11 May 2023
Law at Work - May 2023 – 1 of 8 Insights
On 10 May 2023, the government announced its policy to reform employment law as part of its strategy to grow the economy. This is largely driven by the 'Brexit freedoms' agenda, as enshrined in the Retained EU Law (Revocation and Reform) Bill, but independent of that, the government has stated all domestic laws which create an unnecessary burden on business will be reviewed and reformed where necessary. In general, there will be a move away from reliance on regulation in favour of guidance. Guidance is seen as more nimble and capable of being adapted to changing business needs.
The government has stated that it will:
The government has indicated that it intends to change the rules on holiday pay this year. It has already launched a consultation on holiday pay and how it might be simplified. We can expect the core entitlement (5.6 weeks) to remain the same but rules on rolled-up holiday pay and how holiday pay is calculated to be reformed.
Employers should prepare to review holiday pay policies and systems used to calculate holiday pay. Depending on what the changes are, care will be needed to make sure there is no clash between the effect of the new statutory rules and any contractual rights in respect of holiday.
In a surprising move, the government has indicated that when Parliamentary time allows, it will:
Employers should now be reviewing their entire approach to preventing employees from competing after employment. This will involve reviewing contracts where reliance is placed on lengthy non-compete clauses. More than ever, a holistic approach will be required, in terms of how various provisions in the employment contract work together to protect the business. Employers should move away from a blunt reliance on a lengthy non-compete covenant. In particular, employers should:
The government intends to reduce the consultation burden on businesses where there is a TUPE transfer involving an employer with fewer than 50 employees and fewer than 10 employees are affected by the transfer. Where this is the case, an employer will not have to elect employee representatives but may consult with employees directly.
17 May 2023
by Helen Farr
17 May 2023
by Ruth Moffett
28 April 2023
3 April 2023