Hot Topics New Employment Laws: Exactly What You Need to Know Before October 2024
By Kimberly Bradshaw (CEO, Spotlight HR.)
September 2024.
As the world of work continues to evolve, the UK government is introducing a series of legislative changes that will reshape how businesses manage their employees. From how tips are distributed to ensuring fair working conditions, these new laws are set to significantly impact employers and employees alike. With the Employment (Allocation of Tips) Act 2023 leading the charge, here’s a breakdown of the key updates coming into force this October and beyond.
Remember, if you have any concerns, the Spotlight team are always available to discuss how these changes could impact your business individually.
SMEs: Get Ready for Fair Tip Distribution Rules Starting October 2024
Starting October 1, 2024, the Employment (Allocation of Tips) Act 2023 will usher in a new era of transparency and fairness in how tips, gratuities, and service charges are handled across the hospitality and service industries. This grey area in employer gratuity distribution has left many workers feeling short-changed.
This Act mandates that all tips paid to employers, or over which they have control or significant influence, must be allocated to workers without deductions, except in very limited circumstances. Simply put, workers should receive the full benefit of their tips, reflecting their hard work and dedication.
But the Act doesn’t stop there. It also introduces a statutory Code of Practice, published on July 29, 2024, that provides businesses and staff with clear guidelines on distributing these tips fairly among workers, preventing any single employee or group from being unfairly favoured or disadvantaged.
Employers must now provide workers with a written policy detailing how tips are handled within their business. This policy must be readily available and apply to any business where tips are paid on more than an occasional basis. This move will give employees the information they need to challenge how their tips are distributed.
The Act also introduces a new right for workers to request more information about their employer’s tipping record. If workers believe they are not receiving their fair share, they can seek clarity and potentially bring a credible claim to an employment tribunal.
Contact us now to understand the potential impact on your business and ensure you are best prepared for the future.
New Law Alert: SMEs Must Act to Prevent Workplace Harassment
Following closely on the heels of the Employment (Allocation of Tips) Act, the Worker Protection (Amendment of Equality Act 2010) will come into effect on October 26, 2024. This Act strengthens the existing legal framework around sexual harassment in the workplace by placing a statutory duty on employers to take reasonable steps to prevent such behaviour.
While employers are already liable for failing to prevent harassment, this new legislation introduces a standalone duty specifically focused on sexual harassment. If an employer neglects this duty, the Equality and Human Rights Commission (EHRC) can take enforcement action, and an employment tribunal can increase compensation awards by up to 25%.
This is a significant shift, emphasising the proactive steps employers must take to create a safe and respectful workplace environment. The EHRC will update its technical guidance on sexual harassment to reflect this new duty, offering detailed advice on the measures employers should implement to comply with the law.
Although the final version of the Act no longer includes a provision, that would have made employers liable for third-party harassment (such as from customers or clients), it still marks a crucial step forward in worker protection. Employers must now be more vigilant than ever in ensuring that their workplace is free from sexual harassment, or they risk facing severe penalties.
If you need more advice on compliance and mitigating risk in your workplace, please get in touch.
Rebooting the Gig Workforce: New Act Secures Stable Hours for Unpredictable Jobs
In a world where gig work and zero-hour contracts are increasingly common, the Workers (Predictable Terms and Conditions) Act 2023 is set to reboot this practice and provide greater security for workers. Coming into force in September 2024, this Act gives workers with unpredictable hours the right to request more stable working patterns.
This Act significantly impacts SME workplaces whether someone is a full-time employee, an agency worker, or on a short-term contract. Workers will have the right to make up to two requests per year for more predictable hours or working times, provided they have worked for their employer for a specified period—expected to be 26 weeks.
Employers must respond to these requests within one month, and if a request is granted, they must offer the new terms within two weeks. However, employers can refuse requests on several grounds, such as the additional cost or insufficient work during the requested times.
As with the tipping legislation, ACAS will issue a Code of Practice to guide both employers and workers in making and handling these requests.
Contact us now to understand the potential impact on your business and ensure everyone is best prepared and protected for the future.
Putting an End to “Fire and Rehire”: How the New 2024 Employment Rules Impact You
In recent years, one of the more contentious employment practices has been “fire and rehire,” where employers dismiss workers only to rehire them on less favourable terms. The new Code of Practice on Dismissal and Re-engagement came into force on 18 July 2024 and aims to curb this practice.
Issued under the Trade Union and Labour Relations (Consolidation) Act 1992, the Code sets out the legal standards employers must meet when seeking to change employees’ terms and conditions. Employers must consult with staff and explore alternative options before considering dismissal. Dismissal and re-engagement should be used only as a last resort after fair and transparent consultations.
Failure to follow the Code can have serious consequences for employers. Employment tribunals can uplift compensation by up to 25% if an employer is found to have unreasonably failed to adhere to the Code.
This legislation signals that the government is committed to protecting workers’ rights and ensuring that changes to terms and conditions are handled with care, fairness and transparency. Reviewing your employment hiring processes now could save you money and headaches.
Get in touch if you need help.
Conclusion: A New Era for Employment Rights
These new laws will significantly change the employment landscape in the UK. For employees, they offer enhanced protections and new rights that reflect the realities of the modern workplace. For SME employers, these updates mean a greater emphasis on fairness, transparency, and the proactive protection of workers’ rights.
As business owners prepare for these changes, both employers and employees must familiarise themselves with the new legislation, understand their rights and responsibilities, and work together to create a fair and equitable work environment.
At Spotlight HR, we are strategic partners to many local businesses across East Sussex.
From individual outsourced projects to assisting your in-house function, our experienced team specialises in HR services for SMEs