With the focus firmly on changes to contracts of employments this month, those of you contemplating employment contract alterations, then this one is tailor-made for you!
P&O Cruises’ questionable approach to dismissing employees has sparked upcoming changes and how we deal with contractual changes.
I’m sure we all remember the P&O cruises incident last year regarding the firing of their staff, some would say it was a brave move, (others may choose another word for it !) Whatever we call if it it brought into question and focus things around how we treat our employees.
Following the incident, the government conducted consultations around a new statutory code of practice on what’s known in the industry as ‘fire and rehire’ – in a nutshell it means dismissing an employee and then taking them back on a new contract with less favourable terms. Although not not something we would advise doing, we do appreciate that there are times when contracts need to be changed but its “how” we do and then communicating the reasons for any changes effectively and in a timely manner.
As we wait for the government to approve this new code (expected late summer). It will affect some decisions in your business when it comes to managing and changing contracts of employment so read on…..
Key Points of the Code:
- The Code’s objective is to clearly define the expected conduct of employers when altering employees’ terms and conditions, with the aim of ensuring proper consultation and fair treatment of employees.
We talk a lot at Rowan Consulting about engaging in meaningful conversations, something that this will compliment this new code of practice.
So, for any contract changes that you might be considering, keep in mind the following
- Clarify the reasons for any change
- Consider alternatives to making the changes
- Communicate things in a timely manner
On the subject of contracts, we’ve also had the heads up on some new legislation around restrictive covenants – ( aka; the clause in employment contracts that stops your employees going to work for the competition within a certain timeframe). The government are looking to limit this to a maximum of three months. yes, even for senior and sales roles !
So what now? Have a quick check your employment/associate contracts to make sure you are ready for when these changes come in (we’ll let you know when there is a date set for this). Any that are over 3 months will likely need changing and an amendment to contract letter to be sent. Get in touch if you have any questions on this, or if we can help with the process.
Heads up if you have people on zero hours contracts !
As of September 2024, those of you who use irregular hours contracts will need to be aware of the ins and outs of these changes.
When the act comes in, workers will have the right to request a predictable working pattern. If you have employees with irregular hours then you need to be reviewing how this new act could impact your business.
Business and Trade Minister, Kevin Hollinrake, said: “Although zero hours contracts can often suit workers who want to work flexibly and employers whose needs vary, it is unfair for anyone to have to put their lives on hold to make themselves available for shifts that may never actually come — this Act helps to end the guessing game.”
Its not about stopping the use of zero hours contracts, this is more about being able to offer a more predictable work pattern for unscheduled hours. We expect this to have more of an impact for those who are in the hospitality, service or construction industries, the question will be; are you able to provide a predictable work schedule with more than two weeks notice, or does this just not work for your business? We’re here to help so please get in touch.
A welcome update that should make things easier for SMEs !
From July 2024, regulations are being revamped, to make things more flexible and easier for micro businesses when it comes to TUPE transfers, whereas currently you are restricted to appointing and consulting with reps ahead of the process, often resulting in a long and lengthy process, these new regulations will mean:
- Employers with fewer than 50 employees and/or
- Employers of any size, involved in the transfer of fewer than 10 employees.
Will now have more flexibility to discuss directly with affected employees, reducing timescales and increasing meaningful conversations, the reduction in red tape, we’re sure will be welcomed by small businesses considering undertaking acquisitions at present. in reality, many employers already inform and consult directly with affected employees where a transfer involves a handful of employees as it often makes more commercial sense to do so. The new law will therefore be welcomed by employers and goes further in extending the exemption to employers with less than 50 employees
A quick reminder though, ensure you are familiar with your obligations to inform and consult under TUPE as a failure in this regard potentially exposes transferors and transferees to up to 13 weeks gross pay per affected employee remains unchanged.
Other news in brief.
Allocation of tips
For those working in hospitality, from October 1st there is new legislation around the allocation of tips. There will be a legal obligation on employers to allocate all tips to workers going forward. In reality, most employers do this already but this will ensure tips are allocated and remuneration for employees in these areas are standardised. Get in touch with any questions on this.
What if…….we end up with a change of government?!
The current uncertainty and potential change of government next year brings us out in slightly cold sweats, not because we are hugely political but because some of the legislation that has come into force this year could no sooner be in than out.
Labour are talking about removing fire & rehire practices, and getting rid of qualifying periods for statutory regulations, We’ll deal with this as and when it happens with the ins and outs at the moment but we will keep a very close eye on things and update you when there is something concrete to report.
As always, we’re here to help guide you through the changes and challenges so please get in touch if there is something you would like to discuss. We’re always happy to hear from you and welcome the opportunity for a cuppa and a chat!
For more advice, check out resources page www.rowan.consulting/resources
