Brexit, Trump and celebrity deaths stole the headlines in 2016, and while perhaps not as newsworthy, it was also a busy year in the employment law arena. So what does 2017 hold for employment law?
MacRoberts LLP employment law partner, Katy Wedderburn, outlines some of the key areas that employers and employees alike should be looking out for this year.
BREXIT
No look ahead to 2017 would be complete without mentioning Brexit.
Much of UK employment law derives from, or is influenced by, EU law and decisions from the EU courts. While it is unlikely that basic rights such as unfair dismissal and family friendly will change, it is also unlikely that employment law will remain entirely unaltered post-Brexit, see our earlier update on Brexit, Employment Law and Business Immigration by clicking here.
APPRENTICESHIP LEVY
April 2017 will see the introduction of the apprenticeship levy whereby all UK employers with an annual pay bill in excess of £3m will pay an apprenticeship levy of 0.5% of their annual pay bill, irrespective of whether they employ apprentices or not. See our earlier updates for more information by clicking here.
NATIONAL MINIMUM WAGE
April 2017 will also see the National Minimum and Living Wage increase, and the applicable rates from April 2017 will be as follows:
| Age 25+ Age 21-24 Age 18-20 Age 16-17 Apprentices |
£7.50 £7.05 £5.60 £4.05 £3.50 |
PAY FOR TIME OFF WORK
Statutory sick pay also increases in April, to £89.35, as does statutory maternity pay (and pay for adoption, paternity or shared parental pay) to £140.98.
GENDER PAY GAP REPORTING
The gender pay gap reporting regulations come into force on 6 April 2017 and apply to employers with over 250 employees (and 'employees' is widely defined).
MacRoberts will be running training sessions in February in our Glasgow and Edinburgh offices to help businesses prepare for their reporting obligations, click here to sign up.
EMPLOYMENT STATUS AND THE 'GIG ECONOMY'
One of the first notable decisions of 2017 came when the Employment Tribunal found that a City Sprint bicycle courier was a worker and not self-employed, and was therefore entitled to holiday pay and also other wider protections not afforded to the self-employed. With the Uber taxi decision (despite the contract between Uber and its driver describing them as "self-employed", the drivers were in fact workers) being appealed this year; and the Pimlico Plumbers appeal (on a similar point) being heard in the English Court of Appeal next week, employment status and the worker/self-employed distinction is likely the be on the agenda throughout the year. See our earlier update on the Uber case by clicking here.
We are also expecting to hear from the Government's inquiry into the "future world of work and rights of workers" this year, which had a particular focus on the self-employed and those working in the 'gig economy'.
Employers should review labour contracts to ensure that the appropriate arrangements are in place.
MODERN SLAVERY STATEMENTS
The Modern Slavery Act 2015 applies to 'commercial organisations' in the supply of goods and services with a worldwide turnover of at least £36 million and places an obligation on these businesses to publish a 'Modern Slavery Statement' (see our earlier update by clicking here).
Organisations must publish their statements within six months of their financial year end date and so 2017 may be the year for certain organisations' first statements.
HOLIDAY PAY
It is unlikely that we will see 2017 through without any holiday pay news. British Gas, for example, has appealed the recent Court of Appeal decision to the Supreme Court. – We will keep a close eye on how affected cases progress.
WORKING TIME AND REST BREAKS
At the end of last year the EAT considered the Working Time Regulations 1998 and held, in Grange v Abellio London Ltd, that an employer has a duty to afford a worker the right to a rest break, regardless of whether or not it has been explicitly requested. 2017 may see further cases on the back of this and employers should now review their working arrangements and policies to ensure compliance.
RESTRICTIVE COVENANTS
The Government's consultation on non-compete clauses closed in July 2016, and the outcome of this is expected to be published this year.
INDUSTRIAL ACTION
The implementation of the Trade Union Act 2016 is expected this year which will bring about various changes to the industrial action rules, including increased balloting thresholds.
SHARED PARENTAL LEAVE FOR GRANDPARENTS
Plans to extend shared parental leave to grandparents are expected to be announced in 2017, but with so much else going on and the low uptake of shared parental leave for parents, this may not be particularly high on the legislative agenda.
TRIBUNAL FEES
And finally, what does it cost for employees to enforce these employment rights?
In England and Wales, the Supreme Court will hear Unison's challenge of the fees regime south of the border. Meanwhile in Scotland the Government has already committed to removing tribunal fees, will 2017 be the year that this happens?
With the above being just a few areas to look out for 2017, it looks set to be another busy year in the employment law calendar.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
