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"To know what you know and what you do not know is true knowledge."
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"To know what you know and what you do not know is true knowledge."
- Confucius
Resources
"To know what you know and what you do not know is true knowledge."
- Confucius
Resources
"To know what you know and what you do not know is true knowledge."
- Confucius
Resources
"To know what you know and what you do not know is true knowledge."
- Confucius
Latest HR News & Tips
Diversity and Inclusion: Reflections on 2024 and Insights for 2025
As we conclude 2024 and look ahead to 2025, it's essential to reflect on the progress made in diversity and inclusion (D&I) within the UK workplace and understand the legal and practical implications for the future.
This year has seen significant developments in D&I across various sectors:
Companies like Hilton, Centrica, and Premier Inn have implemented inclusive hiring practices, recognising the unique talents of individuals with learning disabilities. Such initiatives not only promote equality but also enhance team morale and innovation.
However, challenges persist. A report from Deloitte revealed that 40% of disabled employees still face workplace discrimination or bullying. This highlights the ongoing need for proactive measures, such as inclusive leadership training and the implementation of clear anti-discrimination policies.
Despite efforts to increase ethnic diversity in boardrooms, progress has stalled, with only 4% of newly appointed directors coming from ethnic minority backgrounds, down from 15% the previous year. Industry watchdogs, such as the Parker Review Committee, stressed the importance of sustained efforts to ensure leadership reflects the diversity of the wider population.
Organisations that succeeded in improving ethnic representation often focused on leadership pipelines, mentorship programs, and transparent reporting on diversity metrics. These strategies benefit representation and enhance decision-making by incorporating a broader range of perspectives.
Social mobility emerged as a critical focus area in 2024, with advocates pushing for greater transparency in socio-economic diversity across industries. Financial services, in particular, came under scrutiny for perpetuating class-based inequalities. Research from the Social Mobility Commission highlighted that individuals from privileged socio-economic backgrounds held 60% of leadership roles in top firms.
To address this, several organisations began reporting on employees’ socio-economic backgrounds and implementing initiatives to recruit talent from underrepresented communities. By addressing the "class ceiling," businesses can unlock broader talent pools and foster greater innovation.
Significant legislative changes in 2024 underscored the UK government’s commitment to fostering inclusivity in the workplace. Key updates included:
1. Inclusive Britain Second Update Report - May 2024
Published in May 2024, this report outlined several new commitments to reduce disparities across racial and socio-economic groups. Key actions included:
- Improving Teacher Diversity: Programs were introduced to encourage more individuals from ethnic minority backgrounds to enter the teaching profession, ensuring students see themselves reflected in leadership roles.
- Inclusive Curriculum Development: Schools began adopting frameworks to teach students about the value of diversity, laying the groundwork for a more inclusive future workforce.
2. Worker Protection (Amendment of Equality Act 2010) Act 2023
The Worker Protection (Amendment of Equality Act 2010) Act, effective October 2024, introduced new responsibilities for employers to prevent workplace harassment proactively. Notably, employers are now required to:
- Demonstrate Reasonable Steps: Employers must show evidence of training and clear reporting mechanisms to prevent harassment.
- Third-Party Harassment: Liability was extended to include incidents involving clients or customers, encouraging companies to foster safer environments for all employees.
3. Gender Pay Gap Reporting: Guidance for Employers
Building on previous legislation, 2024 saw a renewed push for transparency in pay reporting. Employers with over 250 employees were required to publish pay gaps not only by gender but also by ethnicity and disability. This expanded reporting aims to address disparities more comprehensively and ensure accountability.
To foster an inclusive workplace:
- Conduct Pay Audits: Regular audits can identify and address pay disparities, ensuring compliance with evolving pay transparency laws.
- Implement Inclusive Hiring Practices: Revamping recruitment processes to eliminate biases can attract a diverse talent pool.
- Promote Inclusive Cultures: Encouraging mentorship and creating welcoming environments ensure all employees feel valued and included.
As we move into 2025, organisations should:
- Stay Informed: Keep abreast of legal changes and ensure compliance with new D&I regulations.
- Set Clear Goals: Establish measurable diversity objectives and hold leadership accountable.
- Foster Continuous Improvement: Regularly assess and refine D&I strategies to adapt to changing societal expectations and legal requirements.
By embracing these practices, businesses can create equitable workplaces that drive innovation and success.
At Arthur Employment Law, we are dedicated to assisting organisations in navigating the complexities of employment law, including D&I initiatives. Our services include:
- Policy Development: Crafting comprehensive D&I policies tailored to your organisation's needs.
- Training Programs: Providing training sessions to educate employees and management on D&I best practices.
- Compliance Audits: Conducting thorough audits to ensure adherence to current employment laws and regulations.
Partner with AEL to foster a more inclusive and legally compliant workplace. Contact us today to learn how we can support your D&I journey.
Labour’s Proposed Employment Rights Bill: What Employers Need to Know
The July 2024 King’s Speech introduced Labour’s ambitious Employment Rights Bill, a series of sweeping reforms aiming to reshape the UK's employment rights landscape. This proposed legislation could have significant implications for businesses across all sectors, from enhanced worker protections to new reporting requirements.
Here, we break down the key elements of the proposed Employment Rights Bill, analyze its potential impact, and offer guidance on how employers can prepare for these anticipated changes.
- What It Means: Under the current legislation, employees must have two years of continuous service to qualify for unfair dismissal protection. Labour’s proposed bill aims to extend this right from the first day of employment, providing employees with immediate protection.
- Implications for Employers: This change may limit employers' flexibility in managing probationary periods and may require more rigorous documentation of performance and conduct from the start. It emphasizes the need for fair and transparent dismissal practices.
- Action Steps: Employers should review and revise their onboarding and performance management processes to ensure they can document issues effectively from day one. Training HR and management to conduct fair performance assessments will be crucial.
- What It Means: The proposed bill seeks to prohibit exploitative zero-hours contracts to protect workers from insecure work arrangements that offer no guaranteed hours.
- Implications for Employers: This ban may particularly impact sectors like hospitality, retail, and care, where zero-hours contracts are commonly used. Employers may need to shift to fixed-hour or flexible working contracts that still meet operational demands.
- Action Steps: Employers should begin assessing how dependent their workforce is on zero-hours contracts and explore alternative arrangements, such as flexible part-time roles or guaranteed minimum hours. If the bill passes, planning to transition to new contract types will help ensure compliance.
- What It Means: Labour proposes creating a new state enforcement body, the Fair Work Agency, to oversee and enforce employment rights, particularly around fair pay and treatment.
- Implications for Employers: The establishment of this agency could mean more rigorous and frequent inspections, as well as stricter enforcement of compliance with employment standards.
- Action Steps: Ensuring compliance with existing laws will become even more critical. Regular audits of pay, working hours, and employment conditions could help businesses prepare for potential inspections. Employers should also make it a priority to understand and meet all standards to avoid penalties.
- What It Means: Another critical component of Labour’s agenda is the Draft Equality (Race and Disability) Bill, which aims to mandate ethnicity and disability pay gap reporting for larger employers, similar to existing gender pay gap reporting.
- Implications for Employers: Companies with over 250 employees must measure and report their pay disparities across race and disability, pushing for more transparency and accountability.
- Action Steps: Employers should start reviewing their pay structures and practices to identify and address any existing disparities. Proactively implementing diversity and inclusion initiatives can support these changes and enhance the company’s reputation. It’s an excellent time to consult with HR and legal experts to understand the requirements of such reporting.
At Arthur Employment Law, we believe that the proposed Employment Rights Bill offers both challenges and opportunities for UK employers. While these reforms may require significant adjustments, they encourage fairer, more equitable workplaces. Proactive employers who embrace these changes can enhance their reputation, improve employee satisfaction, and reduce turnover.
In particular, establishing fair dismissal practices, developing alternative contracts to replace zero-hours, and addressing pay equity are not just about compliance—they are investments in long-term stability and trust. With the proper planning and support, employers can navigate these changes confidently and strengthen their organizations.
Practical Steps to Prepare for Labour’s Proposed Changes
- Review Current HR Policies and Contracts: Assess which policies may need adjustments if the bill passes. One key area to consider is transitioning from zero-hours contracts to more stable arrangements.
- Enhance Documentation Practices: Start documenting employee performance and conduct more rigorously from day one to support fair dismissal practices and avoid disputes.
- Conduct Internal Pay Audits: Proactively review pay data across gender, race, and disability to identify potential disparities. Implement strategies to address these gaps before mandatory reporting takes effect.
- Stay Informed: These are proposed changes, so stay updated on the bill's progress. Regular check-ins with employment law resources, like Arthur Employment Law’s blog, can help you prepare for any updates.
Looking Ahead
While the bill is still in the proposal stage, the potential changes are significant enough that employers should consider adjustments now. At Arthur Employment Law, we’re here to help you understand the complexities of the proposed Employment Rights Bill and offer guidance tailored to your business needs.
For further insights or assistance, feel free to contact us. Preparing for these changes proactively will position your business well for the future.
Employment Update: Summer 2024 – Key Legislative Changes for Employers
As 2024 progresses, legislative updates are reshaping the employment landscape. From enhanced protections in insolvency situations to updates in pension auto-enrolment and gender pay gap reporting, employers need to stay informed and compliant.
This post highlights the key legislative changes introduced over the summer of 2024 that affect employers across the UK, offering actionable advice on adapting to these new requirements.
One of the most notable updates is enhancing employee protection in insolvency cases. Under the revised regulations, employees now have greater security in the event of employer insolvency, ensuring quicker access to unpaid wages, redundancy pay, and other entitlements. These updates are particularly relevant to sectors with higher volatility, such as hospitality and retail, where insolvency risks are often heightened.
For employers, it’s crucial to understand these changes to minimize disruption and ensure that employees receive the financial support they are entitled to during such difficult circumstances. Employers should work closely with legal and financial advisors to review their business continuity plans and ensure compliance with the new rules. The Insolvency Service provides further guidance on these updates.
Summer 2024 also saw essential updates to employment permits and immigration policies, particularly regarding workers from the EU and beyond. With Brexit continuing to impact workforce availability, the UK government introduced new provisions to streamline visa applications for skilled workers, making it easier for employers to hire internationally. This includes updated criteria for sponsoring workers and changes to visa eligibility for specific industries experiencing labour shortages.
If your business hires international workers, now is the time to review your employment practices to ensure compliance with updated visa regulations. For more information on the changes and how they may affect your workforce, consult the UK Visas and Immigration (UKVI) website.
Pension auto-enrolment has been a critical topic in 2024, with the government introducing new measures to increase minimum contributions. Starting in July, all businesses must adhere to a higher threshold for employer and employee contributions to encourage long-term savings among the UK workforce. This change is part of a broader effort to improve employee retirement outcomes across all sectors.
For employers, this means reviewing your pension scheme contributions and ensuring that payroll systems are updated to reflect the new requirements. It’s also important to communicate these changes to your employees, ensuring they understand how their pension savings will be affected. The Pensions Regulator provides a detailed breakdown of these changes.
Gender pay gap reporting remains a focal point for employment law, and in Summer 2024, the UK government introduced stricter reporting requirements for large employers. These new rules require companies with over 250 employees to publish more detailed reports on gender pay gaps, including steps they are taking to reduce disparities. Additionally, the framework for reporting has been expanded to cover ethnicity and disability pay gaps for the first time under the Draft Equality (Race and Disability) Bill proposed earlier this year.
For businesses, gender pay gap reporting is not just a compliance issue but a critical reputational factor. Employers are encouraged to meet the reporting requirements and implement proactive strategies for reducing pay inequalities. For guidance on how to address and report on gender pay gaps, visit the Government Equalities Office.
Lastly, there have been notable changes to parental leave entitlements. The updated provisions extend eligibility for shared and unpaid parental leave, offering greater flexibility for working parents. These changes are designed to improve work-life balance for parents and carers, particularly in industries with high demands on employee time, such as healthcare and education.
Employers should update their HR policies to reflect these changes, ensuring employees know their new rights and options. Effective communication is vital, so consider hosting workshops or providing informational sessions to explain these updates in detail. The Advisory, Conciliation and Arbitration Service (ACAS) offers helpful resources on parental leave entitlements.
At Arthur Employment Law, we believe understanding and adapting to these legislative changes is essential for maintaining a healthy, compliant, and productive workplace. Employers proactively embracing these updates can ensure smoother operations while supporting their employees’ rights and well-being.
Whether you’re dealing with new insolvency protections, updating your auto-enrolment schemes, or addressing gender pay gaps, Arthur Employment Law is here to guide you through these transitions with practical advice tailored to your business needs.
For more information on any legislative changes mentioned, contact us directly, or explore the links provided throughout this post for detailed resources and further reading.
Navigating April 2024 UK Employment Law Changes
April 2024 introduced pivotal changes to UK employment law that are set to impact how businesses handle employee rights and workplace practices. From flexible working requests from day one to new leave entitlements, these updates emphasize the importance of understanding and adapting to evolving legal landscapes.
For employers, staying compliant isn't just about avoiding penalties—it’s about creating a supportive environment where employees can thrive. Below, we explore the critical updates and offer practical guidance on navigating these changes effectively.
One of the significant changes that took effect on April 6, 2024, is the expansion of flexible working rights. Employees are now entitled to request flexible working from the first day of their employment, with the option to make up to two requests per year. Employers must respond to these requests within a two-month period. This change reflects the growing recognition of flexible work as a standard expectation rather than a perk reserved for long-term employees.
To comply with these new regulations, it’s essential for businesses to review and update their existing flexible working policies. Consider training managers to handle requests efficiently and empathetically, ensuring that they understand both the legal framework and the potential benefits of accommodating flexible work arrangements. For more detailed guidance, refer to the UK Government’s official announcement.
Another significant update is the introduction of carers leave, which allows employees to take up to five days of unpaid leave per year to care for dependents in emergencies. This measure supports employees juggling work and caregiving responsibilities, enhancing their overall well-being and job satisfaction.
Employers should incorporate carers' leave into their leave policies and clearly communicate this option to employees. Implementing a system to track carers' leave can help manage staffing and workload distribution effectively. For comprehensive insights, check the Department for Business and Trade’s detailed guide.
The April 2024 updates also include strengthened protections for employees on maternity and adoption leave, extending redundancy protection to the end of their leave and up to six months after returning to work. This change is critical in safeguarding against discrimination and ensuring that redundancy decisions involving these employees are handled fairly and transparently.
To align with these updates, employers should revise their redundancy policies and train HR teams on the expanded protections. Ensuring compliance in this area meets legal standards and supports a culture of equality and fairness within the organization. Further details on these protections can be found in the Equality and Human Rights Commission’s latest guidelines.
At Arthur Employment Law, we view these legal changes as obligations and opportunities to foster a more inclusive and supportive work environment. Embracing flexible working from day one can significantly enhance employee satisfaction and retention, demonstrating a commitment to work-life balance that is increasingly valued in today’s job market. Similarly, the introduction of carers' leave acknowledges employees' diverse roles outside of work, while the extended redundancy protections contribute to a fairer workplace for all.
By staying proactive and informed, employers can meet compliance requirements and leverage these changes to improve their organizational culture and employee engagement. Arthur Employment Law is here to support your business through these transitions, offering tailored advice and resources to help you confidently navigate the evolving landscape of employment law.
For personalized guidance or more information, please contact us directly or explore our other resources to ensure your business stays ahead of the curve.
Cost of living crisis impacting employment
At the beginning of November, inflation in the UK sat at 9.3%. This is one of the highest levels of inflation reported since 1982. However, according to the Bank of England, inflation is set to remain ‘very elevated’ throughout 2023.
As the market evolves and the cost-of-living crisis intensifies, workers in the UK are becoming increasingly anxious as their work-to-life balance starts to tip with many people beginning to take up second jobs. This has begun to impact performance at work, with two-thirds of managers reporting issues like rising absenteeism and lack of engagement due to high levels of stress.
There are ways to ease the burden and counter the balance positively.
At Arthur Employment Law we believe it is essential for employers to remain understanding during this economical crisis. We can recommend ways to support employees by encouraging the use of benefit packages that can help employees through these difficult times. For example, some of our clients have implemented budgeting schemes for work. While it is understandable that not all companies can offer monetary assistance, focusing on flexibility, benefits, environment and training can be a huge step towards supporting employees. We believe that employers carving a supportive and positive workplace culture can help to improve the well-being of employees. To keep up with rising costs, many employees are looking for ways to have multiple streams of income. Employees should always be cautious of the working time regulations limit, and not exceed this. While the cost-of-living crisis impacts motivation and mental health, to allow employers to aid you, employees need to keep lines of communication open and remain cautious of their options during economic uncertainty.
AEL recommends supporting employees where possible to manage budgets by signposting to money management initiatives or wellbeing at work schemes. Employers should be creative about ways to support employees such as creating benefit packages that offer discounts or reward good work with vouchers, bonuses or prizes.
While it is understandable that not all companies can offer monetary assistance or increase salaries in line with inflation, focusing on flexibility to accommodate second jobs, and training staff to help build aspirations for promotion with a higher salary range can go some way to easing stress caused by increased costs of living.
We believe that employers carving a supportive and positive workplace culture can help improve the well-being of employees during difficult times. Hybrid ways of working can ease the costs of childcare arrangements as one example of support. Employers should observe working time regulations to ensure staff’s wellbeing, health and safety at work are not compromised. If you are interested in designing an innovative benefits package or conducting a salary benchmarking exercise, do contact us.
Hybrid work and its implications for employers in the UK
The COVID-19 pandemic has had an enormous impact on all areas of our lives. Because of how much of our time is occupied by work, the effects are evident in the job market, where employers had to take measures that at one point seemed radical, only to provide their teams with a safe work environment.
One of those changes was the introduction of hybrid work, which combines the elements of being present at the company’s office and homeworking. To some people, both employers and employees, this idea was far-fetched at first, and when the situation demanded it, no one knew what to expect. How did it play out?
The COVID-19 pandemic has caused two main changes in how people work. It includes primarily the location where work is done and the time in which employees are allowed to perform their duties.
In April 2020, when the first cases of the COVID-19 virus started to appear in the UK, around 47% of people transferred some of their work from the office to their homes, as per the Office for National Statistics, with 86% of them working from home directly due to the pandemic.
At the same time, around 34% of people worked fewer hours than before the pandemic, while around 30% reported working more hours than usual, according to the same report, which shows that the trends brought by the pandemic weren’t always beneficial to employees.
The pandemic experienced great fluctuations in intensity, and we witnessed many waves which caused restrictions to come and go. Even though the situation now seems to be stable, the way COVID-19 has impacted employees proved to many that hybrid work, even though once considered inferior to traditional ways of working, can be beneficial to the entire organisation, with over 41% of companies claiming it has improved organisational productivity, according to research conducted by the Chartered Institute of Personnel and Development.
The effects of homeworking have been even more positive among employees, with 59% of HR decision-makers reporting that hybrid working has had a positive impact on the well-being of their teams, according to new research by Microsoft and YouGov. The same study also claims that over half of employees would consider leaving their current position if the possibility of remote work was taken away from them, which suggests strong implications for employees who should now focus on providing their potential candidates with this opportunity in order to increase talent retention and reduce turnover rate.
At Arthur Employment Law, we believe that the application of hybrid working should be flexible to accommodate the varied needs of employees and allow them to choose between different working systems.
Attending the office and homeworking are characterised by different benefits they can bring to employees. The former enables visibility and allows members of the team to be seen by senior leaders, which can support promotion within the organisation. Flexible work, on the other hand, has the potential to ensure that people who might not be able to work full-time can still become a part of the team. This, in turn, ensures a diverse workforce and allows employees of different groups and demographics to contribute to the organisation.
One thing to remember for employers who decide to introduce homeworking in their organisations is the need to support those unable to attend the office and make them feel included, despite their lack of physical presence.
To facilitate homeworking, AEL supports the 7 strategies for success in hybrid work outlined by the Chartered Institute of Personnel and Development.
UK’s economy during the war in Ukraine
On 24 February 2022, Russian troops entered Ukraine, starting an invasion that many believed would only last for a couple of days. Unfortunately, it soon turned into a war that continues to affect the entire world, and its effects will be visible for many years to come, even after the situation settles down.
What effects has the war had on the UK’s economy? How has it influenced hiring and what should employers know to best approach what is ahead of them?
So far, the UK government has launched two visa programmes to allow Ukrainian nationals to stay in the UK for up to 3 years.
The Ukraine Family Scheme was the first visa scheme in the world to provide support to Ukrainians. It was announced on 1 March 2022 and came into effect 3 days later, enabling Ukrainian nationals to join their UK-based family members.
The Ukraine Sponsorship Scheme, also known as the Homes for Ukraine Scheme, was launched on 14 March 2022 and allows for the immigration of Ukrainians who have a UK-based sponsor to provide accommodation for each individual applying for the visa.
So far, both schemes have seen great popularity, and the total number of applications exceeded 130,000, as of 11 May 2022, with 102,300 visas issued. 37,500 visas were issued for the Ukraine Family Scheme and 64,800 visas for the Ukraine Sponsorship Scheme, respectively, as per the UK government data, which is updated daily.
Ukrainians holding visas issued through the Ukraine Family Scheme or Ukraine Sponsorship Scheme can stay and work in the UK for up to 3 years. Employers can freely hire those individuals on terms similar to those binding holders of other visas. It is worth noting that even though holders of those visas have the right to stay in the UK, they don’t hold refugee statuses.
Ukrainians who are considered refugees can be hired by the Refugee Employment Network or non-governmental organisations working with REN to allow access to fulfilling paid employment opportunities.
A detailed hiring guide prepared by the UK government can be found here. It outlines the rules and requirements for different employment statuses, such as workers, employees, and contractors, to allow employers to access the most recent information on how they can legally recruit Ukrainian immigrants and refugees.
The impact of the war in Ukraine isn’t limited to the neighbouring countries, and it has affected the entire world, especially Europe. It also encourages people to take a political stance and choose a side. While some have shunned Russia, the impact of the sanctions shows that the state of Russia’s economy has been deteriorating progressively, affecting not only people living in the country but also those in regions with some ties to Russia, which is a significant fraction of the world.
At Arthur Employment Law, we believe that people should remain mindful and not let the war impact how they treat each other, especially people of Russian origin, many of whom oppose the war as much as their Western counterparts. It includes not only our personal lives but also the recruitment process, where biases can get in the way and negatively affect the decision-making process.
It is essential since the cost of living has increased across the entire continent of Europe, not only in the UK. Employers need to ensure that their recruitment practices are even more efficient and that the management style within their organisations prevents discrimination and doesn’t lead to costly predicaments such as loss of productivity, financial means, or human capital. Inclusion with a strong emphasis on diversity is one of the ways employers can manage this situation and prepare for the future ahead of them.
UK's employment law after Brexit
The UK officially left the EU on 31 January 2020 and on 1 January 2021, the new rules took effect, limiting the freedom of movement between European Economic Area (EEA) and British citizens.
The changes have affected how businesses and individuals operate, which is especially visible in the areas where the two intersect, such as employment.
Doors are now closed for many immigrants unable to obtain a working visa in the country. EU, EAA, or Swiss citizens who were UK residents before 31 December 2020 could apply to the EU Settlement Scheme, but for others, an employer-sponsored visa is required.
The chief condition is the minimum salary threshold set as £25,600, or the average rate for the applicant’s job, whichever is higher. Other available programs introduced by the British government include the global talent scheme, which is open to highly-skilled scientists and researchers holding EU, EEA, and Swiss citizenship who can now come to the UK without a job offer.
In addition to that, international students who have completed a degree in the UK from summer 2021 are eligible to work, or look for work, in the UK at any skill level for up to 2 years, or 3 for PhD graduates.
Making immigration more difficult for applicants means more obstacles for employers who can only sponsor visas for jobs that require the RQF3 skill level or above, with the annual salary of £25,600 or the average rate for their job, whichever is higher. This threshold can be waived in some instances when the applicant meets specific criteria, but the salary can’t be less than £20,480.
Furthermore, employers need to ensure that the person they want to sponsor has a good command of English, as per the United Kingdom government. For intra-company transfers, those thresholds have been raised, both in terms of salary and the required skill level.
After Brexit, the United Kingdom will no longer be subjected to the EU’s GDPR ruling. To replace the legislation, the UK GDPR was introduced. It closely resembles the Data Protection Act 2018, which once supplemented the GDPR. The legislation was since updated with technical amendments to work in a UK-only context.
In practice, it means that no significant changes occurred. Data can still be freely transferred between companies in the EEA countries, with the GDPR transfer rules applying to any information flowing into the UK, as stated by the Information Commissioner’s Office report.
According to the Department for Exiting the European Union, UK’s domestic legislation exceeded EU-imposed employment protections. Therefore, the decision to leave the EU will not influence worker’s rights in any way.
It includes employment benefits, such as the annual leave, which stands at 5.6 weeks for the UK, compared with the EU-imposed requirement of 4 weeks, and various health and safety rulings, which were governed independently by The Health and Safety at Work etc. Act 1974.
Immigration will always be a complex topic, and AEL does not hold an opinion in this regard. We do, however, see merit in attempting to attract top talent to the UK. AEL also acknowledges the possible difficulties for global companies with a sister or parent organisations in other countries, which will now be unable to benefit from the expertise, culture and cutting-edge practices. This, in turn, may harm the UK business, but this remains to be seen.
It is comforting to know that the GDPR largely remains unchanged. AEL strongly believes that having the EU oversight provided strengthened protection to the UK workers and hopes that the country won’t make a U-turn on the laws created under our relationship with the EU, such as family-friendly rights and the Equality act. In any event, AEL will support both employees and businesses if they have any concerns or wish to develop a strategy to ensure self-preservation in the future.
Racial inequality
Compared to their white British peers, far too many individuals from an ethnic minority background face discrimination when trying to get into, or progress at, work .
According to the McGregor-Smith Review (2017), the employment rate for ethnic minorities is only 62.8%, far below the 75.6% employment rate of white workers. Some ethnic groups face an even worse gap. For example, workers from a Pakistani or Bangladeshi background are only employed at 54.9%.
While 1 in 8 of the working-age population are from a Black, Asian or minority ethnic (BAME) background, BAME individuals only constitute 10% of the workforce and hold only 6% of top management positions. The Parker Review (2016) of the ethnic diversity of UK boards found that only 85 of the 1,050 director positions in the FTSE 100 were held by BAME people.
Tackling discrimination is not only a moral imperative, it is also a business necessity. It is estimated the economy would gain an additional £24 billion from the full representation of BAME individuals in the workplace.
Employers must actively seek to diversify their organisation and rely on diverse talent from different cultural backgrounds. But how can this be achieved? The same activities that increased female representation in organisations could present an interesting test case and pathway for increased BAME representation at the ground level, in management teams and in board rooms.
AEL can audit your position and help you understand the potential untapped value diversity could bring to your business. We can help you advocate for and implement better quality people management, have an open and productive conversation about diversity, develop employer guidance and continually monitor and review your organisational diversity.
Mental health at work
Encouragingly, the CIPD/Simplyhealth Health and Well-being at Work 2018 survey report finds most organisations are taking steps to create a working environment that supports mental health.
The report showed a rise in the number of employers with an awareness of mental health issues and how they affect the workforce (up from 31% in 2016 to 51% this year).Hopefully, this indicates the start of a more open culture around the traditionally stigmatised issue of mental health struggles. Concerningly, the report also showed an increase in common mental health conditions as a cause of absence from work. More respondents this year reported employees experiencing mental health conditions such as anxiety and depression in the last 12 months (55% this year, up from 41% in 2016).
Around half of respondents said their organisation encouraged openness about mental health, was effective at supporting people with mental ill-health and actively promoted mental wellbeing. Less than a third, however, thought senior leaders’ action or behaviour demonstrated any real consideration for mental wellbeing. Respondents were more likely to disagree than agree that managers were confident and competent at identifying and supporting employees with mental health issues.
While they may have some policies in place, many employers fall short at understanding and tackling mental health at work. This is concerning, especially given employers’ duty of care to staff and employee rights in relation to mental health.
We offer employers clear training on how to limit workplace absence and boost wellbeing through proactive and empathetic management.
Latest HR News & Tips
Diversity and Inclusion: Reflections on 2024 and Insights for 2025
As we conclude 2024 and look ahead to 2025, it's essential to reflect on the progress made in diversity and inclusion (D&I) within the UK workplace and understand the legal and practical implications for the future.
This year has seen significant developments in D&I across various sectors:
Companies like Hilton, Centrica, and Premier Inn have implemented inclusive hiring practices, recognising the unique talents of individuals with learning disabilities. Such initiatives not only promote equality but also enhance team morale and innovation.
However, challenges persist. A report from Deloitte revealed that 40% of disabled employees still face workplace discrimination or bullying. This highlights the ongoing need for proactive measures, such as inclusive leadership training and the implementation of clear anti-discrimination policies.
Despite efforts to increase ethnic diversity in boardrooms, progress has stalled, with only 4% of newly appointed directors coming from ethnic minority backgrounds, down from 15% the previous year. Industry watchdogs, such as the Parker Review Committee, stressed the importance of sustained efforts to ensure leadership reflects the diversity of the wider population.
Organisations that succeeded in improving ethnic representation often focused on leadership pipelines, mentorship programs, and transparent reporting on diversity metrics. These strategies benefit representation and enhance decision-making by incorporating a broader range of perspectives.
Social mobility emerged as a critical focus area in 2024, with advocates pushing for greater transparency in socio-economic diversity across industries. Financial services, in particular, came under scrutiny for perpetuating class-based inequalities. Research from the Social Mobility Commission highlighted that individuals from privileged socio-economic backgrounds held 60% of leadership roles in top firms.
To address this, several organisations began reporting on employees’ socio-economic backgrounds and implementing initiatives to recruit talent from underrepresented communities. By addressing the "class ceiling," businesses can unlock broader talent pools and foster greater innovation.
Significant legislative changes in 2024 underscored the UK government’s commitment to fostering inclusivity in the workplace. Key updates included:
1. Inclusive Britain Second Update Report - May 2024
Published in May 2024, this report outlined several new commitments to reduce disparities across racial and socio-economic groups. Key actions included:
- Improving Teacher Diversity: Programs were introduced to encourage more individuals from ethnic minority backgrounds to enter the teaching profession, ensuring students see themselves reflected in leadership roles.
- Inclusive Curriculum Development: Schools began adopting frameworks to teach students about the value of diversity, laying the groundwork for a more inclusive future workforce.
2. Worker Protection (Amendment of Equality Act 2010) Act 2023
The Worker Protection (Amendment of Equality Act 2010) Act, effective October 2024, introduced new responsibilities for employers to prevent workplace harassment proactively. Notably, employers are now required to:
- Demonstrate Reasonable Steps: Employers must show evidence of training and clear reporting mechanisms to prevent harassment.
- Third-Party Harassment: Liability was extended to include incidents involving clients or customers, encouraging companies to foster safer environments for all employees.
3. Gender Pay Gap Reporting: Guidance for Employers
Building on previous legislation, 2024 saw a renewed push for transparency in pay reporting. Employers with over 250 employees were required to publish pay gaps not only by gender but also by ethnicity and disability. This expanded reporting aims to address disparities more comprehensively and ensure accountability.
To foster an inclusive workplace:
- Conduct Pay Audits: Regular audits can identify and address pay disparities, ensuring compliance with evolving pay transparency laws.
- Implement Inclusive Hiring Practices: Revamping recruitment processes to eliminate biases can attract a diverse talent pool.
- Promote Inclusive Cultures: Encouraging mentorship and creating welcoming environments ensure all employees feel valued and included.
As we move into 2025, organisations should:
- Stay Informed: Keep abreast of legal changes and ensure compliance with new D&I regulations.
- Set Clear Goals: Establish measurable diversity objectives and hold leadership accountable.
- Foster Continuous Improvement: Regularly assess and refine D&I strategies to adapt to changing societal expectations and legal requirements.
By embracing these practices, businesses can create equitable workplaces that drive innovation and success.
At Arthur Employment Law, we are dedicated to assisting organisations in navigating the complexities of employment law, including D&I initiatives. Our services include:
- Policy Development: Crafting comprehensive D&I policies tailored to your organisation's needs.
- Training Programs: Providing training sessions to educate employees and management on D&I best practices.
- Compliance Audits: Conducting thorough audits to ensure adherence to current employment laws and regulations.
Partner with AEL to foster a more inclusive and legally compliant workplace. Contact us today to learn how we can support your D&I journey.
Labour’s Proposed Employment Rights Bill: What Employers Need to Know
The July 2024 King’s Speech introduced Labour’s ambitious Employment Rights Bill, a series of sweeping reforms aiming to reshape the UK's employment rights landscape. This proposed legislation could have significant implications for businesses across all sectors, from enhanced worker protections to new reporting requirements.
Here, we break down the key elements of the proposed Employment Rights Bill, analyze its potential impact, and offer guidance on how employers can prepare for these anticipated changes.
What It Means: Under the current legislation, employees must have two years of continuous service to qualify for unfair dismissal protection. Labour’s proposed bill aims to extend this right from the first day of employment, providing employees with immediate protection.
Implications for Employers: This change may limit employers' flexibility in managing probationary periods and may require more rigorous documentation of performance and conduct from the start. It emphasizes the need for fair and transparent dismissal practices.
Action Steps: Employers should review and revise their onboarding and performance management processes to ensure they can document issues effectively from day one. Training HR and management to conduct fair performance assessments will be crucial.
What It Means: The proposed bill seeks to prohibit exploitative zero-hours contracts to protect workers from insecure work arrangements that offer no guaranteed hours.
Implications for Employers: This ban may particularly impact sectors like hospitality, retail, and care, where zero-hours contracts are commonly used. Employers may need to shift to fixed-hour or flexible working contracts that still meet operational demands.
Action Steps: Employers should begin assessing how dependent their workforce is on zero-hours contracts and explore alternative arrangements, such as flexible part-time roles or guaranteed minimum hours. If the bill passes, planning to transition to new contract types will help ensure compliance.
What It Means: Labour proposes creating a new state enforcement body, the Fair Work Agency, to oversee and enforce employment rights, particularly around fair pay and treatment.
Implications for Employers: The establishment of this agency could mean more rigorous and frequent inspections, as well as stricter enforcement of compliance with employment standards.
Action Steps: Ensuring compliance with existing laws will become even more critical. Regular audits of pay, working hours, and employment conditions could help businesses prepare for potential inspections. Employers should also make it a priority to understand and meet all standards to avoid penalties.
What It Means: Another critical component of Labour’s agenda is the Draft Equality (Race and Disability) Bill, which aims to mandate ethnicity and disability pay gap reporting for larger employers, similar to existing gender pay gap reporting.
Implications for Employers: Companies with over 250 employees must measure and report their pay disparities across race and disability, pushing for more transparency and accountability.
Action Steps: Employers should start reviewing their pay structures and practices to identify and address any existing disparities. Proactively implementing diversity and inclusion initiatives can support these changes and enhance the company’s reputation. It’s an excellent time to consult with HR and legal experts to understand the requirements of such reporting.
At Arthur Employment Law, we believe that the proposed Employment Rights Bill offers both challenges and opportunities for UK employers. While these reforms may require significant adjustments, they encourage fairer, more equitable workplaces. Proactive employers who embrace these changes can enhance their reputation, improve employee satisfaction, and reduce turnover.
In particular, establishing fair dismissal practices, developing alternative contracts to replace zero-hours, and addressing pay equity are not just about compliance—they are investments in long-term stability and trust. With the proper planning and support, employers can navigate these changes confidently and strengthen their organizations.
Practical Steps to Prepare for Labour’s Proposed Changes
1. Review Current HR Policies and Contracts: Assess which policies may need adjustments if the bill passes. One key area to consider is transitioning from zero-hours contracts to more stable arrangements.
2. Enhance Documentation Practices: Start documenting employee performance and conduct more rigorously from day one to support fair dismissal practices and avoid disputes.
3. Conduct Internal Pay Audits: Proactively review pay data across gender, race, and disability to identify potential disparities. Implement strategies to address these gaps before mandatory reporting takes effect.
4. Stay Informed: These are proposed changes, so stay updated on the bill's progress. Regular check-ins with employment law resources, like Arthur Employment Law’s blog, can help you prepare for any updates.
Looking Ahead
While the bill is still in the proposal stage, the potential changes are significant enough that employers should consider adjustments now. At Arthur Employment Law, we’re here to help you understand the complexities of the proposed Employment Rights Bill and offer guidance tailored to your business needs.
For further insights or assistance, feel free to contact us. Preparing for these changes proactively will position your business well for the future.
Employment Update: Summer 2024 – Key Legislative Changes for Employers
As 2024 progresses, legislative updates are reshaping the employment landscape. From enhanced protections in insolvency situations to updates in pension auto-enrolment and gender pay gap reporting, employers need to stay informed and compliant.
This post highlights the key legislative changes introduced over the summer of 2024 that affect employers across the UK, offering actionable advice on adapting to these new requirements.
One of the most notable updates is enhancing employee protection in insolvency cases. Under the revised regulations, employees now have greater security in the event of employer insolvency, ensuring quicker access to unpaid wages, redundancy pay, and other entitlements. These updates are particularly relevant to sectors with higher volatility, such as hospitality and retail, where insolvency risks are often heightened.
For employers, it’s crucial to understand these changes to minimize disruption and ensure that employees receive the financial support they are entitled to during such difficult circumstances. Employers should work closely with legal and financial advisors to review their business continuity plans and ensure compliance with the new rules. The Insolvency Service provides further guidance on these updates.
Summer 2024 also saw essential updates to employment permits and immigration policies, particularly regarding workers from the EU and beyond. With Brexit continuing to impact workforce availability, the UK government introduced new provisions to streamline visa applications for skilled workers, making it easier for employers to hire internationally. This includes updated criteria for sponsoring workers and changes to visa eligibility for specific industries experiencing labour shortages.
If your business hires international workers, now is the time to review your employment practices to ensure compliance with updated visa regulations. For more information on the changes and how they may affect your workforce, consult the UK Visas and Immigration (UKVI) website.
Pension auto-enrolment has been a critical topic in 2024, with the government introducing new measures to increase minimum contributions. Starting in July, all businesses must adhere to a higher threshold for employer and employee contributions to encourage long-term savings among the UK workforce. This change is part of a broader effort to improve employee retirement outcomes across all sectors.
For employers, this means reviewing your pension scheme contributions and ensuring that payroll systems are updated to reflect the new requirements. It’s also important to communicate these changes to your employees, ensuring they understand how their pension savings will be affected. The Pensions Regulator provides a detailed breakdown of these changes.
Gender pay gap reporting remains a focal point for employment law, and in Summer 2024, the UK government introduced stricter reporting requirements for large employers. These new rules require companies with over 250 employees to publish more detailed reports on gender pay gaps, including steps they are taking to reduce disparities. Additionally, the framework for reporting has been expanded to cover ethnicity and disability pay gaps for the first time under the Draft Equality (Race and Disability) Bill proposed earlier this year.
For businesses, gender pay gap reporting is not just a compliance issue but a critical reputational factor. Employers are encouraged to meet the reporting requirements and implement proactive strategies for reducing pay inequalities. For guidance on how to address and report on gender pay gaps, visit the Government Equalities Office.
Lastly, there have been notable changes to parental leave entitlements. The updated provisions extend eligibility for shared and unpaid parental leave, offering greater flexibility for working parents. These changes are designed to improve work-life balance for parents and carers, particularly in industries with high demands on employee time, such as healthcare and education.
Employers should update their HR policies to reflect these changes, ensuring employees know their new rights and options. Effective communication is vital, so consider hosting workshops or providing informational sessions to explain these updates in detail. The Advisory, Conciliation and Arbitration Service (ACAS) offers helpful resources on parental leave entitlements.
At Arthur Employment Law, we believe understanding and adapting to these legislative changes is essential for maintaining a healthy, compliant, and productive workplace. Employers proactively embracing these updates can ensure smoother operations while supporting their employees’ rights and well-being.
Whether you’re dealing with new insolvency protections, updating your auto-enrolment schemes, or addressing gender pay gaps, Arthur Employment Law is here to guide you through these transitions with practical advice tailored to your business needs.
For more information on any legislative changes mentioned, contact us directly, or explore the links provided throughout this post for detailed resources and further reading.
Navigating April 2024 UK Employment Law Changes
April 2024 introduced pivotal changes to UK employment law that are set to impact how businesses handle employee rights and workplace practices. From flexible working requests from day one to new leave entitlements, these updates emphasize the importance of understanding and adapting to evolving legal landscapes.
For employers, staying compliant isn't just about avoiding penalties—it’s about creating a supportive environment where employees can thrive. Below, we explore the critical updates and offer practical guidance on navigating these changes effectively.
One of the significant changes that took effect on April 6, 2024, is the expansion of flexible working rights. Employees are now entitled to request flexible working from the first day of their employment, with the option to make up to two requests per year. Employers must respond to these requests within a two-month period. This change reflects the growing recognition of flexible work as a standard expectation rather than a perk reserved for long-term employees.
To comply with these new regulations, it’s essential for businesses to review and update their existing flexible working policies. Consider training managers to handle requests efficiently and empathetically, ensuring that they understand both the legal framework and the potential benefits of accommodating flexible work arrangements. For more detailed guidance, refer to the UK Government’s official announcement.
Another significant update is the introduction of carers leave, which allows employees to take up to five days of unpaid leave per year to care for dependents in emergencies. This measure supports employees juggling work and caregiving responsibilities, enhancing their overall well-being and job satisfaction.
Employers should incorporate carers' leave into their leave policies and clearly communicate this option to employees. Implementing a system to track carers' leave can help manage staffing and workload distribution effectively. For comprehensive insights, check the Department for Business and Trade’s detailed guide.
The April 2024 updates also include strengthened protections for employees on maternity and adoption leave, extending redundancy protection to the end of their leave and up to six months after returning to work. This change is critical in safeguarding against discrimination and ensuring that redundancy decisions involving these employees are handled fairly and transparently.
To align with these updates, employers should revise their redundancy policies and train HR teams on the expanded protections. Ensuring compliance in this area meets legal standards and supports a culture of equality and fairness within the organization. Further details on these protections can be found in the Equality and Human Rights Commission’s latest guidelines.
At Arthur Employment Law, we view these legal changes as obligations and opportunities to foster a more inclusive and supportive work environment. Embracing flexible working from day one can significantly enhance employee satisfaction and retention, demonstrating a commitment to work-life balance that is increasingly valued in today’s job market. Similarly, the introduction of carers' leave acknowledges employees' diverse roles outside of work, while the extended redundancy protections contribute to a fairer workplace for all.
By staying proactive and informed, employers can meet compliance requirements and leverage these changes to improve their organizational culture and employee engagement. Arthur Employment Law is here to support your business through these transitions, offering tailored advice and resources to help you confidently navigate the evolving landscape of employment law.
For personalized guidance or more information, please contact us directly or explore our other resources to ensure your business stays ahead of the curve.
Cost of living crisis impacting employment
At the beginning of November, inflation in the UK sat at 9.3%. This is one of the highest levels of inflation reported since 1982. However, according to the Bank of England, inflation is set to remain ‘very elevated’ throughout 2023.
As the market evolves and the cost-of-living crisis intensifies, workers in the UK are becoming increasingly anxious as their work-to-life balance starts to tip with many people beginning to take up second jobs. This has begun to impact performance at work, with two-thirds of managers reporting issues like rising absenteeism and lack of engagement due to high levels of stress.
There are ways to ease the burden and counter the balance positively.
At Arthur Employment Law we believe it is essential for employers to remain understanding during this economical crisis. We can recommend ways to support employees by encouraging the use of benefit packages that can help employees through these difficult times. For example, some of our clients have implemented budgeting schemes for work. While it is understandable that not all companies can offer monetary assistance, focusing on flexibility, benefits, environment and training can be a huge step towards supporting employees. We believe that employers carving a supportive and positive workplace culture can help to improve the well-being of employees. To keep up with rising costs, many employees are looking for ways to have multiple streams of income. Employees should always be cautious of the working time regulations limit, and not exceed this. While the cost-of-living crisis impacts motivation and mental health, to allow employers to aid you, employees need to keep lines of communication open and remain cautious of their options during economic uncertainty.
AEL recommends supporting employees where possible to manage budgets by signposting to money management initiatives or wellbeing at work schemes. Employers should be creative about ways to support employees such as creating benefit packages that offer discounts or reward good work with vouchers, bonuses or prizes.
While it is understandable that not all companies can offer monetary assistance or increase salaries in line with inflation, focusing on flexibility to accommodate second jobs, and training staff to help build aspirations for promotion with a higher salary range can go some way to easing stress caused by increased costs of living.
We believe that employers carving a supportive and positive workplace culture can help improve the well-being of employees during difficult times. Hybrid ways of working can ease the costs of childcare arrangements as one example of support. Employers should observe working time regulations to ensure staff’s wellbeing, health and safety at work are not compromised. If you are interested in designing an innovative benefits package or conducting a salary benchmarking exercise, do contact us.
Hybrid work and its implications for employers in the UK
The COVID-19 pandemic has had an enormous impact on all areas of our lives. Because of how much of our time is occupied by work, the effects are evident in the job market, where employers had to take measures that at one point seemed radical, only to provide their teams with a safe work environment.
One of those changes was the introduction of hybrid work, which combines the elements of being present at the company’s office and homeworking. To some people, both employers and employees, this idea was far-fetched at first, and when the situation demanded it, no one knew what to expect. How did it play out?
The COVID-19 pandemic has caused two main changes in how people work. It includes primarily the location where work is done and the time in which employees are allowed to perform their duties.
In April 2020, when the first cases of the COVID-19 virus started to appear in the UK, around 47% of people transferred some of their work from the office to their homes, as per the Office for National Statistics, with 86% of them working from home directly due to the pandemic.
At the same time, around 34% of people worked fewer hours than before the pandemic, while around 30% reported working more hours than usual, according to the same report, which shows that the trends brought by the pandemic weren’t always beneficial to employees.
The pandemic experienced great fluctuations in intensity, and we witnessed many waves which caused restrictions to come and go. Even though the situation now seems to be stable, the way COVID-19 has impacted employees proved to many that hybrid work, even though once considered inferior to traditional ways of working, can be beneficial to the entire organisation, with over 41% of companies claiming it has improved organisational productivity, according to research conducted by the Chartered Institute of Personnel and Development.
The effects of homeworking have been even more positive among employees, with 59% of HR decision-makers reporting that hybrid working has had a positive impact on the well-being of their teams, according to new research by Microsoft and YouGov. The same study also claims that over half of employees would consider leaving their current position if the possibility of remote work was taken away from them, which suggests strong implications for employees who should now focus on providing their potential candidates with this opportunity in order to increase talent retention and reduce turnover rate.
At Arthur Employment Law, we believe that the application of hybrid working should be flexible to accommodate the varied needs of employees and allow them to choose between different working systems.
Attending the office and homeworking are characterised by different benefits they can bring to employees. The former enables visibility and allows members of the team to be seen by senior leaders, which can support promotion within the organisation. Flexible work, on the other hand, has the potential to ensure that people who might not be able to work full-time can still become a part of the team. This, in turn, ensures a diverse workforce and allows employees of different groups and demographics to contribute to the organisation.
One thing to remember for employers who decide to introduce homeworking in their organisations is the need to support those unable to attend the office and make them feel included, despite their lack of physical presence.
To facilitate homeworking, AEL supports the 7 strategies for success in hybrid work outlined by the Chartered Institute of Personnel and Development.
UK’s economy during the war in Ukraine
On 24 February 2022, Russian troops entered Ukraine, starting an invasion that many believed would only last for a couple of days. Unfortunately, it soon turned into a war that continues to affect the entire world, and its effects will be visible for many years to come, even after the situation settles down.
What effects has the war had on the UK’s economy? How has it influenced hiring and what should employers know to best approach what is ahead of them?
So far, the UK government has launched two visa programmes to allow Ukrainian nationals to stay in the UK for up to 3 years.
The Ukraine Family Scheme was the first visa scheme in the world to provide support to Ukrainians. It was announced on 1 March 2022 and came into effect 3 days later, enabling Ukrainian nationals to join their UK-based family members.
The Ukraine Sponsorship Scheme, also known as the Homes for Ukraine Scheme, was launched on 14 March 2022 and allows for the immigration of Ukrainians who have a UK-based sponsor to provide accommodation for each individual applying for the visa.
So far, both schemes have seen great popularity, and the total number of applications exceeded 130,000, as of 11 May 2022, with 102,300 visas issued. 37,500 visas were issued for the Ukraine Family Scheme and 64,800 visas for the Ukraine Sponsorship Scheme, respectively, as per the UK government data, which is updated daily.
Ukrainians holding visas issued through the Ukraine Family Scheme or Ukraine Sponsorship Scheme can stay and work in the UK for up to 3 years. Employers can freely hire those individuals on terms similar to those binding holders of other visas. It is worth noting that even though holders of those visas have the right to stay in the UK, they don’t hold refugee statuses.
Ukrainians who are considered refugees can be hired by the Refugee Employment Network or non-governmental organisations working with REN to allow access to fulfilling paid employment opportunities.
A detailed hiring guide prepared by the UK government can be found here. It outlines the rules and requirements for different employment statuses, such as workers, employees, and contractors, to allow employers to access the most recent information on how they can legally recruit Ukrainian immigrants and refugees.
The impact of the war in Ukraine isn’t limited to the neighbouring countries, and it has affected the entire world, especially Europe. It also encourages people to take a political stance and choose a side. While some have shunned Russia, the impact of the sanctions shows that the state of Russia’s economy has been deteriorating progressively, affecting not only people living in the country but also those in regions with some ties to Russia, which is a significant fraction of the world.
At Arthur Employment Law, we believe that people should remain mindful and not let the war impact how they treat each other, especially people of Russian origin, many of whom oppose the war as much as their Western counterparts. It includes not only our personal lives but also the recruitment process, where biases can get in the way and negatively affect the decision-making process.
It is essential since the cost of living has increased across the entire continent of Europe, not only in the UK. Employers need to ensure that their recruitment practices are even more efficient and that the management style within their organisations prevents discrimination and doesn’t lead to costly predicaments such as loss of productivity, financial means, or human capital. Inclusion with a strong emphasis on diversity is one of the ways employers can manage this situation and prepare for the future ahead of them.
UK's employment law after Brexit
The UK officially left the EU on 31 January 2020 and on 1 January 2021, the new rules took effect, limiting the freedom of movement between European Economic Area (EEA) and British citizens.
The changes have affected how businesses and individuals operate, which is especially visible in the areas where the two intersect, such as employment.
Doors are now closed for many immigrants unable to obtain a working visa in the country. EU, EAA, or Swiss citizens who were UK residents before 31 December 2020 could apply to the EU Settlement Scheme, but for others, an employer-sponsored visa is required.
The chief condition is the minimum salary threshold set as £25,600, or the average rate for the applicant’s job, whichever is higher. Other available programs introduced by the British government include the global talent scheme, which is open to highly-skilled scientists and researchers holding EU, EEA, and Swiss citizenship who can now come to the UK without a job offer.
In addition to that, international students who have completed a degree in the UK from summer 2021 are eligible to work, or look for work, in the UK at any skill level for up to 2 years, or 3 for PhD graduates.
Making immigration more difficult for applicants means more obstacles for employers who can only sponsor visas for jobs that require the RQF3 skill level or above, with the annual salary of £25,600 or the average rate for their job, whichever is higher. This threshold can be waived in some instances when the applicant meets specific criteria, but the salary can’t be less than £20,480.
Furthermore, employers need to ensure that the person they want to sponsor has a good command of English, as per the United Kingdom government. For intra-company transfers, those thresholds have been raised, both in terms of salary and the required skill level.
After Brexit, the United Kingdom will no longer be subjected to the EU’s GDPR ruling. To replace the legislation, the UK GDPR was introduced. It closely resembles the Data Protection Act 2018, which once supplemented the GDPR. The legislation was since updated with technical amendments to work in a UK-only context.
In practice, it means that no significant changes occurred. Data can still be freely transferred between companies in the EEA countries, with the GDPR transfer rules applying to any information flowing into the UK, as stated by the Information Commissioner’s Office report.
According to the Department for Exiting the European Union, UK’s domestic legislation exceeded EU-imposed employment protections. Therefore, the decision to leave the EU will not influence worker’s rights in any way.
It includes employment benefits, such as the annual leave, which stands at 5.6 weeks for the UK, compared with the EU-imposed requirement of 4 weeks, and various health and safety rulings, which were governed independently by The Health and Safety at Work etc. Act 1974.
Immigration will always be a complex topic, and AEL does not hold an opinion in this regard. We do, however, see merit in attempting to attract top talent to the UK. AEL also acknowledges the possible difficulties for global companies with a sister or parent organisations in other countries, which will now be unable to benefit from the expertise, culture and cutting-edge practices. This, in turn, may harm the UK business, but this remains to be seen.
It is comforting to know that the GDPR largely remains unchanged. AEL strongly believes that having the EU oversight provided strengthened protection to the UK workers and hopes that the country won’t make a U-turn on the laws created under our relationship with the EU, such as family-friendly rights and the Equality act. In any event, AEL will support both employees and businesses if they have any concerns or wish to develop a strategy to ensure self-preservation in the future.
Racial inequality
Compared to their white British peers, far too many individuals from an ethnic minority background face discrimination when trying to get into, or progress at, work .
According to the McGregor-Smith Review (2017), the employment rate for ethnic minorities is only 62.8% compared with an employment rate for White workers of 75.6%. This gap is even worse for some ethnic groups, for instance, the employment rate for those from a Pakistani or Bangladeshi background is only 54.9%.
Overall, about 1 in 8 of the working-age population are from a black or minority ethnic (BME) background, yet BME individuals make up only 10% of the workforce and hold only 6% of top management positions. The Parker Review (2016) of the ethnicity of UK boards found that only 85 of the 1,050 director positions in the FTSE 100 are held by people from ethnic minorities.
Addressing this issue is not just about tackling discrimination, it is also about boosting business performance. It is estimated the economy stands to gain an additional £24 billion if there was a full representation of black, Asian and minority ethnic individuals in the workplace.
While they may have some policies in place, many employers fall short at understanding and tackling mental health at work. This is concerning, especially given employers’ duty of care to staff and employee rights in relation to mental health.
We offer employers clear training on how to limit workplace absence and boost wellbeing through proactive and empathetic management.
Mental health at work
Encouragingly, the CIPD/Simplyhealth Health and Well-being at Work 2018 survey report finds most organisations are taking steps to create a working environment that supports mental health.
The report showed a rise in the number of employers with an awareness of mental health issues and how they affect the workforce (up from 31% in 2016 to 51% this year).Hopefully, this indicates the start of a more open culture around the traditionally stigmatised issue of mental health struggles. Concerningly, the report also showed an increase in common mental health conditions as a cause of absence from work. More respondents this year reported employees experiencing mental health conditions such as anxiety and depression in the last 12 months (55% this year, up from 41% in 2016).
Around half of respondents said their organisation encouraged openness about mental health, was effective at supporting people with mental ill-health and actively promoted mental wellbeing. Less than a third, however, thought senior leaders’ action or behaviour demonstrated any real consideration for mental wellbeing. Respondents were more likely to disagree than agree that managers were confident and competent at identifying and supporting employees with mental health issues.
We are concerned that many employers do not do enough to understand mental health at work, they have some policies but the subjectivity does not enable a unique understanding of the impact. We offer employers clear training on how to be proactive and empathetic to their employees so they limit workplace absence and ensure wellbeing at work. In addition, staff do not know enough about their rights in relation to mental health so may agree their employer is supportive as they are unaware of the true extent of the employer’s duty of care.