REWARD
Danny Done, managing director of Portfolio Payroll , provides an update on the plethora of upcoming changes employers should be starting to plan for now* It’s all change
A lready in 2023, employers have had to navigate increases to the national minimum wage rates and other statutory payments from April, along with the extra bank holiday to commemorate the King’s coronation in May. And there’s plenty more on the agenda employers will need to prepare for, thanks to the vast amount of new legislation coming out of the Houses of Parliament. Employers are in the advantageous position of having time to prepare for new employee rights, because it’s unlikely we’ll see the implementation of new rights until April 2024 at the earliest. But recent developments have confirmed the changes in the law books. The debating stage is over, and several changes will take place. So, what’s happened? Employment (Allocation of Tips) Act 2023 This became law on 2 May 2023. When in place, this law will make it unlawful for employers in hospitality to keep any money received as tips from customers, whether by cash or card, and regardless of if it’s labelled as a service charge or gratuity. This money will have to be fairly allocated to workers. Employers will have a duty to keep accurate records of how tips have been fairly allocated; and workers will have the right to bring a claim if they don’t. Carer’s Leave Act 2023 This became law on 24 May 2023. The Act, and subsequent Regulations which are still to be drafted, gives qualifying employees the right to take up to five days unpaid leave per year to provide care for someone who falls into the definition of a ‘dependant’, like a spouse, civil partner or child. Protection From Redundancy (Pregnancy and Family Leave) Act 2023 This became law on 24 May 2023. The purpose of the Act is to extend the ‘protected period’; a time during which someone on
l requiring employers to consult with the employee before rejecting a request l now allowing two requests in any 12-month period l shortening the employer response time from three months to two months l removing the need for employees to detail how the employer will deal with the impact of the request. Changes to European Union law The government plans to introduce rolled-up holiday pay as a lawful practice, meaning employers will be able to pay holiday pay in every pay packet instead of at the time the worker takes holiday. It’s also proposed to merge the two separate elements of statutory minimum annual leave entitlement into one, to end the different treatment afforded to each one. The position on record keeping requirements will be clarified, and the proposal is that businesses won’t be required to keep a record of daily working hours. Additionally, the government is considering the removal of the requirement to consult with elected representatives, as part of a Transfer of Undertakings (Protection of Employment) Regulations (TUPE) transfer, for businesses with fewer than 50 people and all businesses where the TUPE affects fewer than ten employees. All the above were subject to a consultation period which ended in early July and the government response is eagerly awaited. Non-compete clauses Non-compete clauses, which restrict an ex-employee from working for a competitor for a period will be limited to three months only. According to the latest government information, this is a matter which will be put forward ‘when parliamentary time allows’. n *Please note that all information is correct at the time of writing, and progress may have been made in relation to any of the items above since then.
certain types of family-friendly leave is given enhanced rights where the employer is conducting a redundancy exercise. Currently, this means that an employee on maternity leave must be offered a suitable alternative vacancy, where one exists, ahead of all other employees. The new law will extend that period to begin at the time the employee tells their employer they’re pregnant and will end 18 months after the birth. The 18-month window will also apply to adoption and shared parental leave. Neonatal Care (Leave and Pay) Act 2023 This Act became law on 24 May 2023, and this right will allow parents of babies admitted to hospital before they’re 28 days old, and for at least seven continuous days, to take an additional period of leave on top of their existing maternity / paternity rights. For every week the baby is in hospital, the parents will be entitled to an extra week of leave, up to a maximum of 12 weeks.
What are we still waiting for?
Holiday entitlement In January, a consultation was launched seeking views on proposals to overturn the effect of the Supreme Court’s decision in Harpur Trust v Brazel. The current position, because of this case, is that holiday entitlement for part- year workers (for example, those who work term time only) is the same as those who work all year round. The proposal contained in the consultation is to allow the pro-rata reduction of the entitlement. The government is still analysing the consultation feedback. Changes to flexible working The government has committed to the following changes to the current flexible working system, but the parliamentary process has yet to conclude: l making flexible working a day one right
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 48
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