myHRdept. ’s Post

Redundancies are hot in the press again with employer’s failure to follow proper consultation procedures being a particular theme in employment tribunals. In Foley Vs Digital River, a US-owned company, the Irish labour court concluded that Digital River had “carried out a box-ticking exercise to give the illusion that it was following fair procedures required in implementing a redundancy.” The result was a £142K compensation award against the employer. Elsewhere, a Glasgow music venue owner was fined the maximum 90 days pay per employee for failing to follow consultation procedures in an action bought by Unite union, who are also in the press this month claiming that Whitbread are failing to consult properly over proposals to cut 1500 jobs this summer. It’s important to follow correct redundancy consultations, and JCHR’s combined payroll and HR outsourcing service assist employers to do precisely that. You can read more about these cases and the conclusions employers can draw here: https://lnkd.in/ecSWHaRe

Redundancies are everywhere it seems and lots of recent tribunal decisions too, with employer’s failure to follow proper consultation procedures being a particular theme in employment tribunals. Our article (published on JCHR's website, our combined payroll and HR outsourcing service) looks at 3 recent cases, one from each of England, Scotland and Ireland. Just need to find a Welsh case and we'll have the full set! You can read more about these cases and the learnings for employers (on how not to do redundancies) here: https://lnkd.in/ecSWHaRe

The Labour government has committed to releasing the Employment Rights Bill— a central part of its manifesto— within 100 days of coming into office. This promise was reiterated by Deputy Prime Minister Angela Rayner during Labour’s party conference in Liverpool yesterday. If the Bill is published at the end of the 100-day window, it will probably be released on Thursday, 10 October 2024, just in time for our annual Employment Law update session on 15 October 👏 During the webinar, which will primarily focus on our key sectors including social care, housing, local government and charity, our employment and pensions team will: 🔊 update you on the key developments coming our of the Employment Rights Bill 🔊 cover legislative protocols that could reshape the way businesses and employees operate 🔊 discuss the impact of AI on employment practices 🔊 address the ongoing issue of balancing competing rights within the equalities framework 🔊 examine the implications of National Minimum Wage developments and the Working Time legislative framework 🔊 update you on pension reform and how shifting immigration policy may affect your workforce. To register, please use the link below:

Potential Upcoming Employment Law Changes: What You Need to Know The next UK general election is on the horizon and the recent local results suggest a change in government could be on the cards. We're keeping a close eye on the Labour Party's proposals for changes to employment laws as these changes could significantly impact how businesses hire and manage talent. Some of the key changes could include: ●  Flexible working from day one ●  A ban on ‘fire and rehire’. ●  Broadening of statutory sick pay entitlement ●  Longer timeframes to bring employment tribunal claims. ●  Removing the qualifying period for individuals to claim basic employment rights such as unfair dismissal and redundancy pay. We think the change to the qualifying period is really positive news, it’s fairer for the candidates and there is no reason why it should impact negatively on hirers recruitment plans. Our Co-Founder & Managing Director, Lucy James, points out, "If these changes come into effect, it is great news for candidates and should also be viewed as a positive for those in a hiring position. However, it does mean you have to be even more sure the candidate is the right hire before you commit.” “If you are a hirer, you should review your attrition rates. If these figures are high, it could be an indication that you may need to change your approach, particularly at the early stages of the process. For example, are you structuring the roles you want to hire into properly? Do you plan your interviews effectively? These are all important steps to consider to ensure your hiring process is as efficient as possible and gets you the right candidate.”  What are your thoughts on the potential changes to employment laws? Click here to read the full article - https://lnkd.in/eSXd42sd #UKPolitics #Recruitment #EmploymentLaw #HiringTrends #BusinessGrowth

Should people be charged for bringing a case to an employment tribunal? The government wants to introduce fees but is coming up against opposition from trade unions and other workers’ groups.  It’s a subject with something of a chequered history. Employment tribunal fees were first introduced in July 20133. However, in July 2017, the Supreme Court quashed these fees following a challenge by the union Unison. The court ruled that the fees were unaffordable for many claimants and were disproportionate for low-value claims. Fast forward to 2024, and the government has proposed reintroducing fees in the Employment Tribunals and the Employment Appeal Tribunal, starting with a £55 charge to issue a claim at the employment tribunal or employment appeal tribunal. This move – which is still open to consultation and includes exemptions for those on low incomes – aims to ensure users contribute towards the running costs of the tribunals, aligning it with other court and tribunal systems where users already pay fees. But it’s not been greeted with universal approval. In a joint statement, 48 organisations called on the government to urgently reconsider its plans. The groups warned that introducing fees would encourage exploitation of workers, stating: “We believe this will deter many from lodging worthy claims and gives a green light to bad employers to exploit their workers. “Bad employers are being given the go-ahead to undercut good ones, safe in the knowledge they are less likely to face claims in the employment tribunal. “Tribunal fees risk pricing many workers out of workplace justice.” Organisations signing the statement included the TUC, Citizens Advice, Joseph Rowntree Foundation, Fawcett Society, Maternity Action, Women’s Budget Group and Liberty. A Ministry of Justice spokesperson said: “Our consultation proposal to introduce a modest fee of £55 would help save the taxpayer money and ensure our court system continues to run effectively and efficiently. “We are protecting access to justice for all and have launched a more generous scheme providing financial help for those who cannot afford to pay the proposed fees.” In addition to the introduction of fees, there have been significant changes in the compensation limits for Employment Tribunal awards. From 6th April 2024, the maximum compensatory award for unfair dismissal claims has been increased from £105,707 to £115,115. The statutory limit on a week’s pay has also been increased from £643 to £700. Other figures include the minimum basic award for unfair dismissal cases, which has risen from £7,836 to £8,533, and the statutory guaranteed payment increase from £35 to £38 per day. #employmentlaw #employmenttribunal #hrconsultancy

The employment landscape in Jersey is constantly evolving, with the last few months alone seeing several key legislative changes.   In this article, Jersey-based employment partner Daniel Read outlines the key developments, including an increase to the minimum wage and statutory redundancy pay caps, as well as potential changes on the horizon with 2024 set to be a busy year.   Read about it here: https://lnkd.in/eNNiFSv7

Redundancy? - check that employment agreement – whether it’s redundancy or any other employment right or obligation. Two recent high-profile cases have left the employer embarrassed at having failed to observe the process they have agreed to in their employment agreements. In Television New Zealand v E Tū [2024] the employer was unable to proceed with staff layoffs because they had failed to follow their own agreed process. The Court noted that “the wording of [the clause] is … uncommon”. That didn’t matter. When interpreting the employment agreement “the aim is to ascertain the meaning which the agreement would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the agreement." "This objective meaning is taken to be that which the parties intended. While the meaning of a clause in an agreement may appear clear, meaning is informed by context.” The Court held that the clause in question – “imposes ….. more onerous obligations than would generally apply under statute or common law.” In PSA v Ministry of Education [2024] the union successfully argued that there was no attempt to engage them as an active participant in the change – they were used merely to disseminate information when a far more engaged process was envisaged which made the union an active participant in the change. In both cases the employer was found to not have complied with the employment agreement and compliance orders were granted requiring the employer to fulfil their obligations. Moral of these stories – be completely familiar with the terms of your employment agreement. Get experienced advice from practitioners experienced in the bargaining process. Reliance solely on statute and case law will not be sufficient, if you’ve extended employee (and union) rights beyond these. 

Check out our next article on the employment reforms below. Do feel free to reach out if you have any questions! The evolving nature of business requires employers to adapt to economic, technological, and regulatory changes, which can sometimes involve altering employment terms or redundancies. The UK’s Employment Rights Bill (ERB) addresses practices like "fire and rehire," where employees are dismissed and then re-engaged under different terms. While it doesn't outright ban this practice, it imposes strict conditions, making dismissals for failing to agree to contract changes automatically unfair unless employers can prove they face severe financial difficulties. Additionally, the ERB expands collective redundancy consultation requirements to cover all redundancies across a business, not just at a single establishment. This makes the consultation process more complex for multi-site employers. The government also plans to review consultation periods in the future. Next steps involve a consultation on enhancing penalties for failing to meet collective consultation duties, with feedback due by December 2, 2024. Employers may need to consider negotiated changes or rely on existing contractual flexibility, but these paths carry legal risks. For further insights, employers can consult with legal experts.

Taking effect from April 6, the limit on the compensatory award for unfair dismissal rises from £105,915 to £115,341. Also, the maximum amount for one week’s pay for the purpose of calculating redundancy payments rises from £669 to £729. The increased limits relate to a range of employment rights including: statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases. The Minister said: “One of my leading priorities is to protect the rights and entitlements of workers and employees. This Order will ensure that if they find themselves in the unfortunate circumstances of receiving these types of payments or awards, they will be compensated fairly and that their rights will be protected by law. “While the payments cannot undo the events that are the cause of them being made, it is my hope that the increased limits will go some way to help those entitled workers and employees at what is clearly a difficult time.” Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI).

👑 King's speech - Key HR take-aways 👑 Really interesting and informative article about the King's speech earlier today and the likely impacts on Employment Law and therefore HR Teams - sharing for my network 📑 #employmentlaw #hr #hrrecruiter