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  4. Previous months legal timeline

Previous months in the Legal Timeline

See what legal activity happened in previous months.

Return to the current Legal Timeline.

Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 June 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 June 2024 July 2024 Aug 2024 Sept 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025 Feb 2025 March 2025 April 2025

January 2022

Publications 

  • Legal Bulletin article on workers and employees taking paid time off to get Covid-19 Vaccinations. Released on 20 January 2022.

Legislation and Government proposals

  • Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) Regulations 2022 in UK and N.I - Under the Statutory Sick Pay Rebate Scheme (SSPRS) is reintroduced providing for certain small and medium-size employers to apply to HMRC for a refund of the cost of paying eligible Statutory Sick Pay to their employees up to a certain threshold where an employee's incapacity for work is related to coronavirus and where any day of incapacity for work falls on or after 21 December 2021. These regulations come into force on 14 January 2022.
  • End of temporary adjustments to sick notes under The Statutory Sick Pay (Medical Evidence) Regulations 2022.
  • Government announced its intention to enable employers and landlords to use certified digital identity service providers to carry out identity checks on their behalf for many who are not in scope to use the Home Office online services from 6 April 2022 which, includes British and Irish citizens. On 17 January, Government published guidance on how organisation can become certified IDVT providers under the new RTW rules.

Case law

  • Kocur v Angard Staffing Solutions Ltd – this case covered various issues on aspects of agency workers’ rights under the Agency Worker Regulations 2010 including Regulation 13(1) – right to be informed about any vacancies, and Regulation 5 – right to same basic working and employment conditions as employees of the hirer. The Employment Appeals Tribunal (‘EAT’) upheld a judgment in this case and the case was appealed. A further hearing took place on 20 January 2022.

Frameworks

  • Crown Commercial Service invitation to tender for the Supply Teachers and Temporary Staff in Educational Establishments framework will be published.
  • Insourcing RM6276 NHS framework from the Commercial Procurement Collaborative has been advertised and this is planned to be re-opened every 6 months.

February 2022

Publications

  • Legal Hot Topics publication. Released on 14 February 2022.

Legislation and Government proposals

  • Covid-19 restrictions in England, including the legal requirement to self-isolate change and the new rules include: 

From 21 February:

  • staff and students in most education and childcare settings without symptoms no longer have to test twice weekly.

From 24 February:

  • people with Covid-19 will no longer be legally required to self-isolate.
  • people in contact with someone with Covid-19 will no longer be advised to self-isolate or take daily test.
  • guidance will remain in place for those who test positive to stay at home and avoid contact with others for at least five full days.

Case law

  • HMRC v Atholl House Productions - Whether the test for deemed employment status for tax purposes is appropriate, due to its potential to cause confusion. There is hope that a decision in the Court of Appeal will provide updated guidance and further clarity. The issue is dealing with and understanding the IR35 rules where they were introduced to the private sector in April 2021. Hearing on 9 February 2022.
  • Smith v Pimlico Plumbers Ltd - The case of Smith v Pimlico Plumbers Ltd considered whether a worker can carry over annual leave entitlement that has been taken, but not paid, because he was misclassified as self-employed. The Court of Appeal ruled that he is entitled to payment for all unpaid holiday that he took during the whole of his working time (five years) on the termination of his employment.

March 2022

Publications

  • Legal Bitesize video released on 14 March 2022.

Legislation and Government proposals

Employment Bill:

The proposed Employment Bill is looking to provide a variety of changes that will “build on existing employment law with measures that protect those in low-paid work and the gig economy”. There is no specific guarantee as to what changes will be made, and when they will happen, but they may include the following:

  • establishing a new single enforcement body for employment rights.
  • extending redundancy protection to six months after returning to work from maternity leave, with similar protection provided to those returning to work from adoption leave and shared parental leave.
  • new rights for workers to request a more stable contract when they have provided more than 26 weeks service.
  • new legislation on post-termination non-compete clauses, over which the Government consulted on and concluded the consultation earlier this year.
  • compensation for workers whose shifts are cancelled at short notice, and an entitlement for workers to receive reasonable notice of allocated shifts.
  • new legislation to enhance the rights for flexible working which is currently being consulted on.
  • The Employment Agencies Standards Inspectorate regulating umbrella companies.

The second reading for this Bill is due to take place in the House of Commons on 18 March 2022 and we will update members when we know more. 

Other changes include:

  • regulations requiring Covid-19 vaccination to work in Care Quality Commission (CQC) registered care homes were lifted from 15 March.
  • regulations making Covid-19 vaccination a condition of deployment in health and social care will be revoked on Tuesday 15 March. Legal requirement for health and social care staff to be double jabbed from 1 April was removed.
  • after 24 March workers can no longer claim SSP from day one (for every day they are not working because of coronavirus).
  • The Statutory Sick Pay Rebate Scheme (‘SSPRS’) commenced from 14 January 2022 and closed on 17‌‌‌ ‌March‌‌‌ ‌2022, after that employer can no longer make a claim under the SSPRS for self isolation or coronavirus-related absences.  But employers have until 24‌‌‌ ‌March‌‌‌ ‌2022 to submit any new claims for absence periods up to 17‌‌‌ ‌March‌‌‌ ‌2022, or to amend claims they have previously submitted.

Events

  • Legal Conference Spring 2022.

April 2022

Publications

  • Legal Bulletin publication expected on 18 April 2022.

Legislation and Government proposals

  • Right to Work checks update

The Home Office announced that employers can use certified Identity Service Providers (IDSPs) to conduct digital identity checks from 6 April. This is a new service, and the cost of these services would be met by employers. The costs of the technology vary from as little as £1.45 per check, to between £50 - £70 per check, depending upon the levels of service supplied by the provider. However, the issue is that for EU nationals, the Employer’s Checking Service (ECS) is free and the ECS is not available to British and Irish nationals. REC’s Campaigns team will be vocal about the concern over costs and continue to push HO for an in-house free system like the ECS.

The technology will allow candidates to upload images of their personal documents, to an Identification Document Validation Technology (IDVT) provider instead of presenting physical documents to a prospective employer, which reduces time and mitigates risk. In addition, the IDVT will remove human error in terms of identifying fraudulent documents or inaccuracies. For more details please see here. The Government has released a draft of the new Employer’s Guide to Right to Work Checks.

  • Gender Pay Gap Reporting

The deadline for gender pay gap reporting by employers in private and voluntary sectors is 4 April 2022.

  • Statutory Rates

2022 Statutory Rate increase from April 2022.

 

The National Living Wage and National Minimum Wage rates from 1 April 2022

 

Rate from April 2022 Previous Rate (April 2021 to March 2022) Increase
National Living Wage £9.50 £8.91 6.6%
21-22 Year Old Rate £9.18 £8.36 9.8%
18-20 Year Old Rate £6.83 £6.56 4.1%
16-17 Year Old Rate £4.81 £4.62 4.1%
Apprentice Rate £4.81 £4.30 11.9%
Accommodation Offset £8.70 £8.36 4.1%

 

Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay rates from 4 April 2022

Type of payment or recovery 2022 to 2023 rate
SMP - weekly rate for first 6 weeks 90% of the employee's average weekly earnings
SMP - weekly rate for remaining weeks £156.66 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) - weekly rate  £156.66 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Adoption Pay (SAP) - weekly rate for first 6 weeks 90% of employee's average weekly earnings
SAP - weekly rate for remaining weeks £156.66 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Shared Parental Pay (ShPP) - weekly rate £156.66 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Parental Bereavement Pay (SPBP) - weekly rate £156.66 or 90% of the employee's average weekly earnings, whichever is lower

 

Statutory Sick Pay (SSP) (New rates apply from April 2022 for the year 2022/2023)

Unrounded daily rates Number of qualifying days in week 1 day to pay 2 days to pay 3 days to pay 4 days to pay 5 days to pay 6 days to pay 7 days to pay
£14.1929 7 £14.20 £28.39 £42.58 £56.78 £70.97 £85.16 £99.35
£16.0583 6 £16.56 £33.12 £49.68 £66.24 £82.80 £99.35  
£19.87 5 £19.87 £39.74 £59.61 £79.48 £99.35    
£24.8375 4 £24.84 £49.68 £74.52 £99.35      
£33.1167 3 £33.12 £66.24 £99.35        
£49.675 2 £49.68 £99.35          
£99.35 1 £99.35            

 

  • National Insurance Contributions 

6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25% for workers and employers. This increase will fund health and social care and will be replaced in April 2023 by a separate health and social care levy (at which time, National Insurance contributions will revert to current levels).

  • Free PPE to Workers

From 6 April 2022, under the Personal Protective Equipment at Work Regulations 1992 in England, Scotland and Wales, all employers (which will include employment businesses) must ensure that suitable free personal protective equipment (PPE) is provided to workers who may be exposed to a risk to their health and safety while at work.

  • Off-Payroll Rules in the Private Sector

It is the first year anniversary of the introduction of the off-payroll rules into the private sector. Since April 2021, medium and large sized business are responsible for deciding the employment status of workers contractors providing their services through an intermediary.

 

Case Law

  • Harpur Trust v Brazel - Concerns calculation of holiday pay for part-time term-time workers. The Court has previously decided that it was wrong to apply a cap of 12.07% of annualised hours, the employer must use the average over the preceding 12 weeks under WTR 1998. The Supreme Court hearing took place on 9 November 2021. We are awaiting the final decision.

May 2022

Publications

  • Hot Topics publication expected on 16 May 2022.

Case law

  • Rodgers v Leeds Laser Cutting Ltd – This case concerned an individual (Rodgers) who was working at a warehouse for Leeds Laser Cutting (‘LLC’) during March 2020 around the beginning of the pandemic. Rodgers developed a cough shortly after the start of the first lockdown and went home, where two days after, he informed LLC that he would not be attending work until the lockdown had eased. A month later, Rodgers claimed that he had been sacked for self-isolating and requested his P45 from LLC, which was provided. Rodgers relied on section 100 of the Employment Rights Act 1996 (automatically unfair dismissal for a health and safety reason), so it would have had to have been established that the reason Rodgers refused to return to the work was due to the threat of COVID-19 on-site, rather than the simple fact that he had concerns regarding the virus in general. The claim was originally dismissed by the Employment Tribunal. Appeal dismissed by the Employment Appeal Tribunal on 6 May 2022.

June 2022

Publications

  • Recruitment Matters publication expected on 3 June 2022.

  • Legal Bitesize Video expected on 13 June 2022.

Legislation and Government proposals

  • Queen's Jubilee, extra bank holiday on 3 June 2022.

Events

Webinars hosted by Department of for Business, Energy and Industrial Action (BEIS)

  • What to expect at an EAS Inspection - Thursday 16 June, 3:00-4:00PM

July 2022

Publications

  • Legal Bulletin publication expected on 11 July 2022.

Legislation and Government proposals

  • Repeal of Regulation 7 of the Conduct of Employment Agencies and Employment Business Regulations 2003 - The repeal of Regulation 7 means that employment businesses can supply temporary workers to temporarily replace workers engaged on official strike or other industrial action. Please see our July 2022 Legal Bulletin for further insight into this.

  • New legislation proposed by DWP, allowing multiple healthcare professionals to certify ‘fit notes’ from 1 July 2022. Further information can be found in the SSP Legal guide, under the FAQ "Changes to who can certify fit notes." 

  • The National Insurance Contributions (Increase of Thresholds) Bill was introduced following the Spring Statement 2022, which stated that the primary threshold for Classes 1,2 and 4 National Insurance contributions are to be aligned with the income tax personal allowance. Clauses 1(3)(b) and 1(4) of the Bill provide that the annual figure of £9,880 is to be replaced with £12,570. The purpose of this bill is to give UK taxpayers a slight increase in their earnings after tax, after the fact that National Insurance contributions were increased from April 2022.  The Bill will take effect from 6 July 2022.
  • The Health and Social Care Act 2022 was introduced and built on earlier recommendations by NHS England to make it easier for health and care organisations by delivering joined-up care for those that require many different services at once. There is curently guidance for adult social care providers to comply with information provisions under section 99 and section 100 of the Act, and further guidance shall be published on the Act in 2023.

Case law

  • Harpur Trust v Brazel – The decision  from this case establishes exactly how annual leave entitlement should be calculated for workers engaged on a permanent contract of employment, but who work irregular hours or for only part of the year. It was concluded that part-time workers would be entitled to full-time holiday pay. The Supreme Court hearing took place on 20 July 2022.

Frameworks 

  • Crown Commercial Service Framework for Supply Teachers and Temporary Staff in Educational Establishments will be awarded to suppliers. 

Events

Webinars hosted by Department of for Business, Energy and Industrial Action (BEIS)

  • Providing a Key Information Document (KID) to Agency Workers - Thursday 21 July, 3:00-4:00PM
  • Regulation 10 - Charging Transfer Fees to hirers - Wednesday 27 July, 3:00-4:00PM

August 2022

Publications

  • Hot Topics publication expected on 15 August 2022.

Legislation and Government proposals

  • EU work-life balance directive to be implemented in UK (subject to terms of Brexit deal). Expected implementation on 1 August 2022. 
  • EU directive on transparent and predictable working conditions to be implemented in UK (subject to terms of Brexit deal). Expected implementation on 1 August 2022. 
  • The EFSA have updated the apprenticeship agreement template on 16 August 2022, to support the 2022/2023 funding rules. The template can be found here.

Events

Webinar hosted by Brabners

  • Holiday Pay and Harpur Trust (REC members' webinar) - Wednesday 17 August, 10:00-11:00AM

September 2022

Legislation and Government proposals

  • The statutory guidance for 'Keeping children safe in education' comes into force from 1 September 2022.
  • Queen's Funeral, extra bank holiday on 19 September 2022. See our guidance on the bank holiday entitlement and the Government announcement.
  • The Retained EU Law (Revocation and Reform) Bill was introduced to Parliament on 22nd September 2022. See the Government announcement for further information.
  • The adjusted Right to Work checks will end on 30 September 2022.

Publications

  • Legal Bitesize video expected on 19 September 2022.

October 2022

Legislation and Government proposals

  • The Transport Strikes (Minimum Service Levels) Bill was announced by Government on 20 October 2022. The bill ensures that even during strikes, transport services will still run to make sure that there is minimal disruption for people trying to attend work, school and medical appointments. The main purpose of this legislation will provide that relevant employers and unions have the opportunity to agree a minimum service level to continue running during all strikes over a 3-month period.  

  • The Professional Qualifications Act 2022 (Commencement No 1) Regulations 2022, SI 2022/936, brings into force sections 9 and 10 of the Professional Qualifications Act 2022 which set out duties on regulators to provide information to a regulator in another part of the UK and to an overseas regulator. Under the PQA 2022, UK regulators of professions such as medicine, nursing, teaching and architecture can recognise the qualifications of skilled professional from around the world. In force from 28 October 2022.

  • The Office for National Statistics (ONS) has published the annual statistics for the differences in pay between men and woman in the UK for 2022. The data establishes that the Gender Pay Gap has increased by 0.6%, where it was at 7.7% in April 2021 and 8.3% in April 2022.

Publications

  • Recruitment Matters expected on 7 October 2022.
  • Legal Bulletin expected on 17 October 2022.

Events

  • Legal and Compliance Matters Conference Autumn 2022.

November 2022

Legislation and Government proposals

  • The Retained EU Law (Revocation and Reform) Bill was introduced to revoke certain retained EU law and to make provision relating to the interpretation of retained EU law and to its relationship with other law. The Bill is currently going thorugh the House of Commons committe stage since 8 November. Government has produced an Impact Assessment relating to this Bill. 

  • The Worker Protection (Amendment of Equality Act 2010) Bill has been given support by the Government and puts the duty on employers to prevent sexual harassment and reinstate employer liability for third-party harassment. The legal test to satisfy the criteria for third-party harassment will be less complex than the previous law dictated. The Bill had gone through the House of Commons commitee stage on Friday 23 November.

Publications

  • Hot Topics publication expected on 14 November 2022.

December 2022

Case law

  • Chief Constable of the Police Service of Northern Ireland v Agnew - A Northern Irish case considering whether a gap of more than three months in a series of unlawful deductions from holiday pay breaks the series, meaning that the limitation provisions kick in to restrict claims for back payments of holiday pay. Supreme Court case re-listed for 14–15 December 2022.
  • Rodgers v Leeds Laser Cutting Ltd – This case concerned an individual (Rodgers) who was working at a warehouse for Leeds Laser Cutting (‘LLC’) during March 2020 around the beginning of the pandemic. Rodgers developed a cough shortly after the start of the first lockdown and went home, where two days after, he informed LLC that he would not be attending work until the lockdown had eased. A month later, Rodgers claimed that he had been sacked for self-isolating and requested his P45 from LLC, which was provided. Rodgers relied on section 100 of the Employment Rights Act 1996 (automatically unfair dismissal for a health and safety reason), so it would have had to have been established that the reason Rodgers refused to return to the work was due to the threat of COVID-19 on-site, rather than the simple fact that he had concerns regarding the virus in general. The claim was originally dismissed by the Employment Tribunal. and the Employment Appeal Tribunal on 6 May 2022. Court of Appeal hearing was on 3 November 2022. Reserved judgment handed down by the Court of Appeal on 20 December 2022 (Appeal dismissed).

Publications

  • Legal Bitesize video expected on 12 December 2022.

January 2023

Legislation and Government proposals

  • Government launches Holiday Pay consultation - Following the Harpur Trust v Brazel  judgment last year, the government has launched a consultation to address the issues on holiday pay calculation that arose from this case. The REC will be submitting a response on behalf of the industry, but you can submit your own response to the consultation as well. The consultation will end after 9 March 2023.

Case law

  • S&L Barnes Ltd v HMRC - The case considered whether there was a 'hypothetical contract' for Stuart Barnes, who was working under a PSC, and if the IR35 Intermediaries legislation applied to his working arrangement. The First-tier Tax Tribunal held that Barnes working arrangement did not satisfy the requirements to establish a hypothetical contract of employment with Sky, due to the nature of Barnes' work. Judgement held on 12 January 2023.

Publications

  • Legal Bulletin publication expected on 16 January 2023.

February 2023

Legislation and Government proposals

  • The Education (School Teachers’ Qualifications and Induction Arrangements) (Amendment) (England) Regulations 2022 - Provides for teachers who hold the qualification known as ‘international qualified teacher status’ (or iQTS) to be qualified teachers in England. From 1 February 2023, 9 more countries will be added to the list of teachers with a teaching qualification of whom can apply to the TRA for QTS.

  • Workers (Predictable Terms and Conditions) Bill - This Private Member's Bill aims to give workers (including agency workers and zero-hours workers) the right to request more predictable terms and conditions of their working pattern. The Bill has gone though it's 2nd reading in the House of Commons on 3 February 2023.

Case law

  • Accattatis v Fortuna Group (London) Ltd - The case considers whether it is automatically unfair to dismiss for concerns about commuting and attending the office during lockdown. The Employment Tribunal held that COVID-19 concerns alone may not justify a refusal to attend work under The Employment Rights Act 1996 if employers have reasonably tried to accommodate concerns by employees and reduce the risk of transmission. Permission to appeal refused on papers. Rule 3(10) (error of procedure) hearing on 9 February 2023.

Publications

  • Legal Bitesize video expected on 3 February 2023.
  • Hot Topics publication expected on 13 February 2023.

March 2023

Legislation and Government proposals

  • Ratification for the International Labour Organisation’s (ILO) Violence and Harassment Convention - The UK ratified the ILO’s Violence and Harassment Convention, and so it shall come into force from 7 March 2023. The Department for Work and Pensions (DWP) has also confirmed that they plan to introduce an obligation on employers to play an active role preventing harassment in the workplace, whether it be harassment by employees, or even by third parties such as clients and customers. This is of significant importance for employers, as the protection from harassment by third parties was repealed in the Equality Act 2010 on October 2013.

  • The Pensions (Extension of Automatic Enrolment) Bill - The Bill proposes that the definition of ‘eligible jobholders’ for auto-enrolment for occupational pensions schemes extends to cover those aged 18-22 years old, and the lower limit for qualifying earnings will be completely removed in relation to this. The Bill is scheduled for a second reading in the House of Commons in March.

Case law

  • UNISON v Secretary of State for Business, Energy and Industrial Strategy - This case considers whether the repeal of Regulation 7 of the Conduct Regulations 2003 was lawful. Hearing in March 2023.

Publications

  • Legal Bitesize video expected on 13 March 2023.

April 2023

Legislation and Government proposals

  • The Department for Work & Pensions has published their proposed increase for statutory rates from April 2023. See our Legal Guide for an updated reflection of the new rates. 

  • The National Minimum Wage and National Living Wage will increase from April 2023. See the information here. 

  • Data Protection and Digital Information (No.2) Bill - The reintroduced Bill will update and provide amendments to the current UK Data Protection laws, in order to provide further clarifcation and supplementation to the legislation that governs this. The Bill has gone thorugh the First Reading in the House of Commons and will have the Second Reading on 17 April 2023. 

  • Retained EU Law (Revocation and Reform) Bill - This Government Bill gives powers to revoke, replace, keep or update certain retained EU law, following the UK exit from the EU. The Bill has gone through the Committee Stage in the House of Lords and the sitting for the Reporting Stage will be on 19 April 2023.

Case law

  • Independent Workers of Great Britain (IWGB) v Central Arbitration Committee - This case considers whether the Court of Appeal was correct in holding that for Article 11 ECHR (in relation to the right to form and join trade unions) to apply to a particular case, an employment relationship must exist. Accordingly, it rejected the IWGB claims that the definition of "worker" for the purposes of section 296(1) TULR(C)A 1992 could include Deliveroo riders where their contracts do not satisfy the requirement for personal service. UKSC hearing on 25 and 26 April 2023.

Publications

  • Recruitment Matters publication expected on 3 April 2023.
  • Legal Bulletin publication expected on 17 April 2023.

May 2023

Legislation and Government proposals

  • King's Coronation, extra bank holiday on 8 May 2023. See our guidance on the bank holiday entitlement and the Government announcement.

Publications

  • Hot Topics publication expected on 15 May 2023.

Neonatal Care (Leave and Pay) Act 2023:

The Neonatal Care (Leave and Pay) Act 2023 came into force partly on 24 May 2023. The Act gives powers to make regulations to create entitlements to Neonatal Care Leave and Pay for eligible employees with responsibility for children receiving neonatal care. The Act will come into force fully at a later date.

 The non-compete consultation:

This month the government published its response to the consultation on the reform of non-compete clauses. In the response the government announced they do not intend to pursue any of the previously proposed measures and instead that they will introduce a statutory limit of 3 months on the duration of non-compete restrictions in contracts of employment.

Working Time Regulations and TUPE

Working Time Regulations

After Government’s announcements on revoking the Sunset clause in the EU Reform Bill and changes to employment law post-Brexit, they published a consultation on areas of retained EU law that they intend to reform. The areas included in the consultation are:

  • Permitting rolled-up holiday pay which is currently unlawful under the Robinson- Steel ECJ Judgment
  • Removing record-keeping requirements for working hours and
  • Combing ‘normal’ holiday leave with ‘additional’ holiday leave, to create a single entitlement
     

Transfer of undertakings (protection of employment) Regulations

Removing the requirement to consult with appointed representatives when there are less than 50 employees in the business and less than 10 transferees.

The consultation is available here on gov.uk and will be open until July 7th 2023. REC will work with our members to respond to the consultation.

June 2023

Publications

  • Hot Topics publication expected on 9 June 2023.
  • Legal Bitesize video expected on 12 June 2023.

Off pay roll rules and set offs

As part of Tax Administration and Maintenance Day back in April, Government has published a consultation on a possible change to allow HMRC to account for taxes already paid by an individual and/or their intermediary when calculating a deemed employer’s tax and NICs liability where an error has been made in applying the off-payroll working rules. This consultation will run until 22 June 2023 and REC is responding to the consultation on behalf of our members as deemed feepayers. The options must address this issue and works effectively to support different parties in the labour supply chain. For more information please see the link here Off-payroll working (IR35) – calculation of PAYE liability in cases of non-compliance - GOV.UK (www.gov.uk)


Umbrella companies call for evidence

Following the call for evidence on the umbrella company market last year, the Treasury have launched a further consultation on proposals to regulate umbrella companies. The REC has called for this to be a priority for government for several years and we are pleased to see them finally taking action to address this issue. The REC will be submitting a response to the consultation in due course; to feed into this please email patrick.milnes@rec.uk.com or sam.beggs@rec.uk.com to share your views. 

July 2023

Publications

  • Legal Bulletin publication expected on 10 July 2023.

Protection from Redundancy Act (Pregnancy and Family Leave) Act 2023

The Act provides protection from redundancy during and after pregnancy or after periods of maternity, adoption or shared parental leave. This will come into force on 24 July 2023.

August 2023

Publications

  • Recruitment Matters publication expected on 8 August 2023.
  • Hot Topics publication expected on 14 August 2023.

September 2023

Publications

  • Legal Bitesize video expected on 18 September 2023.
  • As of the 1st September 2023 the new keeping children safe in education guidance will come into force which will replace the 2022 edition.

Workers (Predictable Terms and Conditions) Act 2023

The Workers (Predictable Terms and Conditions) Act 2023 received Royal Assent and is expected to come into force in September 2024. It introduces a new statutory right for workers (including agency workers and zero-hours workers) to request a more predictable working pattern. This will be accompanied by regulations outlining how the legislation will be implemented. Acas will be producing a draft Code of Practice for consultation in the Autumn which will provide guidance on how to handle requests from workers.

For further guidance on the act please see our bitesize video and our recruitment matters article found on the REC website.

Pensions (Extension of Automatic Enrolment) Act 2023 

The Department for Work and Pensions (DWP) has announced that the Pensions (Extension of Automatic Enrolment) Bill received Royal Assent on September 18, 2023. The Bill introduces powers to reduce the age of automatic enrolment and remove the lower earnings limit.

The Act seeks to abolish the lower earnings limit for contributions (which is currently £6,240 per annum) and reduce the age for being automatically enrolled into a pension scheme from 22 years to 18 years old.

The DWP will launch a consultation on the implementation of these new measures.

October 2023

Legislation and Government Proposals

  • Decision in Chief Constable of the Police Service of Northern Ireland and another (Appellants/Cross Respondents) v Agnew and others published on 4th October. 
  • Updated guidance on fit notes from employers and line managers published on 6th October 2023.

  • Judgement in the Employment Tribunal case of AB v Royal Borough of Kingston upon Thames was published. The case summarises factors to be taken into consideration by an employer in supporting a worker who has undergone gender reassignment on 13 October 2023.

  • Update to Home Office’s guide to Right to Work Checks for employers carrying out right to work checks on or after 17 October 2023. This update removes the requirement for employers to verify a digital Certificate of Application (CoA) with the Home Office Employer Checking Service (ECS) for outstanding EU Settlement Scheme (EUSS) applications made on or after 1 July 2021. The online right to work checking service will also not direct employers to verify a digital CoA with the ECS on 17 October 2023.

  • Launch of the consultation on the draft statutory code for the procedures for making and considering requests under the Predictable Terms and Conditions Act 2023 on 21 October 2023.

  • Enactment of the Economic Crime and Corporate Transparency Act 2023. This creates an offence applying to large entities (including not for profits of a failure to prevent (or have in place reasonable policies and procedures designed to prevent) fraud, and/or false accounting, including fraud by false representation, fraudulent trading and cheating the public revenue on 26 October 2023.

  • An update to the Rehabilitation of Offenders Act 1974 rehabilitation periods table. This is due to the enactment of the Police, Crime, Sentencing and Courts Act 2022 (PCSCA) and a change which came into force on 28th October 2023  under PCSCA  as a result of it on 28 October 2023.

  • The Employment and Trade Union Rights (Dismissal and Re-engagement) Bill was introduced to Parliament on 31 October 2023.

Publications

  • Recruitment Matters publication expected on 13 October 2023.
  • Legal Bulletin publication expected on 16 October 2023.

November 2023

 

Legislation and Government proposals

  • The Employment Equality (Insurance etc) Bill - The purpose of this Bill is to amend Section 9 of the Equality Act 2010, which would prohibit age discrimination by employers for the provision of insurance or other related financial services. The Bill had it's First Reading in the House of Commons on 22 March 2023 and the Second Reading will be on 24 November 2023. 

  • Consultation on a new proposal to repeal of Regulation 7 of the Conduct of Employment Agencies and Businesses 2003 (the Conduct Regulations) - On 6th November 2023, the  government announced its intention to open a consultation on a new proposal to repeal Regulation 7 of the Conduct Regulations.

  • Draft regulations for minimum service levels for rail workers, ambulance staff and border security staff to be laid before parliament on 7th November 2023.

  • Government has published the Draft Code of Practice on ‘reasonable steps’ in relation to Minimum Service Levels under the Strikes (Minimum Service Levels) Act 2023 on the 14th November 2023

  • Government has launched a consultation on fresh proposals to repeal Regulation 7 of the Conduct Regulations. The consutation titled, Hiring agency staff to cover industrial action and was released on the 16th November 2023.

  • The Home Office launched a Draft Code of Practice for the 'Right to Work' scheme on 20 November 2023. This sets out the sets out the prescribed checks and information that must be retained by employers to obtain a statutory excuse against liability for a civil penalty and how the Home Office determines the value of the civil penalty in cases where illegal working is identified.

  • The Employment and Trade Union Rights (Dismissal and Re-engagement) Bill had its first reading in the House of Lords on 21 November 2023.

  • HMRC have published guidance on advisory fuel rates for company car users, when you can use them and how they are calculated on 24th of November 2023

  • HMRC will be publishing guidance on working with umbrella companies on the 30th of November 2023 

  • Following the outcome of the off-set of liability consultation, HMRC will be publishing the new guide on IR35 on the 30th of  November 2023. This guidance will help members comply with the reformed off-payroll working rules (IR35).  

  • Data Protection and Digital Information Bill - The Bill had its report stage on Wednesday 29 November 2023 and was read a third time and passed. It will now proceed to the House of Lords for consideration.

Publications

  • Hot Topics publication is expected on 13 November 2023.

December 2023

 

Case law

  • Kocur v Angard Staffing Solutions Ltd – This case covers various issues on aspects of agency workers’ rights under the Agency Worker Regulations 2010 including Regulation 13(1) – right to be informed about any vacancies, and Regulation 5 – right to same basic working and employment conditions as employees of the hirer. Permission to appeal granted by the Supreme Court and the hearing will be on 7 December 2023.
  • Mercer v Alternative Future Group - Whether the protection from detriment for participating in trade union activities under section 146(1)(b) of TULR(C)A 1992 extends to participation in industrial action. Hearing on 12–13 December 2023.

 

Publications 

  • Legal Bitesize video expected on 11 December 2023.

 

January 2024

Legislation and Government proposals

  • Article 2 of The Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) Order 2008, SI 2008/132, is to be amended to increase the maximum civil penalty for the illegal employment of adults subject to immigration control from £20,000 to £60,000 due to come into force 01 January 2024.
  • The ​​​​Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 is proposed to come into force on 01 January 2024.
  • The Equality Act 2010 (Amendment) Regulations 2023, which is due to codify certain EU-derived discrimination protections which would otherwise have disappeared at the end of this year due to Brexit, is proposed to come into force on 01 January 2024.
  • National Insurance Contributions (Reduction in Rates) Act 2023 - Section 1 of The National Insurance Contributions (Reduction in Rates) Act 2023 reduces the employee primary Class 1 NICs rate that is charged between the Primary Threshold and the Upper Earnings Limit from 12% to 10% with effect from 6 January 2024.

  • The Home Office’s Statutory Code on the Right to Work to come into force on 22 January 2024. This sets out the sets out the prescribed checks and information that must be retained by employers to obtain a statutory excuse against liability for a civil penalty and how the Home Office determines the value of the civil penalty in cases where illegal working is identified

February 2024

  • Employment (Allocation of Tips) Act 2023 - The Department for Business and Trade (DBT) has published a consultation on a draft statutory Code of Practice on the fair and transparent allocation and distribution of tips. Specifically, it will include guidance on how tips can be gathered and distributed, factors which should be considered when distributing tips, and details on transparency measures including the requirement to keep a written tipping policy and to maintain accurate tipping records.

March 2024

Legislation and Government proposals

  • The Statutory Paternity Pay (Amendment) Regulations 2024 is due to come into force on 08 March 2024.
  • The Paternity Leave (Amendment) Regulations 2024 is due to come into force on 08 March 2024.
  • In the Spring Budget 2024, on 6 March 2024, the Chancellor of the Exchequer, Jeremy Hunt announced cuts to the main rate employee National Insurance (NI) and the main rate self-employed NI.
    • Class 1 employee NICs was announced to be cut from 10% to 8% which will take effect from 6 April 2024.
    • The Chancellor also announced an additional 2p cut to the main rate of self-employed National Insurance.
    • Together with the 1p cut announced in the Autumn Budget 2023, this will result in an overall 3% reduction to the main rate of Class 4 NICs for the self-employed.
    • The Spring Budget 2024 has additionally confirmed that the government will consult later in 2024 on the abolition of Class 2 NICs which was also announced in the Autumn Statement 2023.
    • The budget also contains confirmation of the government’s commitment to investigating the possibility of a lifetime provider model for defined contribution pension schemes. 
  • Following the enactment of The Economic Crime and Corporate Transparency Act 2023 in late October 2023, the Government has  brought forward guidance, giving details of the different measures contained in the legislation. From 4th March 2024, under the Economic Crime and Corporate Transparency (ECCT) Act 2023, there are greater powers for Companies House to query information, stronger checks on company names, new rules for registered office addresses, and new lawful purpose statements. Furthermore, there are new requirements to provide a registered email address and to confirm that the intended future activities of the company will be lawful.

April 2024

Legislation and Government proposals

  • Pay Under the National Minimum Wage (Amendment) (No. 2) Regulations 2023 (currently in draft), regulation 57(3) of the National Minimum Wage Regulations 2015, SI 2015/621, will be deleted. The effect of that will be to remove the exemption for live-in domestic workers (e.g. nannies and au pairs) from the national minimum wage on 01 April 2023
  • Update to the off-payroll rules allowing HMRC to ‘set-off’ the taxes the worker or their intermediary (PSC) has paid against what is due to come into force from 06 April 2024 as part of the Finance Bill.
  • Annual National Minimum Wage increases to take effect on 01 April 2024.
  • National Living Wage to be extended to 21 and 22 year olds as of 01 April 2024.
  • Proposed increase to the rates of SMP, SSP, SAP, SSPP. SPBP, and Maternity Allowance to come into effect 08 April 2023.
  • The Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024 are due to come into effect from 06 April 2024.
  • The Flexible Working (Amendment) Regulations 2023 are due to come into effect for flexible working requests made on or after 06 April 2024.
  • Carer’s Leave Regulations 2024 - These draft Regulations are laid to implement a new statutory entitlement to carer’s leave for employees from 6 April 2024. They ensure that this leave will be available to employees for the purpose of providing, or arranging, care for a dependant with a long-term care need. They are due to come into force on 6 April 2024 and the REC has published an article explaining the legislation here. 

  • Changes announced in the Spring Budget 2024 include the employee primary Class 1 national insurance contributions rate is due to be reduced further from 10% to 8%. This is due to come into effect on the 6th of April 2024.

  • The Home office have updated the Right to Work Checklist on the 9th of April 2024

  • On 18th April 2024 the government  announced plans for a new statutory due diligence regime for businesses that use umbrella companies. No announcements have been made as to how this will be impacted by the announcement of the general election on 22nd May 2024. We will keep REC members informed of any updates on this. Please see our publication on the impending laws here. 

  • On the 19th of April, The Department for Work and Pensions (DWP) initiated a call for evidence aimed at examining potential reforms to the fit note process. This initiative seeks to better assist individuals with long-term health conditions in accessing timely work and health support. The call for evidence, announced as part of a broader initiative introduced during the Autumn Statement 2023, will lay the groundwork for further consultations on specific policy proposals. These consultations are expected to be launched later this year.

  • The Department for Business and Trade has released it's response to the consultation on fair tip distribution, introducing an updated draft of the statutory Code of Practice. The Employment (Allocation of Tips) Act 2023 ensures employers cannot withhold tips and comes fully into force on 1 July 2024. 

Case Law 

  • The Supreme Court has passed judgment on the case of Mercer v Alternative Fuel Group Ltd [2021] IRLR 620 on the 17th of April 2024. 

    • Facts:  Mrs Mercer ("Mercer") was employed at a health and social care charity as a support worker and, at the relevant time, was also a workplace representative for her trade union, Unison. Following a trade dispute in respect of payments for sleep-in shifts, Mercer was involved in planning and organising a series of strikes. She was suspended by her employer for just over two weeks and subjected to a disciplinary process. Mercer presented a claim to the Employment Tribunal. She complained that she had been subjected to a detriment because of her involvement in the strikes, contrary to section 146 of TULRCA.

    • Held: The Supreme Court ruled that Section 146 of the Trade Union Labour Relations (Consolidation) Act 1992 (TULRCA) does not safeguard workers from detriment short of dismissal for participating in strikes during working hours. The Court determined that Section 146 only covered industrial action outside of working hours, leaving workers vulnerable to unfair treatment by employers, thus violating Article 11 of the European Convention on Human Rights which guarantees the right to freedom of association.  Furthermore, the court declared Section 146 incompatible with Article 11, prompting the need for legislative amendments by Parliament to address this inconsistency and ensure alignment with human rights standards.​​​​​​

 

  • British Airways PLC v Ms T De Mello and Others: [2024] EAT 53

    • Facts: British Airways cabin crew members contended that the flat-rate meal allowance provided by the airline, which surpassed actual expenses, should factor into their holiday pay calculations. Initially, the Employment Tribunal ruled that a gap of three months or more between deductions would sever the causal link, aligning with the precedent set in Bear Scotland v Fulton. However, upon reconsideration by the Employment Appeal Tribunal (EAT) in light of the Chief Constable of the Police Service of Northern Ireland v Agnew decision, the case was reassessed. 

    • Held: A tribunal must assess the 'real basis' of a payment to determine whether it genuinely and exclusively covers costs (i.e., for expenses and thus excluded from holiday pay calculations) or if it constitutes a performance payment (i.e., part of normal pay and thus included). While originating from a Northern Ireland Supreme Court decision, Chief Constable of the Police Service of Northern v Agnew [2024] IRLR 56 should be considered an authoritative interpretation of ERA 1996, s 23. Consequently, the Employment Appeal Tribunal (EAT) was not obliged to adhere to the ruling in Bear Scotland v Fulton [2015] IRLR 15, which held that a gap of over three months between deductions inevitably breaks a series. It's worth noting that employers lack statutory authority to designate which leave days are treated as statutory versus contractual. However, Agnew does not prohibit such designation within a contract. Nonetheless, any exercise of such power cannot disadvantage the worker compared to a scenario where the power was not exercised.

May 2024

Legislation and Government proposals

  • The Artificial Intelligence (Regulation) Bill was due to have its third reading in the House of Lords on 10th May 2024. Please note that this legislation was not enacted before the dissolution of parliament on 30th May 2024 following the general election announcement on 22nd May. This legislation is therefore unlikely to be enacted in accordance with the timeline previously provided if at all. We will keep REC members informed of any updates on this.
  • The ICO has released a report as a response to the Department for Science, Innovation and Technology’s consultation into its preparations for artificial intelligence (AI). The report lays out the ICO’s strategic approach to AI regulation and explains how the ICO is driving forward the principles set out in the AI Regulation White Paper and the UK government’s guidance on implementing the principles.
  • The Employment and Trade Union Rights (Dismissal and Re-engagement) Bill has had it's third reading in the House of Lords on 10th May 2024. The bill will now go to the House of Commons for consideration

  • The Government has launched a consultation on reforms to employment regulations, which will run from 20th May 2024 to 11th July 2024. The purpose of this consultation is to seek views on: 

    • Reaffirming that only employees are protected by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)

    • Removing the complex obligation to split employees’ contracts between multiple employers where a business is transferred to more than one new business following the Governments ruling on interpretation of the TUPE regulations. 

    • Abolishing the legal framework for European Works Councils.

 

  • The Labour Party has published its "Plan to make work pay - Delivering a new deal for working people" on the 24th May 2024. This document outlines Labour's updated proposals on employment law, which include modifications to some of their initial proposals.

  • The DfE have confirmed their intention to publish the full statutory guidance on the new national agency rules, and the government’s response to the consultation regarding these. Ahead of this publication, the DfE has now published supplementary guidance on the data collection and price caps rules that will be included in the main rules. REC members should note that the publication of the statutory guidance on the agency rules has been delayed following the announcement of the general election.  Please see our publication on the impending laws here. 

  • The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent on 24 May 2023, providing parents with a right to 12 weeks' leave and pay when their baby requires neonatal care in addition to existing parental leave entitlements. Please note that this legislation was not enacted before the dissolution of parliament on 30th May 2024 following the general election announcement on 22nd May. This legislation is therefore unlikely to be enacted in accordance with the timeline previously provided if at all. We will keep REC members informed of any updates on this.

  • The Data Protection and Digital Information Bill. Please note that this legislation was not enacted before the dissolution of parliament on 30th May 2024 following the general election announcement on 22nd May. This legislation is therefore unlikely to be enacted in accordance with the timeline previously provided if at all. We will keep REC members informed of any updates on this.

  • The Paternity Leave (Bereavement) Bill has received Royal Assent on 24 May 2024, becoming the Paternity Leave (Bereavement) Act 2024.

  • The Finance (No 2) Act 2024, which came into force on 24 May 2024, makes provision in relation to finance, including specifying the main rates of income tax for the tax year 2024–2025. The rates remain at 20% for the basic rate, a higher rate of 40%, and a 45% additional rate. 

  • The Economic Crime and Corporate Transparency Act 2023, passed in October 2023, mandates large companies to implement 'reasonable procedures' to prevent fraud, similar to the UK's Bribery Act 2010. Junior Home Office minister Andrew Sharpe mentioned in May 2024 that guidance on the law might be available soon. The act was due to come into force 6 months after guidance on the implementation of the provisions of the act was published. The publication of the guidance has now been delayed following the announcement of the general election. We will keep REC members informed of any updates on this. 

     

June 2024

Legislation and Government proposals

  • The Low Pay Commission (LPC) had launched a consultation seeking evidence to help guide its recommendations on the 2025 national minimum wage (NMW) and national living wage (NLW) rates on the 2nd of April 2024. The consultation closes at 11:59pm on 7 June 2024.
  • The Conservative Party has published its 'Conservative and Unionist Party Manifesto' on the 11th June 2024. This document outlines the Conservative's updated proposals on employment law, which include additional national insurance cuts, further amendments to the Equality Act 2010, and an overhaul of the fit-note system, among other things.

  • The Home Office updated its Employer’s guide to right to work checks for recent changes, including to remove follow up checks for persons with pre-settled status (PSS) under the European Settlement Scheme (EUSS) and to clarify the position on the right to work for asylum claimant Application Registration Card (ARC) holders after Statement of Changes in Immigration Rules HC 590. However, the guidance has not been updated to reflect a key change made in HC 590, notably the expansion of the supplementary work condition for Skilled Workers, and as such it has not clarified to whom the change should apply. The update includes the following:

    • Clarification on the role of the Department for Science and Innovation Technology (DSIT), within the accreditation process of IDSPs and holding a certificate against a current version of the UK Digital Identity and Attributes Trust Framework (UKDIATF).

    • Clarification on follow-up checks involving holders of short-dated Biometric Residence Permits (BRPs) and the Home Office transition to online evidence of immigration status (eVisa).

    • Application Registration Card (ARC) holders granted permission to work in jobs on the Shortage Occupation List or Immigration Salary List. In addition, clarification on follow-up checks of this cohort via the Home Office Employer Checking Service (ECS).

    • Clarification that List A, item 6 of the acceptable documents list also includes consular birth certificates.

July 2024

  • On July 1st, Northern Ireland launched a consultation for the "Good Jobs" Employment Rights Bill. The bill aims to: 
    • Improve employment terms, pay, and benefits.
    • Support working families and enhance work-life balance.
  • Key topics include:
    • Replacing zero-hours contracts with flexible alternatives.
    • Reviewing dismissal and re-engagement (or ‘fire and re-hire’) practices.
    • Examining trade union operations, especially in low-paying sectors.
    • Enhancing work-life balance through rights like disconnecting and expanding family-related leave, including neonatal and carers’ leave.
    • Strengthen employee voice and representation in the workplace. 

The consultation will close on the 30 September 2024 at 17:00.

  • The Government launched a consultation on reforms to employment regulations on 20th May 2024. This consultation will be coming to an end on 11th July 2024. The purpose of this consultation is to seek views on:
    • Reaffirming that only employees are protected by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)
    • Removing the complex obligation to split employees’ contracts between multiple employers where a business is transferred to more than one new business following the Governments ruling on interpretation of the TUPE regulations. 
    • Abolishing the legal framework for European Works Councils.
  • The full statutory guidance on the new national agency rules for Social Workers is expected to be published on the 24th of July. REC members should note that the publication of the statutory guidance on the agency rules has been delayed following the announcement of the general election. Please see our publication on the impending laws here. 
  • The Equality and Human Rights Commission has launched a consultation on proposed amendments to its guidance on preventing workplace sexual harassment. The consultation launched on the 9th of July 2024 and can be accessed here. The consultation closes on 6th August 2024.

  • The Working Time Regulations (Northern Ireland) 2016, SR 2016/49 has been amended to include an express provision about the rights of workers, in certain circumstances, to carry forward annual leave into subsequent leave years and the calculation of holiday pay in relation to those rights. These Regulations came into force on 4 July 2024.

  • The Code of Practice on Dismissal and Re-engagement was published on July 18, 2024, under section 203 of the Trade Union and Labour Relations (Consolidation) Act 1992. It ensures employers explore alternatives to dismissal and engage in meaningful consultation with employees and their representatives, aiming for mutually agreeable solutions to promote fair treatment and minimize disputes in employment changes.

  • HMRC have published the updated the list of named tax avoidance schemes, promoters, enablers and suppliers on 18 July 2024.

  • The Employment Agency Standards (EAS) Inspectorate has released their annual report, 2022 to 2023.

    • EAS considered enforcement actions against 17 employment agencies or businesses, involving 23 individuals and companies, including directors. One case resulted in prosecution proceedings.
    • EAS received 2,300 complaints, marking a 6% increase from 2,170 in 2021-2022.
    • A total of 385 warning letters were issued, primarily for breaches related to the incorrect completion of the key information document introduced in April 2020.
    • EAS recovered £200,507 for individuals due to non-payment or fees for work-finding services, an 18% increase from £169,230 recovered in 2020-2021.
    • With a return to face-to-face inspections, EAS conducted 267 targeted inspections, a 126% increase from 118 in 2021-2022. This led to a 116% increase in identified infringements and a 74% rise in warning letters issued.

August 2024

  • The Equality and Human Rights Commission had launched a consultation on proposed amendments to its guidance on preventing workplace sexual harassment on the 9th of July 2024. The consultation can be accessed here and closes on 6th August 2024.
  • The Statutory Paternity Pay and Statutory Adoption Pay (Parental Orders and Prospective Adopters) (Amendment) Regulations 2024 comes into force on the 26th of August. 

  • On the 22nd of August, HMRC updated the list of named tax avoidance schemes, promoters, enablers and suppliers. HMRC has published details of two more promoters and their schemes on GOV.UK. You can find the current list here. 

  • HMRC has also published Spotlight 64 aimed at Employment agencies, warning them about their use of non-compliant umbrella companies and the potential consequences.

September 2024

  • Workers (Predictable Terms and Conditions) Act 2023 due to come in force.
    • The Workers (Predictable Terms and Conditions) Act 2023 which is due to come into force has been paused the 'wash-up' period that preceded the prorogation of Parliament on 24 May 2024, and its dissolution on 30 May 2024 for the UK general election scheduled for 4 July 2024. The act provides workers a statutory right to request a more predictable working pattern. For further information on the act please see our bitesize video and our recruitment matters article found on the REC website. 
    • It has been confirmed that the Workers (Predictable Terms and Conditions) Act 2023 will not be brought into force. The Act received Royal Assent in September 2023, and Acas had published a draft Code of Practice on handling requests made under it. However, this has now been withdrawn. 

  • On July 1st, Northern Ireland launched a consultation for the "Good Jobs" Employment Rights Bill. The consultation will close on the 30 September 2024 at 17:00.
  • On the 5th of September 2024, the UK signed the first international treaty addressing risks of artificial intelligence (AI). The new agreement has 3 over-arching safeguards:
    • protecting human rights, including ensuring people’s data is used appropriately, their privacy is respected and AI does not discriminate against them
    • protecting democracy by ensuring countries take steps to prevent public institutions and processes being undermined
    • protecting the rule of law, by putting the onus on signatory countries to regulate AI-specific risks, protect its citizens from potential harms and ensure it is used safely.
  • On the 5th of September, HMRC updated the list of named tax avoidance schemes, promoters, enablers and suppliers. HMRC has published details of four more promoters and their schemes on GOV.UK. You can find the current list here. 

  • On the 12th of September, the Department for Education issued statutory guidance for local authorities regarding the use of agency child and family social workers. From 31 October 2024, local authorities must comply with all agency rules for new child and family social work assignments across all contracts for the supply of agency social workers. However, exceptions will apply where existing contractual obligations prevent the implementation of specific rules or parts of a rule.

  • On the 12th of September, the Cabinet Office has announced that the Procurement Act 2023 will now commence on 24 February 2025. The four-month extension from the original go-live date of 28 October 2024 allows additional time for the development of a new National Procurement Policy Statement (NPPS). The Cabinet Office noted that the previous NPPS, created under the former government, did not challenge the potential of public procurement.

  • On the 16th of September, the Supreme Court handed down its judgment on the case of Commissioners for His Majesty’s Revenue and Customs v Professional Game Match Officials Ltd which considered the employment status of part-time referees. The Supreme Court held that there was sufficient mutuality of obligation and that PGMOL had sufficient control over the referees to determine that their contracts were in fact contracts of employment. For this reason, PGMOL was held liable to make deductions for Income Tax and National Insurance contributions in respect of these part-time referees.

October 2024

Legislation and Government proposals

  • Procurement Act 2023 is due to come into effect on 01 October 2024.
  • The Employment (Allocation of Tips) Act 2023 ensures employers cannot withhold tips and comes fully into force on 01 October 2024. In order to pass on tips to their workers effectively, the REC has developed a template policy to assist it's members here. 

  • On the 3rd of October, HMRC published details of three more promoters and their schemes on GOV.UK. You can find a link to current list of named tax avoidance schemes, promoters, enablers and suppliers here. HMRC has also published Spotlight 64 aimed at Employment agencies, warning them about their use of non-compliant umbrella companies and the potential consequences.

  • On the 10th of October 2024, the Labour government passed the highly-anticipated 'Employment Rights Bill'. The bill aims to tackle poor working conditions and promote economic growth - benefitting businesses and workers alike.

  • The Worker Protection ( Amendment of Equality Act 2010) 2023 are came into force from 26th October 2024. REC have drafted a Sexual harassment policy and a Sexual harassment due diligence checklist for members to use. 
  • On the 29th of October, ACAS released Guidance on Gender Reassignment Discrimination. The guidance highlights what the law says, the different types of gender reassignment discrimination, making and handling complaints and preventing discrimination.
  • As part of the government’s plan to Make Work Pay, they have launched the following consultations:

    • Zero-Hours Contract Measures for Agency Workers - The government has launched a consultation seeking views on the application of measures to address the one-sided flexibility in zero-hours contracts for agency workers. Proposed measures include introducing a right to guaranteed hours based on regularly worked hours, a right to reasonable shift notice, and payment for cancelled shifts. The government will consult later on implementing these measures more broadly. The consultation closes at 11:59 pm on 2 December 2024.

    • Modernising Industrial Relations Framework - The government has launched a consultation to modernise the laws governing trade unions. This consultation seeks views on simplifying the information unions are required to provide during industrial action, extending the expiry of the strike mandate, strengthening protections during the trade union recognition process, and adjusting political fund ballot requirements. The consultation closes at 11:59 pm on 2 December 2024.

    • Statutory Sick Pay (SSP) - The government has launched a consultation on Statutory Sick Pay (SSP), seeking views on what the percentage replacement rate should be for those earning below the current SSP rate. This consultation aims to address the adequacy of SSP for low-income earners. The consultation closes at 11:59 pm on 4 December 2024.

    • Collective Redundancy and Fire and Rehire - The government has launched a consultation seeking feedback on measures to enhance the collective redundancy framework and protect employees from fire and rehire practices. For collective redundancy, the government is exploring options to extend the maximum protective award period from 90 to 180 days or remove the cap entirely. Additionally, feedback is sought on whether interim relief should be provided for unfair dismissal claims under fire and rehire. The consultation closes at 11:59 pm on 2 December 2024.

  • The government has also published a Next Steps document which outlines future reforms. These include:

    • a ‘right to switch off’, providing workers with the right to disconnect outside of working hours and not be contacted by their employer except in exceptional circumstances; and

    • a move towards a single status of “worker” and simpler two-part framework for employment status.

  • The Health and Safety at Work etc. Act 1974 (Amendment) Bill had its first reading in the House of Commons on 21 October 2024. The Bill seeks to place a requirement on employers to take proactive measures to prevent violence and harassment in the workplace, including making provisions for protections for women and girls in the workplace and requiring the Health and Safety Framework on violence and harassment in the workplace.
  • On 30 October 2024, Chancellor of the Exchequer Rachel Reeves will deliver the Autumn Budget, accompanied by a full fiscal statement from the Office of Budget Responsibility (OBR). The OBR have agreed the timetable for the forecast process and published the detail here. 

November 2024

  • Following the introduction of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), the UK government has taken steps to combat rising levels of economic crime by holding organisations accountable for failing to prevent fraud. To support this initiative, the government has released new guidance on the "failure to prevent fraud" provisions. 

  • On 6 November 2024, the UK Information Commissioner’s Office (“ICO”) published a report following consensual audit engagements conducted between August 2023 and May 2024 with developers and providers of artificial intelligence (“AI”) powered sourcing, screening, and selection tools used in recruitment

  • The National Insurance Contributions (Secondary Class 1 Contributions) Bill was introduced to the House of Commons on 13 November 2024. The second reading date has not yet been announced. The Bill is expected to come into force in April 2025.

  • The Employment Rights Bill 2024-25 which was introduced on 10 October 2024 is currently in the committee stage in the House of Commons as of the 26 November 2024. On the 27 November, an amendment paper providing amendments to the Bill was published.

  • The Employment Rights Bill, introduced by the government on 10 October 2024, has undergone significant amendments during parliamentary proceedings. An amendment paper published on 28 November 2024 outlines key revisions aimed at addressing inconsistencies and refining technical aspects of the draft legislation prior to its enactment. For detailed information, refer to the Employment Rights Bill: supporting documents on the UK government's official website.

  • HMRC's advisory mileage rates for employees using company cars was updated on 25 November 2024, applying from the 1st of December 2024.

December 2024

As part of the government’s Make Work Pay plan, the following consultations are closing soon:

  • The consultation on Zero-Hours Contract Measures for Agency Workers, which seeks views on guaranteed hours, reasonable shift notice, and payment for cancelled shifts, closes on 2 December 2024.

  • The consultation on Modernising Industrial Relations Framework, which focuses on reforms to strike mandates, trade union recognition processes, and political fund ballot requirements, closes on 2 December 2024.

  • The consultation on Collective Redundancy and Fire and Rehire, which explores extending protective award periods and providing interim relief for fire and rehire-related unfair dismissal claims, closes on 2 December 2024.

  • The consultation on Statutory Sick Pay (SSP), which seeks feedback on SSP rates for low-income earners, closes on 4 December 2024.

  • On the 3rd of December 2024, the government launched a new self-help online tool designed for umbrella company (UC) employees and employment businesses (EB) to estimate take-home pay and understand deductions. This initiative, announced at the Autumn Budget, aims to support UC employees and EB customers in accurately determining their tax positions. The tool provides an estimated pay calculation based on information from payslips, detailing assignment rates, gross pay, net pay, and common deductions such as Income Tax, National Insurance Contributions (NICs), Apprenticeship Levy, pension contributions, and student loans. It also helps identify incorrect deductions, ensuring accurate tax payments. The tool is available on GOV.UK: Work out pay from an umbrella company.

  • On the 17th of December the government has introduced the Children’s Wellbeing and Schools Bill which was introduced to the House of Commons and given its First Reading.

  • The Department for Communities Northern Ireland has launched its consultation on the draft Gender Pay Information Regulations, as mandated by section 19 of the Employment Act (Northern Ireland) 2016. Proposal for employers in public, private, and voluntary sectors with 250 or more employees are to publish gender pay information. Consultation closes on 14 February 2026.

  • HMRC took legal action against Ducas Limited and two other companies (Enix Services Ltd and FL Capital Holdings LTD) and successfully obtained a Freezing Injunction in the Higher Court, which prevents Ducas and FL Capital from removing assets from the UK. Other orders were sought for the purpose of preserving evidence. The action was taken due to alleged fraud relating to non-payment of employer national insurance contributions. You can read more on our publication found here.

January 2025

  • HMRC updated their list of named tax avoidance schemes, promotors, enablers and suppliers on 16 January 2025.
  • The Guidelines for Compliance has published the Help with labour supply chain assurance (GfC12) on 16 January 2025. The guidelines may assist members in their umbrella company due diligence.
  • The government published their Review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26 on 21st January 2025.
  • The Exchequer Secretary to the Treasury commissioned an independent review of the Loan Charge on 24th January 2025. The review is due to report back in summer 2025.
  • On 27th January 2025, amendments were made to the Employment Rights Bill which was introduced on 10th October 2024. The amendments to the bill can be found here.
  • The Department for Work and Pensions and the Department of Business and Trade have commission a non-statutory independent review (Keep Britain Working) to address the increasing economic inactivity linked to ill health and disability in the UK on 24 January 2025.
  • The Border Security, Asylum and Immigration Bill 2025 was introduced to Parliament on 30 January 2025.

February 2025

  • The Procurement Act 2023 is due to come into force on 24th February 2025.
  • The Data Protection (Charges and Information) (Amendment) Regulations 2025, increasing the annual data protection fees payable to the ICO across all tiers of the charge structure by 29.8%, is due to come into force on 17th February 2025.
  • The Statutory Adoption Pay (Report on Extension to the Self-Employed) Bill has its first reading on 4th February 2025. The Bill would require the Secretary of State to report to Parliament on the merits of extending eligibility for statutory adoption pay to persons who are self-employed or contractors.
  • On 13 February 2025, HMRC published details of four additional promoters and their tax avoidance schemes on GOV.UK. The newly named promoters and schemes include:
    •  Umbrella Link Ltd – Markets its services to professionals in finance, healthcare, IT, law, energy, transport, media, and engineering. HMRC also suspects it targets social workers.
    • Trident Umbrella Limited – Suspected by HMRC of targeting social workers
    • Vortexx Limited – HMRC believes employees in the social work and local authority sectors have used this scheme. Individuals appear to be employed by Vortexx Limited while working for local authorities.
    • Remuneration Assured Ltd – Listed as a tax avoidance scheme promoter.
    • Rainbowpay Ltd has also been added to the list of named tax avoidance schemes.​​​​​​

The full list of named tax avoidance schemes, promoters, enablers, and suppliers is available here. 

March 2025

  • The Employment Rights Bill amendments were published on 4th March 2025. The REC published guidance on what REC members need to know which can be found here.
  • Health and Safety at Work etc. Act 1974 (Amendment) Bill is due to have its second reading in the House of Commons on 7 March 2025. The Bill seeks to place a requirement on employers to take proactive measures to prevent violence and harassment in the workplace, including making provisions for protections for women and girls in the workplace and requiring the Health and Safety Framework on violence and harassment in the workplace.
  • The Statement of Changes in Immigration Rules HC 733 were announced on 12th March 2025, along with the Explanatory Memorandum.
  • The Children's Wellbeing and School Bill passed its third reading in the House of Commons on 18th March 2025 and will now go to the House of Lords for consideration.
  • Certain provisions of The Economic Crime and Corporate Transparency Act 2023 (Commencement No 4) Regulations 2025 came into effect on 18th March 2025, with remaining measures due to come in on 1st September 2025. This includes measures creating a new offence of failing to prevent fraud (as far as they are not yet in force).
  • The European Commission has proposed a six-month extension of the two 2021 adequacy decision in the UK, allowing the continued free flow of data until 27th December 2025. This is yet to be approved and we will update members once there is more information.
  • The Border Security, Asylum and Immigration Bill 2025, which was introduced to Parliament on 30th January 2025, was amended on 31th March 2025 to extend the scope of employers required to carry out right to work checks on their employees. Employers will therefore be required to carry out right to work checks where they engage individuals under a worker contract, those who engage individual sub-contractors or where a substitute is used.
  • The Data (Use and Access) Bill should be ready by Spring 2025, stated data minister Chris Bryant in a conference on 12th March 2025. The REC will publish updates as and when they are available.
  • On the 17th of March 2025, the European Commission proposed a six-month extension of the two 2021 adequacy decisions with the UK to allow continued free flow of data until the 27th of December 2025. This decision has not yet been finalised and has been submitted to the European Data Protection Board for review.

April 2025

  • The UK Government has accepted the Low Pay Commission’s (LPC) recommendations for National Minimum Wage (NMW) and National Living Wage (NLW) rates, alongside updates to National Insurance Contributions (NICs). These changes will take effect on 1st April 2025.​​​​​​
    • National Living Wage (NLW) for workers aged 21 and over will increase by 6.7% to £12.21 per hour.
    • National Minimum Wage (NMW) increases for younger workers:
      • 18-20 age group: Increase by 16.3% to £10.00 per hour.
      • 16-17 age group and apprentices: Increase by 18% to £7.55 per hour.
      • Accommodation Offset Rate: Increase by 6.7% to £10.66 per day
  • National Insurance Contributions (NICs) Changes Effective 6 April 2025
    • Primary rate of secondary Class 1 NICs (paid by employers) will rise from 13.8% to 15%, a 1.2% increase.
    • Class 1A and Class 1B employer NIC rates will also increase in line with this change.
    • Secondary Class 1 NICs threshold (the point at which employers begin paying NICs) will:
      • Be reduced to £5,000 per year (down from £9,100).
      • This reduced threshold will remain in place until 5 April 2028.
      • From 6 April 2028, the threshold will increase annually in line with the Consumer Price Index (CPI).
  • Article 8 of the Social Security Benefits Up-rating Order comes into effect from 6th April 2025, increasing the rate of statutory sick pay from £116.75 to £118.75 per week.
  • You may wish to refer to the REC's Frequently Asked Questions on the increase to employer's NICs, NLW/NMW, and other statutory payments here.
  • The DBT has confirmed the implementation of Neonatal Care Leave and Pay will be effective from 6th April 2025, subject to Parliamentary approval. This new entitlement, stemming from the Neonatal Care (Leave and Pay) Act 2023, will allow eligible parents to take up to 12 weeks of additional leave when their baby is admitted to neonatal care within 28 days of birth and remains in hospital for at least 7 consecutive days. Neonatal leave will be a day one right for employees, with Statutory Neonatal Care Pay available to those meeting continuity of service and minimum earnings requirements.
  • The Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran’s Relief) Regulations 2025 is due to come into force on 6th April 2025.
  • On 9th December 2024, the UK government published The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 which comes into force on the 6th of April 2025. The Regulations amend the Companies Act 2006 thresholds for a company and an unincorporated organisation to be classed as "small" and therefore exempt from the off-payroll rules (IR35) and certain tax reporting obligations. From the 6th of April 2025, either a company or an organisation will  be considered “small” if they meet two of the following three criteria in the previous two financial years:

    • A turnover of not more than £15 million (an increase from £10.2 million)

    • A balance sheet total of not more than £7.5 million (an increase from £5.2 million)

    • Not more than 50 employees.

  • The new thresholds will be treated as having applied in previous financial years from 6th April 2025 to ensure that companies and unincorporated organisations can benefit from the new thresholds as soon as possible after the legislation comes into force.

  • The Employment Rights (Increase of Limits) Order 2025 comes into force from 6th April 2025, increasing the compensation limits for employment tribunal claims.

  • The Court and Tribunal Fees (Miscellaneous Amendments) Order 2025 is due to come into force on 8th April 2025, amending selected court and tribunal fees.

  • Businesses who operate their annual leave year from 1st April to 31st March should be aware that the 2024-2025 period includes only seven bank holidays, one fewer than the typical eight. Please see our recent publication for further guidance here.

  • The Gangmasters (Licensing Conditions) (Amendment) (Fees) Rules 2025 amend the prescribed fees in Rule 6(5) of the Gangmasters (Licensing Conditions) Rules 2009. This is due to come into force on 28th April 2025. The increased fees are due to be as follows:

    • For businesses with an annual turnover of £10 million or more, the application or renewal fee will be £4,000 and the inspection fee will be £4,500.

    • For businesses with an annual turnover from £5 million to less than £10 million, the application or renewal fee will be £3,100 and the inspection fee will be £3,720.

    • For businesses with an annual turnover from £1 million to less than £5 million, the application or renewal fee will be £1,860 and the inspection fee will be £3,330.

    • For businesses with an annual turnover of less than £1 million, the application or renewal fee will be £620and the inspection fee will be £2,870.

  • On 1st April 2025, the Court of Appeal heard the case of Storm Global Ltd and Ryanair v Lutz. Mr Lutz was a contractor pilot whose services were supplied to Ryanair by agency Storm Global (previously MCG). The contract between Mr Lutz and MCG was expressed to be for a fixed term of 5 years. The judgement has yet to be published.

  • The judgment for the case of Mantides v HMRC was handed down on 7th April 2025. The Claimant, a doctor, provided services to two hospitals via his personal services company (PSC). HMRC concluded that his income should be subject to income tax and national insurance. The Claimant appealed.

    • The First Tier Tribunal (FTT) found that if the Claimant had contracted directly with Medway Maritime Hospital, he would not have been considered an employee for tax purposes. However, if he had worked directly for Royal Berkshire Hospital, he would have been deemed an employee, triggering tax liability under IR35 rules. The Claimant appealed.

    • The Upper Tribunal (UT) held that the FTT had been wrong to find that the Royal Berkshire was required to give the Claimant at least one week’s notice and that it was under an obligation to seek to provide 10 half-day sessions per week. The FTT’s decision was set aside.

    • A few years later, the UT reconsidered the case and reached the same conclusion as the FTT: the Claimant was an employee for tax purposes.

  • From 8th April 2025, under the Economic Crime and Corporate Transparency Act (ECCTA) 2023, individuals will be able to voluntarily verify their identity. This is part of the phased introduction of identity verification as in the future identity verification will become compulsory for:

    • new directors and people with significant control (PSCs)

    • existing directors and PSCs

    • anyone acting on behalf of a company.

  • Updated Vento bands for injury to feelings awards in employment tribunal claims will apply to claims presented on or after 6th April 2025.

  • The Drivers' Hours and Tachographs (Amendment and Modification) Regulations 2025 amend three pieces of assimilated direct legislation in relation to road transport. This comes into force  on 21st April 2025.

  • On 8th April 2025, the government published guidance on 'Examples of good practice for umbrella companies in the temporary labour market'. The guidance proposes actions you can take as an umbrella company to support compliance and best practice in the temporary labour market, as well as addresses concerns that businesses, legal experts, and others have consistently reported to the government about the conduct of umbrella companies. If you’re a worker, recruitment agency or others in the supply chain, you may also use these examples to help choose which umbrella companies to engage with.

  • On 16th April 2025, the UK Supreme Court handed down their judgment in the case of For Women Scotland Ltd (Appellant) v The Scottish Ministers (Respondent) where it concluded that the Equality Act's definition of a 'woman' is based on biological sex.

  • On 24th April 2025, the DBS ID checking guidelines for Standard/Enhanced DBS check applications were updated. There are now three options for viewing ID documents, the third of which is seeing the ID documents via video and then only seeing the original documents on the first day of employment. E-Visas have also been added to the list of group 1 primary identity documents.

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