoption or shared parental leave.

The changes in relation to maternity leave will double the current period of redundancy protection from one year to around two years, assuming the pregnant employee advises the employer of their pregnancy at about the 12-week point and takes one year’s maternity leave. This could substantially increase the number of employees who must be given priority for any suitable alternative vacancy on redundancy, particularly in workplaces where the majority of employees are women.

Timetable

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 received Royal Assent on 24 May 2023. The draft Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024 were laid before Parliament on 11 December 2023 and are due to come into force on 6 April 2024.

Strengthening workplace sexual harassment laws

What is changing?

The Worker Protection (Amendment of Equality Act 2010) Act 2023 provides for a positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment.

What are the main features?

  • Introduce a mandatory duty on employers to prevent sexual harassment in the workplace.
  • Provide tribunals with the power to increase compensation by up to 25% where a claim of sexual harassment is upheld and the employer has breached this duty.

What will this mean for employers?

Employers are already liable for harassment carried out by their employees at work, unless they have taken “all reasonable steps” to prevent the harassment. However, a positive duty on employers to take steps to prevent sexual harassment should prompt employers to review their policies and procedures to ensure that:

  • the equality, diversity and inclusion policies that they have in place will meet the new requirements;
  • those policies are implemented in practice;
  • their workforce is made aware of the policies;
  • employees and line managers are provided with equality, diversity and inclusion training;
  • there is a system in place for dealing effectively with employee complaints; and
  • their policies are reviewed as appropriate.

HR professionals should also look out for a new statutory code of practice on sexual harassment. The Equality and Human Rights Commission is developing the new code and is expected to consult on a draft version before it is introduced.

Following amendments to the original Bill, the Act does not introduce employer liability for third-party harassment of employees.

Timetable

The Act received Royal Assent on 26 October 2023 and is expected to come into force one year after that date.

Direct TUPE consultation for small businesses and where fewer than 10 employees transfer

Implementation date: For transfers on or after 1 July 2024

The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (SI 2023/1426) came into force on 1 January 2024.

The regulations amend the Transfer of Undertakings (Protection of Employment) Regulations 2006 so that the requirement to hold elections for employee representatives for TUPE consultation will be removed for small businesses and for transfers of fewer than 10 employees.

Where they do not already have employee representatives in place, employers will be able to consult directly with employees on TUPE transfers:

  • if the organisation has fewer than 50 employees (i.e. small businesses); or
  • for organisations of any size, if fewer than 10 employees are to transfer.

The change will apply to TUPE transfers taking place on or after 1 July 2024.

Revision to Paternity Leave Regulations

After announcing proposals to make changes to paternity leave rights in summer 2023, the government has now published draft legislation in the form of the Paternity Leave (Amendment) Regulations 2024.

The Regulations make the following changes:

  1. employees will be able to take their two-week paternity leave entitlement as two separate one-week blocks (rather than having to take just one week in total or two consecutive weeks).
  2. employees will be able to take paternity leave at any time in the 52 weeks after birth (rather than having to take leave in the 56 days following birth).
  3. employees will only need to give 28 days’ notice of their intention to take paternity leave (reduced from the previous position that required notice to be given 15 weeks before the Expected Week of Childbirth (EWC)).

The Regulations are stated to apply in all cases where the EWC is on, or after, 6 April 2024. These proposed changes are therefore due to take effect at the same time as other family-friendly legal changes. These changes include the introduction of carer’s leave, changes to flexible working rights, and the extension of redundancy protection to include pregnancy, and a period of time following maternity, adoption and shared parental leave.

5 facts about fit notes

Fit notes are the written notification of fitness to work which must be provided by an employee when they are absent from work due to sickness. Here are 5 things you should know about fit notes:

  1. By law, a fit note must be presented to the employer for absences extending beyond seven consecutive days. Employers can choose to include a shorter period in their own policies and contracts. Seven days is the default.
  2. A fit note issued in the first six months of incapacity cannot exceed three months in duration. Aside from this, there is no limit on the length of time for which fit notes can be issued.
  3. The fit note doesn’t contain an unconditional “fit for work” option. Therefore, an eligible healthcare professional can no longer use it to sign an employee back to work with a clean bill of health. Instead, the employee may be declared ‘not fit for work’ or ‘may be fit for work’.
  4. Since 1 July 2022, a wider range of healthcare professionals have been able to sign fit notes. Doctors, registered nurses, occupational therapists, pharmacists, and physiotherapists can all sign them.
  5. Providing a fit note is not a strict requirement for eligibility for statutory sick pay. Employees are able to self-certify their absence for the first seven calendar days for SSP purposes. After that, employers have to have some evidence of incapacity to administer SSP but they are free to decide what form that takes. It does not have to be a fit note (although, in practice, it usually will be).

And finally…

The politics which surround the work fridge and its contents are often the cause of significant workplace friction. Employees who have their lunch taken and eaten are often seriously aggrieved. Usually, HR can resolve such issues by way of a polite note on the fridge door and a suggestion that food is named.

However, one employee in the US recently revealed on Reddit that he had taken more dramatic steps to identify who had been eating his sandwiches. Upset that his lunch kept being taken from the work fridge, he laced his sandwich with prescription-strength laxatives. He then reported to HR that his lunch (and his medication) had been stolen. The culprit was found by HR in a nearby toilet. HR took no action against the employee who had set-up the prank but sacked the sandwich-stealer (who was also, according to the Reddit article, interviewed by the police in relation to theft of prescribed medication). Although this example is an extreme one, it is a reminder to HR that theft of any sort within the workplace should be taken seriously. As one person commented on the Reddit article – “This is why employers shouldn’t disregard lunch thieves. It’s only a matter of time until they turn their thieving hands on the employers’ things or somehow cause damage to their employer.”

If you would like any further information of the topics covered in this bulletin do not hesitate to contact our consultants on 01942 554081.

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