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12 November 2024

466: What’s new in employment law?

Government to repeal the Strikes (Minimum Service Levels) Act 2023 

On 6 August 2024, the government announced that the Strikes (Minimum Service Levels) Act 2023 will be repealed. This will be implemented through the Employment Rights Bill (read our summary of the key points of the Bill here). Minimum service levels were introduced by the previous government for strikes in certain public service sectors. The departments most impacted by strikes (Education, Health, Transport, the Home Office, and Energy) have in the meantime been informed that the government does not support minimum service levels and have been encouraged to engage in dialogue with trade unions. In any event, according to the government, no employer has used minimum service levels to date. The Employment Rights Bill also set out the government’s proposals on unions and collective action.

Response to the 2023 consultation on the panel composition of Employment Tribunals and Employment Appeal Tribunal (EAT) published

The Senior President of Tribunals has published a response to the 2023 consultation on the panel composition of Employment Tribunals and the EAT together with a draft Practice Direction, which came into effect on 29 October 2024. From this date, for final hearings in the Employment Tribunal, a judge will decide on a case-by-case basis whether the claim will be heard by a panel or a judge sitting alone. If a case is undefended, the default will be that the case will be heard by a judge alone. In addition, a leadership judge may opt for two judges for training and development purposes. Preliminary hearings will continue to be heard by a judge alone by default, but with a discretion for the judge to sit with a panel. The position in the EAT will also be unchanged. If a case was listed for a hearing before 29 October 2024, and the hearing takes place fully or partly on or after that date, then the Tribunal may apply the law in force before this Practice Direction was made. Guidance will be issued to judges to ensure consistent application of these new principles.

Consultation on proposed amendments to the Employment Tribunal Rules of Procedure 2013 

The Tribunal Procedure Committee opened a consultation on proposed amendments to the Employment Tribunal Rules of Procedure 2013 relating to the provision of written reasons for decisions and judgments. These changes are aimed at reducing the current backlog of Tribunal claims and the time spent waiting for final decisions. Proposals include removing the requirement for judges to sign written reasons and written records of decisions and allowing judges to give either ‘short form’ or ‘full’ reasons for judgements, depending on the complexity of the case. Short-form reasons would include a brief explanation of the decision, whereas full-written reasons would provide detailed accounts where judgment has been reserved, requested by the EAT or a higher court, or where it is in the interests of justice. Short-form reasons will not need to be included in the register of judgments. It is also proposed that where an oral judgment is given at a hearing, only the unsuccessful party will be entitled to apply for written reasons. In addition, where an oral decision is made at a hearing, written reasons will not be provided unless a party requests them at a hearing or within 14 days of the sending of the written record of the decision. The consultation ran until 22 October 2024. 

Government commencement regulations now require employers to distribute tips to workers in a fair and transparent manner 

The government has made commencement regulations bringing into force the remaining provisions of the Employment (Allocation of Tips) Act 2023 on 1 October 2024, together with the Statutory Code of Practice on Fair and Transparent Distribution of Tips. As of this date, employers are required to distribute tips to workers in a fair and transparent manner and to pass on tips, gratuities, and service charges in full, without deductions. Employers must also have a written policy on how tips are dealt with and keep a proper record of all tips paid and how they have been allocated and distributed. The Labour Party indicated during the general election campaign that they would further strengthen the law in this area, but we do not yet have details of any firm proposals.

Employers have new statutory duty to protect employees from sexual harassment 

As of 26 October 2024, employers are subject to a new statutory duty to take reasonable steps to prevent sexual harassment of employees, including by third parties. Following consultation earlier this year, the Equality and Human Rights Commission (EHRC) has recently issued new guidance on this duty to help employers understand their obligations. The EHRC stresses that employers must be proactive in assessing risk, identifying necessary actions, and regularly reviewing relevant processes. Recommended steps set out in the guidance include developing and communicating a robust anti-harassment policy that includes third-party harassment; undertaking regular, specific risk assessments; being proactively aware of what is happening in the workplace and any warning signs of harassment; and monitoring and evaluating the effectiveness of these actions. Failure to comply with this preventative duty may lead to an increase in compensation of up to 25% if an employee brings a successful sexual harassment claim. The EHRC may also take separate enforcement action if there is evidence that an employer has failed to take reasonable steps to prevent sexual harassment.

Physical visa and immigration permit documents to be phased out by the end of the year

The Home Office is phasing out physical visa and immigration permit documents by the end of 2024 in favour of electronic immigration status records (eVisas). Previously, the Home Office requested those affected to wait for an invitation before applying for an eVisa account. However, updated guidance states that this no longer applies, and anyone who needs an eVisa should sign up now. The Home Office now advises that anyone with a biometric residence permit that expires on 31 December 2024 can create a UKVI account and then sign in to the ‘view and prove service’ to access their eVisa. To maintain a statutory excuse against liability for illegal employment, employers must carry out follow-up right to work checks online for any employees who proved their right to work in the UK before 6 April 2022 based on a physical visa document with an expiry date of 31 December 2024. 

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