Employment Law General Update – July 2024

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The King's Speech 2024 outlines government priorities including an Employment Rights Bill and a new Pensions Schemes Bill. EHRC updated guidance on discriminatory adverts, MAC reviewed the Seasonal Worker visa, and Co-op reported a 5.2% socioeconomic pay gap.
United Kingdom Employment and HR

This month we bring you a brief summary of the employment, pensions and immigration highlights of the King's Speech, a look at new guidance from the EHRC on job advertising and how not to fall foul of the legislation, with a particular reference to the protected characteristic of 'sex'. We also have a looking at the reasons and recommendations for a Seasonal Worker Scheme and consider the results of the Co-Op's first pay gap report considering the socioeconomic background of workers.

The King's Speech 2024: Employment, Pensions and Immigration

His Majesty, King Charles III, has set out the government's priorities and proposed policies for the next parliamentary session at the State Opening of Parliament, which took place on 17 July 2024.

This includes 40 legislative proposals to be addressed in the 2024–2025 parliamentary session. In his speech, King Charles explained that the government's 'legislative programme will be mission led and based upon the principles of security, fairness and opportunity for all'.

This King's Speech 2024 focuses on improving the living standards of working people through economic growth and taking the 'brakes off Britain'. A major employment announcement came in the form of the Employment Rights Bill, as the government commits to deliver its 'Plan to Make Work Pay: Delivering a New Deal for Working People' and to legislate to ban zero-hour contracts, end fire and rehire practices, and introduce certain employment rights from day one. The government will also work on delivering a new Draft Equality (Race and Disability) Bill, which will enshrine the full right to equal pay for ethnic minorities and disabled people in law. The Skills England Bill will be introduced to seek to understand national and local skills needs via establishment of a new body, 'Skills England'. The Skills England Bill will also establish a new partnership with employers and reform the apprenticeship levy.

Pensions

The speech contained the announcement of a new Pensions Schemes Bill, stating, 'Bills will be brought forward... to strengthen pensions investment'. The Bill aims to increase the amount available for pension savers and states it could help an average earner, who saves over their lifetime in a defined contribution scheme, to have over £11,000 more in their pension pots with which to secure their retirement income.

Immigration

The speech also covered the introduction of the new Border Security, Asylum and Immigration Bill which seeks to 'modernise' the asylum and immigration system and strengthen and secure the border.

Discrimination: EHRC updates its guidance on discriminatory adverts

The Equality and Human Rights Commission (EHRC) has updated its guidance on discriminatory adverts. The main updates are to the section 'When is an advert which restricts a job or service to particular groups unlawful'. The guidance now includes examples in relation to an 'occupational requirement' under Schedule 9 of the Equality Act 2010 and where an occupational requirement applies, the employer must make sure that it is objectively justifiable.

Guidance in relation to the protected characteristic of 'sex' now states that 'sex' means a person's legal sex as recorded on their birth certificate or their Gender Recognition Certificate (GRC). This means that a sex-based occupational requirement that an applicant is a woman, as is common within specialist support services for women, such as rape counselling, will include women who are recorded female at birth and also transgender women who have obtained a GRC. The guidance notes, however, that Schedule 9 of Equality Act 2010 also permits an occupational requirement to exclude transgender persons where it is objectively justified, and this can include people who have obtained a GRC. It states that a 'sex-based' occupational requirement to be a woman under Schedule 9 cannot include transgender women who have not obtained a GRC, as they do not have legal status as women under Equality Act 2010.

Immigration: MAC publishes review of the Seasonal Worker visa

The Migration Advisory Committee (MAC) has published its review of the Seasonal Worker visa, which sets out the reasons for having a Seasonal Worker Scheme, how the scheme works, the economic and social impact of the scheme, the impact of the scheme on employers, the welfare issues that arise for the workers, and recommendations based on five key themes. The report considers the call for evidence that ran from June–October 2023, stakeholder engagement, and both internal and external research.

Pay Disparity: Co-op publishes socioeconomic pay gap report

The Co-op has become the first retailer to publish a pay gap report based specifically on socioeconomic background. The report collected data submitted voluntarily from 48% of its 57,000 employees, finding a mean pay gap of 5.2% between those of a higher and of a lower socioeconomic background. Employees from a lower socioeconomic background are also less likely to progress into more senior positions, according to the data.

As a result of the findings, Co-op has 'doubled down' on its Social Mobility Plan, including campaigning for the government to make socioeconomic background a protected characteristic under the Equality Act 2010. Co-op has also set a target of collecting 80% of socioeconomic employee data for the next 12 months. In addition to the main report, Co-op also published a one-page summary.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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