26 January 2016

HR Report - Annual Review

2015 has seen major employment law developments in the UK and 2016 is shaping up to be an equally challenging year in the HR arena.

New legislation implemented over the last year has introduced Shared Parental Leave, and the Government has now indicated that this may be extended to working grandparents in 2016. A ban on exclusivity clauses in Zero hours’ contracts has been implemented and further enforcement provisions are expected. A controversial Trade Union Bill has also been introduced and is making its way through Parliament. The Modern Slavery Act 2015 has also received Royal Assent and will impose a requirement on certain businesses to publish an annual anti-slavery and human trafficking statement. The Governments new Fit for Work scheme allows for referrals to an Occupational Health provider, who will assess an absent employees fitness and make recommendations for return to work after long term sickness absence. The challenge to tribunal fees continues with not only the prospect of an appeal to the Supreme Court but also a Government review and a Select Committee enquiry. The Government has also consulted on mandatory Gender Pay Gap reporting and its proposals are expected before the end of the year.

Anticipated Changes include:

The implementation of the National Living Wage [NLW]  in April 2016, when all workers aged  25 years and over will be entitled to a minimum ‘Living Wage ‘ of £7.20 per hour. This represents a rise of 50p relative to the National Minimum Wage [NMW] rate and will increase earnings for a full time worker to £910 per annum on current NMW.

The NMW will continue to apply for those aged 21 to 24.

National Minimum Wage rates from 5 October 2015

Over 21 yr old £6.70

18-20 yr old £5.30

Under 18 yr old £3.87

Apprentices £3.30

Case law developments have also been significant in the last year with the Woolworth’s case finally reaching a conclusion in the ECJ, and the issues of Overtime and holiday pay calculations and carry-over of holiday accrued during sickness absence again being considered in the courts. There have also been a couple of important cases interpreting the ‘public interest’ test in relation to protected disclosures for the purpose of whistleblowing.