We look ahead to the top 10 key themes and Employment Law developments to be aware of in 2021.
- Lockdown 3.0
We begin the new year with a return to what we had become accustomed to during a large part of 2020: lockdown. Along with this come further changes to government guidance on matters including homeworking arrangements and changes to the time limits for submitting furlough claims to the extended Coronavirus Job Retention Scheme (CJRS) which is due to end on 31 April 2021. Find out more about the changes and about the impact of homeworking more generally by reading our blog on some of the frequently asked questions. For further information and support related to COVID-19, please visit our dedicated COVID-19 page.
- Business Immigration post Brexit
Following the end of the Brexit transition period on 31 December 2020, the UK has undergone the biggest change in immigration legislation in a generation. The UK’s new ‘points based’ immigration system has replaced the freedom of movement and applies to the recruitment of most non-UK, non-settled nationals, whether from the EU or from elsewhere in the world (with the exception for nationals of the Republic of Ireland). For further information on the changes, please see the blogs prepared by our Business Immigration Team here.
- IR35
From 6 April 2021 users of self-employed contractors who are medium or large companies in the private sector will be affected by changes to the IR35 regime. These changes allow for liabilities to more easily flow through the supply chain to the end user for decisions on the employed / self-employed status of intermediaries and contractors. Our Recruitment Team has set out further information regarding this on our dedicated IR35 page.
- Gender Pay Gap Reporting is back
Following the one-year suspension of mandatory gender pay gap reporting, employers with a headcount of 250 or more are required to report on their gender pay gap again this year.
For most public authority employers the report must be filed by 30 March 2021 against a snapshot date of 31 March 2020. For private, voluntary and all other public authority employers the deadline is 4 April 2021 against a snapshot date of 5 April 2020.
Given that the employees across the country were working to reduced rates of pay at the time (agreed reductions, furlough, company sick pay, statutory sick pay, unpaid leave etc.) and that the snapshot date falls in last year’s lockdown, it is likely that the reporting year will be unrepresentative for many. If this is the case for you, you may find it useful to complete an optional supporting narrative to accompany your gender pay gap report. We can assist with drafting narratives so please contact a member of our Employment Department if you would be interested in finding out more.
- National Living Wage threshold to include 23 year olds
The Government has accepted the recommendations made by the Low Pay Commission and with effect from April 2020 will reduce the age threshold for receiving the National Living Wage (NLW) from 25 years of age to 23 years of age. The rates for NLW and National Minimum Wage will also increase.
According to the Chancellor of the Exchequer, this lowering of the threshold will mean that around 2 million people will benefit. There are penalties for non-payment of NLW so take action now to ensure that your staff are paid the correct amount.
On the subject of NLW and National Minimum Wage, we’re also awaiting the Supreme Court’s judgment in the Mencap case and will keep you updated.
- Statutory Sick Pay and Statutory Pay for Family Leave
With effect from April 2021 employees and workers will also see an increase of 50 pence to £96.35 for SSP and an increase of 77 pence to £151.97 for statutory maternity, paternity, adoption, shared parental leave and parental bereavement pay respectively.
- Employment Bill
In our article on the direction of travel following the 2019 election victory, we noted that following Brexit the UK would be free to diverge from EU law. We also noted that the Conservative manifesto referred to reviewing employment relationships including leave for parents and carers and to consult on flexible working arrangements.
In the Queen’s Speech following the Conservative’s election win, the government confirmed its intention to bring forward an Employment Bill to include matters such as a single enforcement body, workers getting the right to request a more predictable and stable contract after 26 weeks’ service and a week’s leave for unpaid carers. However, this bill has yet to be laid before Parliament.
- The impact of Brexit on Employment Law
Since the Brexit referendum result was announced, there has been speculation about what would happen to the EU employment rights enshrined in our national law. The government has now confirmed that a review of EU employment rights and how they may be changed is underway while insisting they will not be watered down. Watch this space!
- Flexible Working and a four day week
In December 2019, the government announced that it would consult on making flexible working the default position unless employers have good reasons not to. This would go beyond the current position of a right to request flexible working, rather than a right to work flexibly. Although this consultation is yet to materialise, it shows government’s intention to make flexible working the norm.
With many businesses having to move to homeworking overnight, 2020 saw a step change in flexible working. As employers and employees become more familiar with the different forms of flexible working and their associated benefits (including employee wellbeing and productivity), it is possible that flexible working requests including, perhaps, for a four day week will increase in 2021 and beyond, with employees and employers considering post-pandemic ways of working and the benefits they could bring.
- Consultations
The government has recently provided its final report on the consultation on workplace support for victims of domestic abuse and has written an open letter to employers on this. One of the key themes that came out of the consultation was the important role a domestic abuse policy can play. If you wish to produce a domestic violence policy, please contact a member of our Employment Department.
The following consultations are currently ongoing:
- Consultation on measures to reform post-termination non-compete clauses in employment contracts, including banning them altogether.
- Consultation on extending the ban on exclusivity clauses in employment contracts, to prevent employers from contractually restricting low-paid employees.
Both are due to close on 26 February 2021.
Should you have any queries on any of the topics in this update please contact a member of our Employment Department.
