Statutory Code of Practice on dismissal and re-engagement in force
The new statutory code on dismissal and re-engagement (also known as fire and re-hire) was brought into force on 18 July 2024, and an updated version subsequently issued on 30 July - Code of practice on dismissal and re-engagement. The Code's stated aim is to provide guidance to employers, employees and trade unions to help avoid, minimise and resolve conflict around the use of dismissal and re-engagement as a method of changing employees terms and conditions, making clear the practice should only be used as a last resort. This potentially could include a situation where an employer has been consulting on changes but finds that one or more employee refuse to accept them. There is no standalone claim for employees arising from a breach of the Code, but employment tribunals must take the Code into account when considering relevant claims, including unfair dismissal. Compensation may be uplifted or reduced by up to 25% where a party has unreasonably failed to follow the Code. Employers should note that the new Labour Government intend to bring forward new legislation to "put an end" to fire and rehire except where there is genuinely no alternative; and to strengthen this "inadequate" Code. As such, further developments in this area are to be expected.
Allocation of tips legislation in force on 1 October 2024
The Employment (Allocation of Tips) Act 2023 will come into force on 1 October. The accompanying Code of Practice on Fair and Transparent Distribution of Tips comes into force on the same day. The aim of the Tipping Act is to ensure fair and transparent allocation of tips left by customers in recognition of good service by workers. The Code provides overarching principles to employers on what fairness is for the purposes of the Tipping Act and how these principles should be applied at their specific place of business.
Socioeconomic pay gap reports
Although the new Labour Government have pledged to introduce ethnicity and disability pay gap reporting, adding to the current gender pay gap reporting, as yet there are no plans to introduce socioeconomic pay gap reports. However, the Co-op recently became the first UK retailer to publish such a report. As the name suggests, it looks at the difference in pay between staff from different socioeconomic backgrounds. The results, collated from data from nearly half of Co-op's 57,000 employees, showed that those from a lower socioeconomic background were less likely to progress to senior positions; and reported a 5.2% pay gap between employees from lower and higher socioeconomic backgrounds.
Guidance on discriminatory adverts updated
The Equality and Human Rights Commission have updated their Guidance on discriminatory adverts. The changes seek to clarify "occupational requirements" under the Equality Act 2010. In particular, the guidance notes that occupational requirements relating to the protected characteristic of "sex" mean legal sex as noted on either someone's birth certificate or Gender Recognition Certificate (GRC). This means that a "sex-based" occupational requirement to be a woman cannot include trans women who have not obtained a GRC but would include trans women that have.
Prospect and CIPD publish paper on quality of work and working relationships
The union Prospect and the Chartered Institute for Personnel and Development have published a joint paper - improving work and workplaces is an essential part of growing the economy post-election - highlighting the importance of quality of both work relationships and workplaces in expanding opportunities and growing the economy. The paper is the two organisations contribution to how that might be achieved, including setting out practical steps that can be taken at national, sectoral and regional level to do that.
