15.10.2024

The publication of the Employment Rights Bill (the Bill) on 10 October marked a significant step towards the Government’s implementation of the employment law reforms set out in its ‘Plan to Make Work Pay: Delivering A New Deal for Working People’. 

See here to read thoughts from our legal and policy experts on the Bill, together with the document the Government published alongside the Bill - Next Steps to Make Work Pay.  You may also find it helpful to read the e-alert we published on the day the Bill was introduced to Parliament. These articles outline key points HR should be aware of in relation to the forthcoming changes, together with steps HR can start taking to prepare for the extensive changes to come.  

Make UK’s Policy Team has been engaging closely with Government, trade unions and other representatives discussing the detail of the Government’s Plan to Make Work Pay to ensure that the Government’s proposals benefit both manufacturing employers and their employees. Most of the changes will not come into force until 2026, and number of key measures require further consultation and secondary legislation. We will continue to represent the views of Make UK members to Government, sharing insights, suggestions, and concerns with them via meetings, roundtables, and the upcoming consultations on proposed changes to the law. 

In the meantime, if you are a Make UK subscriber, our legal experts will keep you updated on key points that arise over the coming weeks and months. You can also speak to your regular adviser with any queries you may have about these various employment law proposals and to request further consultancy support. Make UK subscribers can access guidance on a wide range of employment law topics including template policies and drafting guidance in the HR & Legal Resources section of our website, which will be updated as and when new measures are finalised and implemented. 

If you are not a Make UK subscriber, you can contact us for further support. Please click here for information on how we can help your business. 

From 26 October 2024, the Worker Protection (Amendment of Equality Act 2010) Act 2023 will place a new positive duty on employers to take reasonable steps to prevent sexual harassment at work.  

This new duty will be enforceable by the Equality and Human Rights Commission (EHRC), and employment tribunals will have the power to uplift the compensation awarded in sexual harassment cases by up to 25% if they find that an employer has failed to comply.   

To read more about the new duty, and the support Make UK can provide to employers, read our e-alert here.  Keep in mind too that the new Labour Government plans to take further action to tackle workplace sexual harassment in due course (see here).   

Make UK, as your trusted partner, can provide a package of support to employers to support the implementation of this new duty.  We offer a suite of training covering all levels - from front line to director - which can be delivered virtually or face-to-face, together with HR and management workshops and visioning sessions (for planning purposes and on-going review and monitoring of the steps taken).  

In addition, we can provide template documentation, including an anti-bullying and harassment policy (including management guidance notes) and an equality policy, workplace risk assessments (which we can offer in conjunction with our health and safety team) and workforce surveys (including Pulse surveys and focus groups). This is alongside our full suite of ED&I training and consultancy to support your general duties under the Equality Act 2010. For further details, you can speak with your regular Make UK adviser, contact us and/or see Sexual Harassment | Make UK.  

On 12 September 2024, the Supreme Court handed down its keenly awaited judgment in Union of Shop, Distributive and Allied Workers (USDAW)  and others v Tesco Stores.  

If you have been following the progression of this case, you will know that it centres on Tesco’s decision in 2021 to terminate the employment contracts of certain individuals whose contracts included an entitlement to ‘Retained Pay’ (which was described as a ‘permanent’ benefit), and to offer re-engagement on terms which did not include that Retained Pay. 

As a reminder, back in 2007, when Tesco reorganised its distribution centres, it negotiated with USDAW that a monthly ‘Retained Pay’ payment would be given to any staff who agreed to relocate (as an alternative to a lump sum redundancy payment). This ‘Retained Pay’ was described as permanent. However, in 2021 Tesco tried to remove the Retained Pay by threatening to dismiss the individuals concerned and offering re-engagement on new terms which did not feature the Retained Pay.   

At that time, USDAW obtained a High Court injunction stopping Tesco from terminating the affected contracts of employment. Tesco successfully appealed to the Court of Appeal.   

The Supreme Court has now re-instated the High Court injunction, agreeing with the High Court that Tesco’s right to terminate the employment contracts was qualified by an implied term that Tesco’s right to dismiss could not be exercised for the purpose of depriving employees of the right to Retained Pay. 

Although this decision only related to a small proportion of Tesco’s employees, the cost to Tesco of defending these claims will have been significant, in terms of not only legal fees but also reputational damage. This case is yet another reminder to employers therefore of the importance of treading carefully when contemplating dismissal and re-engagement - particularly in the light of the Statutory Code of Practice on Dismissal and Re-engagement which came into effect on 18 July 2024. This sets out that ‘fire and rehire’ should only be used as a last resort, and requires early, meaningful consultation whenever you are considering dismissal and re-engagement even for just one employee.  As outlined here, the Labour Government intends to strengthen the law and provide a more effective remedy for employees where ‘fire and rehire’ is used to change terms, so this topic is likely to remain under close scrutiny.  

If you are a Make UK subscriber, you can speak with your regular adviser about change of terms queries (including fire and re-hire practices).   

If you are not a Make UK subscriber, you can contact us for further support on this topic or to access our resources. Please click here for information on how we can help your business. 

“Anticipatory breach” is a term used to describe a situation where an employer has indicated clearly to an employee that they intend to breach the employment contract in the future. If the breach is serious enough to amount to a ‘fundamental’ or ‘repudiatory’ breach of contract, the employee can resign and claim constructive dismissal (i.e. that this amounts to a dismissal), without needing to wait until the breach actually occurs.

For example, if you have informed the employee that you intend to impose new shift patterns at the end of the month even though you have no contractual right to do so, the employee may be entitled to resign immediately and claim constructive dismissal. The same principle could apply if you have informed the employee that you intend to withdraw their contractual overtime premium in six months' time, If, however, an employee 'jumps the gun' by resigning on the strength of a rumour and before you have indicated your clear intention to breach the contract in a fundamental way, that will amount to an ordinary resignation rather than a constructive dismissal.

If you are a Make UK subscriber, you can speak with your regular adviser about dismissal and breach of contract related queries and/or access further information in our HRL Resources.

If you are not a Make UK subscriber, you can contact us for further support on this topic or to access our resources. Please click here for information on how we can help your business. 

The Labour Government has ordered the Migration Advisory Committee (MAC) to review the minimum income requirement for a foreign spouse or partner visa (see the call for evidence here).

In April 2024, the Conservative Government increased the minimum income threshold from £18,600 to £29,000 per year, with a view to reducing legal immigration. Further increases were due to take effect, however the Labour Government has said there will be no further changes to the £29,000 threshold until a review has been completed (see here). In the Government’s view, there is a “need to balance a respect for family life whilst also ensuring the economic wellbeing of the UK is maintained”. 

If you are a Make UK subscriber, you can speak with your regular adviser about immigration related queries. If you are not a Make UK subscriber, you can contact us for further support on this topic or to access our resources. Please click here for information on how we can help your business.