Employment Update
Employers need to be aware of some important recent and forthcoming changes to employment law.
TUPE
Changes to TUPE information and consultation requirements apply to business transfers and service provision changes taking place on or after 1 July 2024. Provided that there are no appropriate representatives already in place, small businesses (those employing fewer than 50 employees) and all businesses where fewer than 10 employees are transferring, are now able to inform and consult directly with employees affected by a business transfer or service provision change.
Previously only microbusinesses (those employing fewer than 10 employees) were able to inform and consult directly with the affected employees and avoid the need to elect representatives.
Dismissal and Re-engagement Code of Practice
The Dismissal and Re-engagement Code of Practice comes into force on 18 July 2024. Employers seeking to change terms and conditions of employment, who envisage they may opt to dismiss and re-engage employees who do not agree the changes, will need to comply with the Code or risk a 25% increase to employment tribunal compensation. The Code will not apply where the prospect of dismissal and re-engagement was raised by the employer before 18 July 2024.
For further information on the Code of Practice, click here.
New duty to prevent sexual harassment
From 26 October 2024, employers will be under a new statutory duty to take reasonable steps to prevent harassment of their employees in the course of their employment. The Equality and Human Rights Commission (EHRC) will be updating its Code of Practice and guidance to reflect the new duty and has issued a consultation on its updated guidance. Responses are required by 6 August, with a view to the final version being published in September.
An unreasonable failure to comply with the Code could result in compensation being increased by up to 25%. The Equality and Human Rights Commission will also be able to take enforcement action against employers for breach of the new duty.
New Labour Government
If you would like to know about Labour’s plans for employment law and implications for employers, you can read our insight here.