The UK Government has introduced significant changes to neonatal care provisions, aimed at providing additional support to parents whose babies require extended hospital care after birth. These changes, set to take effect in April 2025, mark a significant step in improving family-friendly workplace rights and ensuring financial assistance during a critical time. The Neonatal Care (Leave and Pay) Act 2023 underpins these reforms, establishing new statutory entitlements for eligible parents.

Key Changes to Neonatal Care Leave and Pay

One of the most impactful changes introduced by the Neonatal Care (Leave and Pay) Act 2023 is the provision of neonatal care leave. This new right grants eligible employed parents up to 12 weeks of additional leave if their baby requires neonatal care. This leave is in addition to existing entitlements such as maternity, paternity, adoption, or shared parental leave. The aim is to alleviate the burden on parents who need to spend extended time in hospital with their newborns.

Eligibility Criteria:

To qualify for neonatal care leave, a baby must be admitted to hospital within the first 28 days of birth and must remain in care for at least seven consecutive full days. Parents eligible for leave include birth parents, adoptive parents, and those in surrogacy arrangements.

Neonatal Care Pay

Employees who meet specific eligibility requirements will also be entitled to neonatal care pay. To qualify, an employee must have completed at least 26 weeks of continuous service with their employer and meet the minimum earnings threshold. The statutory neonatal care pay rate will be £187.18 per week or 90% of the employee's average weekly earnings (whichever is lower).

Implementation Timeline

The changes introduced by the Neonatal Care (Leave and Pay) Act 2023 will come into force on 6 April 2025. The new rights will apply across England, Scotland, and Wales. Employers are expected to update their policies and procedures accordingly before this date to ensure compliance with the new legislation.

Employment Protections

The new law ensures that employees taking neonatal care leave are protected from discrimination, unfair treatment, or dismissal as a result of taking this leave. These protections align with existing rights granted under other family-related leave policies.

Conclusion

The introduction of the Neonatal Care (Leave and Pay) Act 2023 represents a significant step towards improving support for families during challenging times. By providing additional leave and financial assistance, the UK government aims to reduce the stress faced by parents with babies requiring neonatal care. As the April 2025 implementation date approaches, both employees and employers should prepare to embrace these positive changes that prioritise family well-being and workplace support.

If you have any questions or need further guidance on implementing these changes, please don’t hesitate to contact us at hr@skaltd.co.uk 

Creating an inclusive and supportive workplace isn’t just good practice - it’s a legal responsibility.

The Equality Act 2010 is the foundation of UK employment law when it comes to preventing discrimination and ensuring equal opportunities. A key element of this law is the duty to make reasonable adjustments for employees with disabilities; we look at what this means within the workplace.

What are ‘reasonable adjustments’?

A reasonable adjustment is a change that removes barriers preventing a disabled employee or job applicant from working effectively. These adjustments ensure that disabled individuals aren’t at a disadvantage compared to non-disabled colleagues.

What counts as a reasonable adjustment?

Reasonable adjustments don’t have to be expensive structural alterations; sometimes even a simple change can make a difference. Examples include:

• Workplace modifications: installing ramps, adjusting desk heights, or improving lighting for visually impaired employees.
• Flexible working arrangements: allowing remote work, adjusting shifts, or modifying job duties to accommodate an employee’s condition.
• Supportive tools and services: providing assistive technology, sign language interpreters, or extra time for tasks.

Am I legally required to make adjustments?

Employers are legally required to consider adjustments when:

• A workplace rule or practice puts a disabled employee at a disadvantage: for example, strict start times may be difficult for someone with a medical condition requiring frequent treatment.
• A physical feature of the workplace creates a barrier: such as a lack of wheelchair access or inadequate restroom facilities.
• An employee requires additional support to do their job effectively: perhaps someone with a motor impairment might need a specialist keyboard.

What’s counts as 'reasonable'?

Not all requests for adjustments will be considered reasonable, and employers must strike a balance between supporting employees and maintaining business operations. Factors to consider include:

• Company size and resources: larger businesses may be expected to make more significant adjustments than smaller ones.
• Effectiveness of the adjustment: the change should help the employee without placing excessive strain on the company.
• Feasibility and cost: some adjustments may require investment, but grants such as Access to Work can help fund workplace adaptations.

What are the risks of not making reasonable adjustments?

Failing to make reasonable adjustments isn’t just bad for morale; it can lead to legal action for disability discrimination. Unlike unfair dismissal claims, disability discrimination cases don’t require a minimum length of service, and compensation awards can be unlimited - including for emotional distress.

Beyond the legal risks, failing to accommodate employees can damage a company’s reputation and impact employee retention and engagement. Conversely, by understanding and implementing reasonable adjustments, employers can build a workplace where everyone can thrive while staying compliant with the law.

What is best practice for an employer?

• Be proactive: regularly assess your workplace for potential barriers.
• Encourage open conversations: employees should feel comfortable discussing their needs.
• Work collaboratively: engage with employees to find solutions together.
• Keep records: document discussions, decisions, and any adjustments made.
• Seek expert advice: HR professionals and occupational health specialists can provide valuable guidance.

The duty to make reasonable adjustments isn’t just about ticking a compliance box - it’s about creating a workplace where everyone can contribute and succeed. By embedding inclusivity into workplace culture, businesses enhance employee well-being, improve retention, and build a positive reputation.

Remember, a fair and supportive workplace isn’t just a legal requirement; it’s a business advantage.

Contact us at HR@skaltd.co.uk or call 01427 420 403 and #oneoftheteam will be able to help.

At the end of last year, the Government announced changes in costs that all businesses in the UK are set to face from April 2025. These include an increase in tax and National Insurance.

This has put increasing pressure on companies to review their financial situation, which could potentially lead to restructuring the way the business operates and/or redundancies in order to manage these new financial pressures. We look at alternative options and what you should consider in terms of redundancies.

I need to take action – can I avoid redundancies?

Before proceeding with a redundancy situation, there are some alternative solutions that can be explored:

• Limiting or banning recruitment for new positions
• Limiting or banning overtime
• Exploring if employees would work flexibly for a temporary period
• Exploring job sharing for specific positions
• Exploring short-time working or a temporary layoff situation

I’m still going to need to make some employees redundant. What do I need to consider?

It is important that you plan carefully before proceeding with redundancies to avoid both unnecessary panic within the workforce and any potential unfair dismissal claims from employees who have over two years’ service. First steps are:

• Identify a fair reason for redundancy. Generally, this could be either financial difficulties faced by the business or a severe downturn in work.
• Establish who would be affected by the potential redundancy. If this is in a department or employees, those who complete the same job or use similar skills would need to be grouped together in a pool. You then need to understand how many of those similar roles may need to be made redundant.

What if it is only one employee? Or a whole department?

If there is only one employee, this would be classed as a non-pool process, as there are no other employees involved. Again, if a whole department, team or company is closing down then you would need to complete a non-pool process, as there would be no element of scoring that would be required.

Is there any other legislation I need to be aware of?

When planning, be mindful of the Pregnancy and Family Act 2023; this gives employees on maternity or paternity leave 18 months as a protected period, which starts from the expected week of childbirth. This doesn’t mean these employees can’t be included in the redundancy, but they do have the right for first refusal for any alternative job roles.

What happens next?

You will then need to complete a series of consultation meetings with the employees: first a group meeting and then a series of individual consultation meetings.  You need to explain the reasons why the company is exploring this process, why the employee is affected and look at ways to avoid redundancy, taking into account the employee’s skills and any alternative available job roles.

How do you decide who gets made redundant?

A scoring process may have to be completed in a pool process to identify who would be at risk of being made redundant. Ideally the scoring process should be completed by two independent managers to avoid any potential bias. The criteria for scoring could be based on:

• Standard of work
• Skills, qualifications and experience
• Employee’s attendance: any absence related to either maternity or paternity leave or a medical condition should be excluded, to avoid any potential discrimination claims
• Disciplinary records

Can the employee respond?

Once the employees with the lowest scores have been identified, you should give the employees the opportunity to challenge these scores. Once all scoring has been confirmed, the company can conclude the redundancy process by confirming this formally to the employee.

Do I need to pay a redundancy package? How is that calculated?

Employees of over two years would be entitled to a redundancy package, in addition to their contractual notice. Any redundancy payment will be based on the employee’s age, length of service and earnings before tax.

We strongly recommend that any client should contact their HR Advisor for specific advice regarding their redundancy situation to avoid any potential unfair dismissal or discrimination claims.

Contact us at HR@skaltd.co.uk or call 01427 420 403 and #oneoftheteam will be able to help.

A natural phase of life, yet a topic often shied away from in the workplace. Supporting employees going through menopause is crucial for fostering an inclusive and compassionate workplace. Here are five simple ways to support employees during this phase:

1. Encourage Open Communication

Encourage a culture where employees feel comfortable discussing menopause. Normalise the conversation to reduce stigma and make it easier for those affected to seek support without fear of judgment. This can be achieved by raising awareness and educating, normalising conversations, offering confidential support and regularly signposting resources.

2. Make practical workplace adjustments

Supporting employees with practical adjustments can ease the challenges of menopause. You should consider temperature control, uniform adjustments and rest areas. You should also offer flexible working hours or the option to work from home / remotely. Menopause symptoms can be challenging, making the traditional 9-5 challenging. Offering flexible arrangements puts employees at ease.

3. Educate and Raise Awareness

Many individuals are reluctant to discuss that they are going through the menopause due to a lack of understanding and information about it. Implementing training sessions to educate all employees about menopause helps everyone understand what their colleagues might be experiencing and promotes empathy and support within the team.

4. Offer Menopause-Friendly Policies

“It’s important for employers to support employees throughout the menopause, and a policy is a great starting point to demonstrate to employees their health will be taken seriously.” Katie Rees, Senior HR Advisor, Stallard Kane. This policy could include additional breaks, sick leave specifically for menopause-related symptoms, or access to health services. Key legal considerations include: EHRC Guidance, the Equality Act 2010 and Health and Safety at Work Act 1974.You should include details on commitment, inclusivity, support and confidential processes.

5. Appoint a menopause champion

Debra Clark, Head of Wellbeing at Towergate Employee Benefits notes ‘

"As a menopause lifestyle coach, I know the impact menopause can have on people - both directly and indirectly. It is often a confusing time as people work out what is happening due to this significant hormone shift. Having a menopause champion can support opening up this conversation and awareness across a business, driving positive change for the wellbeing of colleagues.”

This person’s role is to provide support, raise awareness and collaborate with HR and management. In addition to their responsibilities they can help facilitate other initiatives such as menopause coffee breaks or support groups. These spaces enable employees to connect, share advice and offer peer support, helping to foster a supportive community within the workplace.

By implementing these strategies, companies can create a supportive environment that helps employees manage menopause with dignity and respect, ultimately leading to a more engaged and productive workforce.

Contact Us

Are you an employee or employer seeking guidance on navigating menopause in the workplace? Our HR team is here to help! Reach out to us today for expert advice and resources tailored to your specific needs.

Contact us at HR@skaltd.co.uk or call 01427 420 403 and #oneoftheteam will be able to help.

Dealing with sickness during the winter period can be challenging for HR as it often coincides with increased demand for time off, festive schedules and other factors like weather-related absences. Here's a guide to managing sickness over this time.

1. Review company policies:

• Sickness reporting: Ensure employees know the procedure for reporting sickness, including when and how to contact HR or their manager.
• Sick leave entitlement: Remind employees of their entitlement to sick leave. Make sure that your policies are clear about how sick leave is managed during holiday periods.
• Holiday pay: Review how sickness affects holiday pay. For example, if an employee falls sick during a scheduled holiday or time off, clarify whether that affects their holiday entitlement.

2. Plan ahead:

• Assess staffing needs: Analyse staffing levels over Christmas and make adjustments to ensure adequate coverage. Consider asking employees to submit holiday requests in advance.
• Temporary support: If you anticipate an increase in sickness or absenteeism, consider bringing in temporary workers or having flexible arrangements where employees can work from home if possible.

3. Encourage early communication:

• Report absences quickly: Ask employees to notify their manager or HR as soon as they know they will be off sick, especially if this affects their planned time off or the holiday schedule.

 4. Flexible work options:

• Remote work: If possible, consider offering remote work or flexible hours for employees who are sick but are still able to work. This helps prevent staffing shortages without employees feeling pressure to come to work when they’re unwell.
• Shortened shifts: If employees are sick but still able to work for part of the day, offer flexible or shorter shifts to allow them to rest and recover.

5. Provide support for sick employees

• Wellbeing support: Support employees struggling with illness or mental health challenges during the holidays.
• Keep in touch: HR or managers should stay in touch with sick employees, especially during long-term illness, to offer support and ensure their return-to-work plan is managed smoothly.

6. Managing abuse of sick leave

• Monitoring patterns: Monitor employees who frequently take sick leave during holidays. If patterns emerge, the situation needs to be addressed per your company’s attendance policy.
• Medical certificates: If you suspect abuse or an employee is absent for an extended period, you may require a doctor’s note or other documentation to verify the sickness.

7. Promote Health and Safety

• Workplace adjustments: If flu or cold season is particularly harsh, ensure the workplace is regularly cleaned and employees have access to hand sanitisers or masks if needed.

8. Offer compassionate leave

• Personal issues or family illness: Recognise that Christmas can be stressful for some employees, particularly those with family health issues. Offering compassionate leave in appropriate circumstances can help maintain good employee relations.

9. Managing return-to-work

• Phased return: For employees who have been off sick for a while, consider offering a phased return to work. This helps them ease back into their role, especially if they return after a long period of illness.
• Stay in contact: Keep communication open with employees off sick to avoid misunderstandings about their return date or work expectations.

Have questions or need assistance? Reach out to us at hr@skaltd.co.uk and #oneoftheteam will be here to help.

With us fast approaching National Grief Awareness Week (2nd-8th December 2024) it is important to raise awareness about grief, provide support to those employees who are grieving, and understand we are approaching a time of year which is very difficult for some. 

There are different forms of bereavement leave. Here we will explore what you, as an employer, should consider in those situations where the person who has died was not a child or dependant of the employee. 

What are my obligations?

If an employee tells you about a bereavement, and the person who has died was not a child or dependant, then the employee has no legal right to time off. 

However, just because there is no specific legal right in this scenario, it does not prevent you as the employer from being compassionate towards an employee’s individual situation.

Should I have a bereavement leave policy?

If you already have a bereavement leave policy you should follow it in terms of consistently applying any criteria that is set out or required, whilst also considering any situation on a case-by-case basis and taking into account any specific or particular need of the employee. 

Your policy may state when this leave could apply, how many days this leave is for and whether it is paid or unpaid. It is important for all employers to be mindful of the wider implications of a bereavement leave policy and consult with their HR Consultant to ensure these wider obligations are met. 

Regardless of whether or not a policy is in place, it is important to consider custom and practice in your workplace and what you have offered employees previously in terms of ensuring a fair and consistent approach. 

What steps should I take as an employer?

You should have a meeting with the employee to discuss what type of leave could be available, explore options and consider if they will be offered leave which is paid or unpaid. Remember that the person who has died may not have been a biological family member, but the employee could have had an equally important and impactful personal relationship with them. 

Am I legally obliged to give time off for funerals?

If an employee tells you about a bereavement and the person who has died was not a child or dependant, then there is no legal right to time off for the employee to attend a funeral. 

Our advice would be for any employer to be compassionate and explore how the employee’s attendance at the funeral could be facilitated. If you do not and have not offer/offered paid time off for a funeral, the employee and employer could agree on using other leave such as leave from their annual entitlement or agree to unpaid leave. 

What about my employee’s wellbeing – how can I support them?

No two experiences of bereavement are the same, and it can have a varying level of impact on employees.

You should ensure the correct level of support is in place. If you have Mental Health First Aid trained colleagues then the offer of support meetings during working hours can help the affected employee, together with bereavement leave and time off to attend the funeral. 

With National Grief Awareness Week highlighting issues surrounding grief and bereavement throughout December, there are a number of charities and sources of further information available; employees can be signposted towards these, depending on their personal circumstances. 

If you believe that you have a scenario which may involve the need to consider bereavement leave for an employee where the person who has died was not a child or dependant of the employee, or you have any questions about this topic, please do not hesitate to contact us and we will be able to assist you. 

Have questions or need assistance? Reach out to us at hr@skaltd.co.uk and #oneoftheteam will be here to help.

From 26 October 2024, employers have a new legal duty to take “reasonable steps” to prevent sexual harassment in the course of employment.

Sexual harassment can be a criminal offence, so it is extremely important that employers handle complaints in the appropriate manner.

What is sexual harassment?

The Equality Act 2010 defines sexual harassment as unwanted conduct of a sexual nature that has the purpose or effect of violating someone’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for them.

Employers’ obligations

Under the Act, employers have a legal obligation to take reasonable steps to prevent the sexual harassment of their workers, not only from their own workers but also third parties which workers may encounter in the course of their employment with you. No employer is exempt from this obligation.

If employers do not comply with their legal obligations, they are acting unlawfully and face potential claims from workers as well as enforcement action.

What action must employers take?

The Equality and Human Rights Commission has provided an 8-step guide for employers which we have summarised below. Whilst this guide is not legally binding, it is likely to be referred to by the employment tribunal when considering whether an employer has met its legal obligations.

A full copy of the guide is available at EHRC publishes updated workplace sexual harassment guidance ahead of change to law | EHRC (equalityhumanrights.com).

Step 1: Develop an effective Anti-Harassment Policy

If you are a Stallard Kane client, you will already have an Anti-Harassment and Equal Opportunities Policy in place. We are now able to provide a new sexual harassment policy to complement these and address the specific requirements of the Guide.

If you are not a Stallard Kane client and would like support with your Anti-Harassment policy, including a sexual harassment policy, please contact our team at hr@skaltd.co.uk

Step 2: Engage workers

Encourage regular engagement with workers, for example by holding appraisal and review meetings, and exit interviews. This will be an opportunity for the Company to consider whether the current processes are working and remind workers of the Sexual Harassment Policy.

Step 3: Assess and take reasonable steps to reduce risk in your workplace

Risk assessments will help comply with legal obligations. A risk assessment should consider a number of factors to prevent sexual harassment, such as power imbalances, a lack of diversity, lone working, customer-facing workers, worker social events, and workplace “banter” culture. This is not an exhaustive list, and employers should consider all potential risks and steps that could be taken to minimise them.

As there are many permutations in workplaces, it is important to consult with and take a collaborative approach with your Human Resources and Health and Safety Consultants at Stallard Kane.

Step 4: Reporting

Your Sexual Harassment Policy will set out how issues should be reported but also consider a reporting system that allows workers to raise issues.

You should also keep a centralised and confidential record of any concerns that are raised.

Step 5: Training

Workers should be trained on what sexual harassment is, what to do if they experience or witness sexual harassment and how to handle any complaints of sexual harassment.

You should review the effectiveness of any training offered and offer refresher training regularly.

Our eLearning Platform can provide online training to help organisations effectively understand and implement the latest legislation regarding the prevention of harassment, with a particular focus on sexual harassment in the workplace. Further information on our eLearning platform is available here. If you would like to discuss this training further, contact our team at training@skaltd.co.uk

Step 6: Reacting to a Sexual Harassment Complaint

Employers should act immediately to address the complaint when made, taking into consideration how the individual raising the complaint wants it to be resolved.

It is crucial that employers react in an appropriate way to sexual harassment complaints ensuring the correct processes are followed to protect all parties involved. Employers are therefore urged to contact their HR Consultant immediately and consult closely with them to ensure the right steps are taken throughout the management of the issue.

Step 7: Harassment by third parties

Employers are not only required to take preventative measures concerning their own workers, but also from third parties with whom workers encounter in the course of their employment such as customers and suppliers. It is important concerns from third parties are treated as sensitively as those involving colleagues.

Consider preventative steps to prevent this type of harassment, such as risk assessing high-risk workplaces where, for example, workers may be left alone with third parties.

Step 8: Monitor and evaluate your actions

Whilst we will work to keep your supporting paperwork up to date, it is important that employers continuously evaluate the effectiveness of the steps in place to prevent sexual harassment in the course of employment, being sure to implement changes that are identified.

The above is a snapshot of the detailed guidance employers must follow to prevent sexual harassment in the workplace.

All employers need to familiarise themselves fully with the legal obligations and consult with their HR and Health and Safety Consultants to ensure these obligations are met.

Contact the HR Team, or your dedicated advisor, to learn more about your responsibilities and how we can support your business through this change.

We're here to help you navigate these changes with confidence.

The Workers (Predictable Terms and Conditions Act) 2023 is a landmark legislation aimed at enhancing job security and work-life balance for employees. The Act mandates employers to provide clearer and more predictable terms and conditions of employment, thereby reducing uncertainty and fostering a more stable working environment.

Key Provisions

1. Advance Notice of Work Schedules: Employers are required to give employees a minimum of two weeks' notice regarding their work schedules. This measure allows employees to better manage their personal and professional commitments.
   
2. Compensation for Schedule Changes: If employers alter a worker’s schedule with less than the mandated notice period, they must provide additional compensation. This provision seeks to disincentivise last-minute changes and compensate workers for any inconvenience caused.
   
3. Right to Request Flexible Working Arrangements: Employees now have the right to request changes to their working hours, patterns, or locations. Employers must consider these requests and can only refuse them on reasonable business grounds.
   
4. Enhanced Transparency: Employers must furnish detailed written statements of employment particulars to new hires within the first week of employment. This statement includes job description, working hours, pay, and other key terms.
   
5. Protections for Part Time and Temporary Workers: The Act extends several protections to part-timeand temporary workers, ensuring they receive similar terms and conditions to their full-timecounterparts when performing comparable duties.
   
6. Limitations on On-Call Scheduling: The Act restricts the use of on-call scheduling practices, which often leave workers uncertain about their hours and income.

Implications for Employers

Employers must adjust their HR policies to comply with the new requirements. This involves updating employment contracts, improving communication channels for schedule changes, and considering employee requests for flexible work arrangements more seriously. Non-compliance could result in legal challenges and financial penalties.

Benefits for Employees

For workers, this Act promises greater job stability and the ability to plan their lives with more certainty. It aims to create a fairer workplace where employees are better informed about their terms of employment and can expect a more consistent and predictable working environment.

Conclusion

The Workers (Predictable Terms and Conditions) Act 2023 represents a significant shift towards more employee-centric labour laws. By prioritising predictability and transparency, it seeks to balance the needs of employers with the rights of workers, creating a more equitable and stable job market.

For additional information or support, please do not hesitate to contact us at HR@skaltd.co.uk or call 01427 420 404 and #oneoftheteam will be happy to help.

Recent changes to TUPE regulations have made things simpler for small businesses, but it remains a complex and often misunderstood area. Here’s what you need to know. 

What is TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment); they are regulations which protect an employee’s rights when they transfer to a new employer.

What exactly is a transfer of undertakings?

A transfer of undertakings happens when there is either a change of service provision, or a business transfer:

Service provision changes

A service provision change takes place when a company that hires a contractor to do work on its behalf either:

• Reassigns a contract (by either outsourcing, re-tendering or, in some cases, subcontracting); or

• The company makes the decision to bring the work back ‘in house’ (where the service changes from being contracted out to being performed by the company themselves).

Business transfers

TUPE can also apply if there’s a transfer of ‘an economic entity that retains its identity'; in other words, the same company providing the same service. 

To establish whether TUPE would apply, companies need to consider the following:

• Is the type of business being conducted by the ‘transferee’ (the new owner, or the employer who is receiving staff) the same as the ‘transferor' (the old owner, or the employer who is transferring staff)?
• Has there been a transfer of tangible assets such as buildings and/or moveable property?
• Are there intangible assets (such as patents, trademarks, copyright, goodwill or brand recognition) transferred at the time of the transfer?
• Have the majority of employees been transferred?
• Have the customers been transferred?
• Is there a high degree of similarity between the activities carried on before and after the transfer?

If the answer to most of the above is 'yes', then TUPE is likely to apply. However, in some cases, just one of the above factors is enough for TUPE to apply.

What are my responsibilities concerning consultation?

When conducting a transfer, the transferor must ensure they conduct a full, meaningful consultation with their employees at the earliest opportunity. Whilst there is no minimum consultation period before the transfer, employers must ensure they allow sufficient time to provide details of the transfer to the nominated employee representatives before the relevant transfer, to ensure that a meaningful consultation takes place. 

Should employers fail to consult properly they can face financial penalties in the form of being required to pay staff up to 13 weeks' pay in compensation. Both the transferor and transferee are liable to pay this.

Who needs to be involved in the consultation?

If there are no trade union representatives in place, the company is required to conduct an election of representatives. These should be taken from the employees that are affected by the transfer. Once nominated, the company must consult with the representatives concerning the transfer, who then share information from the company to the employees and feed any questions or concerns from the employees back to the company. 

Recent changes to the TUPE regulations in April this year have simplified the process for businesses with less than 10 employees in that they can now inform and consult with employees directly if there is no union involvement.

What information do I need to include?

The employer must explain a transfer is to take place and provide:

• Reason for the transfer and when it is expected to occur
• Implications for employees
• Measures that current and new employers expect to take regarding the employees

The above is only a snapshot of the process that needs to be followed. As TUPE is a complex piece of employment law legislation, we would advise that you contact your HR Advisor to ensure that you conform to the current regulations.

As part of the significant employment law changes for 2024, it will become a legal requirement that tips, gratuities, and service charges paid by customers be distributed fairly to workers, without deductions, no later than the end of the following month after receipt from the customer. The main obligation of this legislation is to ensure that 100% of tips are passed to workers (less tax and NI). 

The changes will be in force from 1 October 2024.

The Government believes tips, gratuities and service charges should go to workers, rather than employers as tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Employment (Allocation of Tips) Act 2023 introduces legal obligations to regulate how employers allocate tips among workers.

The Tipping Act applies to pubs, restaurants, cafes, bars, clubs, and other leisure businesses where tips are non-incidental (i.e., once or twice a year). Tips paid by cash or card and controlled by the employer must be managed under the Act. Tips given direct to an employee over whom the company has no control will not be subject to the legislation. 

Under the Act, tips must be distributed fairy to all workers, including zero hours and agency staff with regard to the place of work and where the tip was received. This means that if workers are placed at different sites, they will be entitled to a proportion of tips from each site.

From 1^st October 2024, businesses will have the following legal obligations:

• To allocate qualifying tips etc to workers in a fair and transparent manner.

• To pay qualifying tips etc to workers within one month of the end of the month in which they were received, subject only to authorised deductions (e.g. PAYE where applicable).

• To have a written policy on the allocation of qualifying tips that is available to workers; and

• To Maintain records of all qualifying tips etc. distributed and make this available to workers on request. Employers will be required to keep records for 3 years for each worker – bear in mind, workers will be entitled to view a tipping record.

Whilst Stallard Kane can support the preparation of a suitable policy that meets the legal requirements, employers will first need to consider the following so this can be drafted;  

• You should identify all workers entitled to a proportion of tips and service charge payments received.
  
• Create an appropriate system to ensure all payments received are captured in the ‘pot’ for distribution.

• Set up appropriate systems or documentation for maintaining a complete record of payments received.

• Decide at what intervals payments will be made, bearing in mind the timescales discussed above.

• Consider factors for determining the fair and transparent allocation of payments, in line with the Code. Fairness does not mean that employers must allocate the same proportion of tips to all workers. The employee’s role, length of service seniority, hours worked can all be factors when distributing payment, if distribution is fair and transparent and clearly set out in the Company’s policy. 

• Ensure appropriate personnel are trained to understand how tips are handled.

The Company’s policy must also include how a worker can raise a complaint and how the company will deal with it. 

Ultimately, an employee can refer a claim to ACAS and make a claim at an employment tribunal. 

Your dedicated HR Advisor at Stallard Kane can help ensure you meet your legal requirements from 1 October 2024.