LEGAL
Preparing for the ‘biggest overhaul in employment law in 20 years’
By Katie Ash (pictured), Head of Employment Law at Banner Jones
For business owners and decision makers, the period leading up to the financial year end is usually a demanding time. There are many key choices to be made and, while not ideal, it is easy to
see why many businesses pour much of their effort and energy into finding the right candidate with the rights skills and the right attitude, before parking any associated actions relating to ‘onboarding’ said worker until they officially join the firm. However, as we move towards the end of the financial year and embark
on a new decade, what was once considered to be just ‘not best practice’ could end up landing employers in hot water; with major employment- related legislative changes due to come into force in April. Amid the political uncertainty of recent years, many business owners and
senior decision makers can be forgiven for not being across – or even aware of – what Government has dutifully named ‘The Good Work Plan’. In a nutshell, it is intended to strengthen workers’ rights and ensure fair
and decent work is available to all, including agency staff and temporary workers. Its three key considerations include: fair and decent work; clarity for employers and workers; and fairer enforcement. Great straplines, but what does it actually mean for employers and their
legal obligation to their staff? Here are some of the key changes afoot.
RIGHT TO REQUEST A STABLE CONTRACT: While there is recognition within the legislation that many British businesses rely on casual labour and flexible contracts, there’s a general consensus that the flexibility is not as favourable for the employee or worker as it is for the employer – a structure resulting in financial instability for many. Amid plans to ensure workers can access fair and decent work, the Good
Work Plan stipulates any worker operating under any guise (zero hours, temporary etc) has the right to request a more stable contract. However, it’s important to note this is a right to request, not a
requirement to grant. The most important thing is to have a robust process to review and respond to such applications and that the decision is fair and appropriate. Simply refuse and face the consequences.
CONTRACTS AND STATEMENT OF RIGHTS: These changes are designed to ensure there is greater transparency between the employer and the employee with regards the role, responsibilities and a worker’s rights.
The major legislative shift is that every worker must receive a statement
of their rights on appointment. This is intended largely for agency workers and will mean they are better informed with regards what they are signing up to. As an employer, contracts must be delivered on day one, not a week or
so down the line, so preparation is key. Employees should also receive their contracts at the start – if not in
advance – of their first day of work, and every effort should be made to ensure these are signed, returned and filed so everyone is working from the same hymn sheet. If, for whatever reason, that doesn’t happen, a paper trail to demonstrate
the employee received and was prompted to return a signed copy will be key should anything go wrong down the line and an employment tribunal becomes involved.
EMPLOYMENT STATUS TESTS: This change is key in any business that employs ‘casual staff’. Under the new legislation there will be an increased emphasis on
businesses to correctly classify worker status. This is intended to ensure workers have access to the right rights, so to speak – including pensions, holiday pay, maternity leave etc. A failure to adhere will also come with increased penalties, with the maximum fine that can be imposed by a tribunal rising to £20,000. So, it’s easy to see why it’s worth getting it right, right away. These are just a few of the changes afoot, but while it is true that this
new legislation brings with it many new, and improved, employment rights, it’s important to point out that it is not likely to be as overwhelming and all-consuming as one might first think. Many businesses will already adhere to the legal requirements simply by
following best practice, and others will need to make just minor changes to bring themselves in line. However, the Good Work Plan is really intended to encourage employers
to do more than just the bare minimum. Many businesses will want to embrace the changes and be seen by their
employees and workers alike as a good and fair place to work. To that end, it’s the ideal opportunity to stop and take stock of documentation and policies. If anything does need reviewing or updating, there is still time to seek advice and action accordingly.
business network February 2020 87
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