Another big year ahead for Employment Law

2014 saw ground breaking changes in terms of Employment Law; Equal Pay Audits, ACAS Early Conciliation and Shared Parental Leave were all introduced, and two of the biggest tribunal cases took place involving commission and calculating holiday pay.  Emma Wyatt, Assistant Solicitor in our Employment Team, here explains how 2015 is set to be yet another year of developments as these implementations continue to take effect over the next 12 months, and how the result of the upcoming General Election could take us down a very different path.

Tribunal fees 

Tribunal fees were introduced in July 2013, a regime that was challenged by UNISON on the grounds that the fees would deter potential claimants from rightfully making a claim as the fees would be an unrealistic financial obstacle.  The High Court rejected this challenge due to the lack of evidence to demonstrate that this would be the reason for the reduction in tribunal claims, rather than the potential claimant merely not wanting to take a financial gamble to pursue a tribunal claim.  It seemed that tribunal fees were set to stay at this point, however in December 2014 UNISON were granted leave to appeal.

The future of tribunal fees will now not only depend on the forthcoming appeal by UNISON to the Court of the Appeal but also on the outcome of the General Election.  If the Court of Appeal does not overturn the High Court’s decision and the Conservatives are re-elected then it is likely the fee regime will remain mainly as it is.  However, if Labour are elected, the position may change as there were suggestions at the Labour party conference that they would consider reforming the tribunal system if they were elected.  The Liberal Democrats position is unclear on the issue of tribunal fees but they have been critical of the current arrangement.

Zero hour contracts

The Government consulted on zero hour contracts in 2013 and this consultation identified two particular concerns; the first being exclusivity clauses in which an employer would tie an employee into solely working for them with no guarantee of work.  The second concern was a lack of transparency in that some individuals and businesses may not be clear on the terms of a zero hour contract and what the implications of entering into one are.  The consultation recommended a code of practice on the use of the contracts rather than a ban on them completely.

In June 2014 the Government published its full response to this consultation, going against the recommendation by outlining their plans to prohibit exclusivity clauses in zero hour contracts.  They have recently consulted on the potential loopholes employers may use to avoid this proposed ban and this will be used to determine the scope of anti-avoidance measures.

If the relevant Bill implementing these changes is not passed as law before the election in May, it is likely that the Bill will be passed in the next Parliament if the Conservatives are elected given the importance they have given the issue.

Labour have said that they will go further in their action in relation to zero hours contracts if they are elected. The actions they propose include factors such as zero hour workers not being required to be available outside contracted hours, and a right to compensation if shifts are cancelled on short notice.

Family rights

Shared Parental Leave

Shared parental leave will be available for parents whose children have an expected week of childbirth on or after 5 April 2015, or who are placed for adoption on or after that date.  Those employees who meet the eligibility requirements for SPL will be entitled to a maximum of 52 weeks’ leave and 39 weeks’ statutory pay following the birth or adoption of a child and this can be shared between the parents.

This is a major shake-up to the maternity and paternity regime with financial and operational implications for employers.  We would recommend that you seek advice on updating your staff handbooks and contracts to reflect these changes, and to avoid potential tribunal claims.  You can find more information about Shared Parental Leave here.

Tax free childcare scheme

The Government plan to introduce a new tax free childcare scheme in the Autumn which will entitle working families to claim 20% of qualifying childcare costs for children under 5 and children with disabilities under 17. Claims will be capped at £2,000 per child per year, however if one family member is an additional rate taxpayer then the family will not be able to participate in the scheme.

This will replace the current employer-supported childcare schemes and will not involve any salary sacrifice so the NICs advantages currently enjoyed by employers and employees will no longer be available.

Parental Leave

From the 5 April 2015 all parents will be able to take unpaid parental leave up until their child is aged eighteen.  Currently parents are only entitled to take parental leave until the child’s fifth birthday or their eighteenth birthday if they are disabled.

For more information on any of these developments in Employment Law, or if you have any other queries, please contact Emma or one of the Employment team on 02380 717717.

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.