Enquiries to UKFT’s Employment & HR service increased dramatically over the lock down/furloughing period.

Redundancies

Unfortunately, many companies have seen as an inevitability the need for redundancies, and it is noted that the Government has not seen fit to make any changes to redundancy legislation. It was, therefore, necessary for extensive consultation to take place regardless of the numbers of redundancies being considered. The UKFT’s checklist on redundancy is a very useful starting point together with our guidance on whether jobs can be regarded as “unique” and how appropriate pools of workers should be defined.

Some smaller companies with no previous experience of redundancy are still prone to suggest ”last in, first out” as an appropriate selection method, which could cause widespread problems with discrimination. Companies have also been reluctant to ask for volunteers, generally because older more experienced workers are likely to volunteer.

A particular problem has been the ability to consult with employees who were on furlough or working from home. It was important to ensure that companies could successfully prove they had consulted with such employees. Virtual meetings or telephone calls would need to be followed up with written documentation that may need to be presented over a year later. Some companies have undertaken all consultation by letter or email.

There is already considerable evidence that ex-employees are putting in claims for unfair selection for redundancy and such claims have risen by over 60%. Because of the backlog when there was no court activity, Tribunals are now listing cases in 2022. Virtual hearings are now up and running in an attempt to deal with this backlog, but such hearings are taking on average 2/3 days longer than hearings in person. There is also significant anecdotal evidence that unscrupulous advisers are encouraging ex-employees to make a claim, stating that regardless of the strength of the evidence, employers are quite likely to pay something in order to avoid the hassle of a tribunal.

Many companies took early decisions on redundancy in order to avail themselves of the Government’s furlough contribution during the notice period. This was perfectly legal until the end of October. Now whilst it is clear no employee can receive less than 100% of earnings during notice, there is still doubt about whether companies can claim Government assistance for this period if employees are on short time working. Government guidance is due to be published shortly.

New Immigration System

With the announcement of the new points based system for immigration, employers are reminded to ensure all their immigrant workers have applied for and received residency status in the UK coupled with the right to work. Certain companies have expressed concern over the recruitment of warehouse workers under the new regime.

Key recent Employment Appeal and Court of Appeal Cases

• The recent equal pay case at the BBC has clearly demonstrated that the BBC’s defence to this case is not viable. The BBC essentially claimed that the reason for the difference in pay was historic as it was a decision taken on an individual basis in 2008 and contractually had to be continued. Many companies in the fashion and textile sector similarly maintain that pay inequalities are “historic”. This can no longer be regarded as defensible unless “red circling” is transparent.
• A recent “whistleblowing” case was recently dismissed at an Employment Tribunal preliminary hearing as the employee in question wished “to clear their name”. This was overturned by the Employment Appeal Tribunal who ordered that the question “why did you make this disclosure?” must be asked in a full hearing before any Tribunal can determine whether the disclosure is made for personal reasons or is genuinely made “in the public interest”. This decision is likely to result in many more cases going to a full Tribunal Hearing even though they may ultimately fail.
• Another case has finally clarified the question of holiday leave entitlement when an employee has been off sick for the entire holiday year. The statutory leave can be carried over ie 28 days to the next year but not anything in excess of that. This regulation again demonstrates the importance of successfully managing long term sick employees at an earlier stage.
• The Government has announced that it plans to legislate over non-disclosure clauses in Companies’ Settlement Agreements with employees. These gagging orders have come into disrepute following sexual harassment claims. However, no details or timetable are yet available.

Statutory Pay

The Department of Work and Pensions has set out its proposals for increases likely to come into force on 5th April 2020:

• Statutory Sick Pay will rise from £94.25 to £95.85
• Statutory Maternity/Paternity/Parental pay will rise from £148.68 to £151.20

The Government has also accepted the Low Pay Commission’s recommendations as follows:

• The National Living Wage to increase from £8.21 to £8.72 for 25 year olds and over
• The rate for 21 to 24 year olds to increase from £7.70 to £8.20
• The rate for 18 to 20 year olds to increase from £6.15 to £6.45
• The rate for 16 and 17 year olds to increase from £4.35 to £4.55

UKFT members can access the UKFT Employment & HR helpline for expert advice on the furlough scheme, redundancies and other employment issues that businesses may be encountering right now.

With years of employment relations in the UK fashion and textile industry at local and national level, UKFT can provide guidance on a range of issues including:

• Employment Contracts
• Company Handbooks with all Policies, Procedures and Company Rules
• Company Disciplinary and Grievance matters including all warnings and dismissals
• Discrimination issues in relation to recruitment, employment and redundancy
• Employment Tribunal Claims and ACAS conciliation
• Trade Unions matters covering recognition and pay negotiations
• Assistance on employment and HR

The UKFT Employment & HR service

UKFT has considerable experience with regard to advising members on:

• What to consider before employing someone
• How to ensure you effectively manage your relationship with your staff
• How to handle redundancy

UKFT members are able to access the following UKFT employment guides:

• Guide to Employment
• Draft Contract of Employment for Homeworkers
• Draft Contract of Employment
• Draft Grievance Procedure
• Draft Disciplinary Procedure
• Draft Redundancy Procedure
• Redundancy Checklist
• Redundancy Ready Reckoner

UKFT also provides its members with a series of draft policies to help ensure companies keep up to date with HR issues. UKFT draft policies are available on:

• Parental Leave
• Equal Opportunities
• Harassment
• Bullying
• Training & Development
• Employment Tribunal Service

If you find yourself facing an Employment Tribunal, UKFT offers a special service to members. Our employment specialist will assist with any aspect of the procedure, including preparing initial documentation, taking witness statements and representation at the Tribunal. This service is chargeable in addition to your membership fee.

Company Handbooks

UKFT will also help members to write their own Company Handbook, geared specifically to their own circumstances and covering all the areas they deem important.

For further information, UKFT Members with an employment or HR enquiry can contact: info@ukft.org

Find out more about UKFT membership here