Acas publishes new Code of Practice on flexible working

Workplace expert, Acas, has published its new statutory Code of Practice on requests for flexible working alongside accompanying guidance.

From today, all employees will have the right to ask their employer if they can work flexibly from their first day of employment. This right previously only applied if employees worked for their employer for 26 weeks or more.

Susan Clews, Acas Chief Executive, said: “There has been a global shift to flexible working following the pandemic, which has allowed more people to better balance their working lives and employers have also benefitted from being an attractive place to work.

“Our new Code aims to foster flexible working further and covers the new law changes. It sets out good practice on flexible working requests and will help employers and employees avoid any pitfalls.

“There are many types of flexible working such as part-time working, flexitime, job sharing, staggered hours, hybrid and homeworking. The starting position for businesses should be to consider what may be possible.”

The new Code covers the new changes to the law around statutory flexible working requests. These are:

  • A new right to request flexible working from the first day of employment
  • Allowing an employee to make two flexible working requests in any 12-month period rather than one
  • A new requirement that an employer must not reject a request without consulting the employee first
  • Employers now having two months to decide on the request rather than three months.

The new Code underwent a consultation process in its draft form last year. 77% of respondents to the consultation agreed that Acas should reconsider the overall good practice principles when updating the Code to reflect changes to the law.

The Code encourages employers to take a positive approach to flexible working so that requests are not rejected by default without due consideration and an open dialogue about what may be workable.

It is important for employers to comply with the Code as any breach may be considered by an employment tribunal for relevant cases.

Acas has also published new detailed guidance to accompany the Code, which provides practical examples for employers and employees on flexible working requests.

The new Code and guidance can be seen at: www.acas.org.uk/flexibleworking

UK Government cracks down on controversial ‘fire and rehire’ tactics

  • UK Government acts against controversial dismissal tactics through a new statutory Code of Practice.
  • Employment tribunals will have the power to apply an uplift of up to 25 percent of an employee’s compensation if an employer unreasonably fails to comply with the code.
  • Code protects workers’ rights whilst respecting business flexibility.

Action against unscrupulous employers to tackle the use of controversial ‘fire and rehire’ practices have been rolled out by the Westminster Government.

Dismissal and re-engagement, also known as ‘fire and rehire’, refers to when an employer fires an employee and offers them a new contract on new, often less favourable terms.

The Government has been clear that it firmly opposes this practice being used as a negotiating tactic. Today, a new statutory Code of Practice has been published making clear how employers must behave in this area. 

This new Code of Practice shows the Government is going a step further to protect workers across the country. This will help to preserve security and opportunity for those in work, as part of our plan to grow the economy.

Business Minister Kevin Hollinrake said: “Our new Code will crack down on employers mistreating employees and sets out how they should behave when changing an employee’s contract.

“This announcement shows we are taking action to tackle fire and re-hire practices by balancing protections for workers with business flexibility”.

In future the courts, and employment tribunals, will take the Code into account when considering relevant cases. This will include on unfair dismissal claims where the employer should have followed the Code.

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Employment tribunals will have the power to apply an uplift of up to 25 percent of an employee’s compensation if an employer unreasonably fails to comply with the Code.

The new Code clarifies how employers should behave when seeking to change employees’ terms and conditions, aiming to ensure employees are properly consulted and treated fairly.

Employers will now also need to explore alternatives to dismissal and re-engagement and have meaningful discussions with employees or trade unions to reach an agreed outcome.

The Code makes it clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms. They should also not raise the prospect of dismissal unreasonably early or threaten dismissal where it is not envisaged.

Acas Chief Executive Susan Clews said:Fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations. Employers should focus on maintaining good employment relations to reach agreement with staff if they are thinking about making changes to their contracts.

“Acas offers impartial advice on employment rights and obligations, and has expertise in helping parties to maintain good industrial relations and resolving disputes where they arise.

“The Government’s new draft Code is clear that employers should contact Acas for advice before they raise the prospect of fire and rehire with employees.”

Principal Policy Advisor at Institute of Directors, Alexandra Hall-Chen said: “The publication of this Code of Practice provides employers with welcome clarity and practical guidance.

“The Code rightly places good industrial relations at its core and represents an effective means of balancing worker protections with labour market flexibility.”

Head of Public Policy at CIPD, Ben Willmott said:The Code promotes good practice, making clear employers should always seek to agree any changes to terms and conditions with employees and that ‘fire and rehire’ should only be used as an absolute last resort.

“It highlights the importance of early and meaningful consultation with employees to maximise the chances of finding alternative solutions which can lead to agreement over proposed changes.

“It also emphasises that Acas has a key role to play and should be contacted by an employer for advice before it raises the prospect of fire and rehire with the workforce.”

The Government previously asked Acas to produce guidance for employers on fire and rehire practices, which was published in 2021.

The TUC says the guidance does not go far enough: ‘Government’s code of practice on fire and rehire lacks bite.

“It will not deter bad employers like P&O from treating staff like disposable labour. We need far more robust legislation to protect people at work.

“Labour’s New Deal for Working People would be the biggest upgrade in workers’ rights in a generation and end fire and rehire.”

Acas publishes advice to help employers avoid fire and rehire practices

Workplace expert, Acas, published evidence on the use of fire and rehire practices at work in June.

In response, the Government asked Acas to produce guidance to help employers explore all other options first before considering fire and rehire to change employee contracts.

This new advice has been published today and can help employers maintain good employment relations and reach agreement with staff if they are thinking about making changes to their contracts.

Acas Chief Executive, Susan Clews, said: “Our new advice is clear that fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations.

“Employers should thoroughly explore all other options first and make every effort to reach agreement with staff on any contract changes.

“Organisations that consult with their workforce in a genuine and meaningful way about proposed changes can help prevent conflict at work and stay within the law.”

Acas advice is that organisations that are considering contract changes should fully consult with all affected staff and their representatives in a genuine and meaningful way.

Effective consultation can help maintain good workplace relations as it allows staff to understand the reasons behind proposed changes and provides them with an opportunity to give their views. This can help to build trust and find a solution that works for everyone.

Tensions can arise if employees feel that they have not had the opportunity to inform decisions around proposals or do not support the changes. This can result in staff feeling less committed and can impact an organisation’s performance.

If both sides are finding it difficult to reach an agreement then Acas advice includes tips on how to:

  • keep discussions constructive;
  • explore alternative options to reach a compromise; and
  • stay focused on trying to reach consensus.  

Acas advises that the practice of fire and rehire is an extreme step that can damage staff morale, productivity, working relations and can also lead to industrial action.

Other risks for employers in using fire and rehire practices can include:

  • making it harder for both sides to reach a negotiated solution if employees feel ‘threatened’ by an employer
  • expensive legal claims from staff who feel that they have been unfairly dismissed or discriminated against;
  • reputational damage, which can make it difficult for an organisation to attract new employees;
  • immediate and long-lasting damage to trust with staff; and
  • losing valued people because they do not accept the offer of a new contract, or staff leaving later due to unhappiness over the change or the way it was made.

Acas’s full advice is available at: http://www.acas.org.uk/changecontract

Acas: Employee mental health support has got better since the start of the pandemic

New research by Acas has found that over a third (36%) of British employers have seen their mental health support improve since the start of the coronavirus (COVID-19) pandemic.

Acas commissioned YouGov to ask businesses in Britain about whether they had seen a change to employee mental health and wellbeing support in their organisation since the start of the pandemic. The poll found that:

  • Over a third (36%) said it had got better;
  • Nearly one in ten (9%) said it had got worse;
  • Half (50%) reported it as staying the same; and
  • 6% of employers did not know.

Acas Chief Executive, Susan Clews, said: “The pandemic has been a challenging period for everyone and it’s great to see that over a third of bosses have managed to improve their organisation’s mental health support for their staff.

“However, nearly one in ten employers have seen this support deteriorate so it is important for businesses to invest in the wellbeing of their workers as they open up again.

“Acas has good advice and training on how to support and manage mental health and wellbeing at work.”

Acas advice for employers on managing mental health during COVID-19 includes:

  • Be approachable, available and encourage team members to talk to you if they’re having problems;
  • Keep in regular contact with your team to check how they are coping;
  • Be understanding towards the concerns and needs of your staff while they work in new or unexpected ways. For example, working from home or managing childcare while working;
  • Address any individual communication preferences such as asking team members if they prefer to talk over the phone, through video meetings or by email; and
  • Look after your own mental health and get support if you feel under more pressure than usual. This support could be a colleague at work, a mental health network or a counsellor.

For the full Acas advice, please see: www.acas.org.uk/coronavirus-mental-health 

New study reveals one in four employers are not giving staff paid time off to get COVID vaccinations

New research by Acas has found that a quarter of British employers have not been giving their staff paid time off for COVID-19 vaccinations and have no plans to allow it.

Acas commissioned YouGov to ask businesses in Britain about whether they would be giving staff paid time for COVID vaccination appointments. The poll found that:

  • Six out of ten (59%) have been giving staff paid time off;
  • 4% have not been doing it but plan to in the future; and
  • 18% did not know.

Acas advice is that employers should support staff to get the vaccine once it is offered to them. This support could include ensuring employees have paid time off for COVID vaccine reasons.

Susan Clews, Acas Chief Executive, said: “The vaccine rollout programme has gone well and our survey reveals that most employers have allowed staff paid time off to get the jab but a quarter have not.

“Our study also reveals that a similar number of bosses have not paid full company sick pay to staff who have been unable to work due to side effects from the vaccine.

“It’s in businesses best interests to have a vaccine policy that supports staff to take time off as fully vaccinated workers are less likely to need longer periods of time off work to recover from COVID-19.”

The poll also asked businesses about whether they would be paying full company sick pay to staff who are off sick with COVID vaccine side effects.

It found that:

  • A quarter (26%) had not been paying full company sick pay and had no plans to change;
  • Half (50%) were already paying full sick pay;
  • 6% have not been doing it but plan to in the future; and
  • 12% did not know.

To support staff to get the vaccine, Acas advice is that employers may want to consider paid time off for vaccination appointments and paying staff their usual rate of pay if they are off sick with vaccine side effects.

Some organisations may have a review or ‘trigger’ point to keep track of sickness absence for their staff. Acas advice is that employers could consider not counting vaccine-related time off sick as part of this absence record system.

For Acas’s full advice, please see: www.acas.org.uk/coronavirusvaccine

Acas urges workers to speak to their bosses about taking holidays

4 in 10 report taking less time off during pandemic

New research by Acas has found that around 4 in 10 British employees (39%) have taken less paid time off work during the pandemic compared to before it started.

Acas commissioned YouGov to ask British employees workers about how much annual leave or paid time off they had taken since the start of the pandemic when compared to previous years. The poll also found that the results varied depending on the size of the organisation:

Acas advice is that it is important for people to take time off to get rest, to keep both physically and mentally healthy and to use their holiday entitlement within their current leave year where they can.

Susan Clews, Acas Chief Executive, said: “Our poll findings are unsurprising as many workers may have taken advantage of a new law introduced last year, which allows them to carry over most of their paid time off into this year.

“Whilst the easing of pandemic restrictions is good news for many businesses, many staff will be keen to use up the leave they have saved up to take advantage of the summer season.

“Acas advice is for employees to agree any holiday plans with their managers and keep them updated on any new COVID developments that could impact work such as travel quarantine or being asked to self-isolate.”

Acas has advice for employers and employees on taking leave, what the rules are and what has changed as well as information on what to do if you need to self-isolate when returning from abroad.

In 2020, the Government introduced a law allowing employees and workers to carry over up to four weeks statutory paid holiday into their next two holiday leave years. This law applies for any holiday that staff do not take due to COVID-19.

Acas advice on taking paid time off includes:

  • Workers should try and make requests for paid holiday throughout their holiday year;
  • If holiday plans suddenly change due to COVID-19 then employees should get in touch with their boss to agree alternative options for time off; and
  • Get any time off requests in as soon as possible as employers need to plan staff cover for their businesses and are unlikely to agree staff all taking holiday at the same time.

It’s important to check the latest Government guidance before and after travelling:

  • People who need to self-isolate should not leave their home to go to work but can work from home if it’s agreed with their employer;
  • If an employee cannot do their job from home, they should talk to their employer to agree what type of leave to use;
  • Employees and workers are not entitled to Statutory Sick Pay (SSP) if they’re self-isolating after travel abroad and cannot work from home. But an employer can choose to pay them sick pay at the same rate as SSP or a higher rate if they want to.

For the full Acas advice on paid time off please visit, https://www.acas.org.uk/holiday-sickness-leave and for self isolation please visit, https://www.acas.org.uk/coronavirus/self-isolation-and-sick-pay

Half of employers expect more flexible working requests from staff after pandemic

A new survey from Acas has found that half of employers in Great Britain expect an increase in demand for flexible forms of working from employees after the country comes out of the Coronavirus (COVID-19) pandemic.

Acas commissioned YouGov to ask British businesses about changes to working practices that they are expecting once the COVID-19 pandemic is over compared to before the pandemic. The poll found that:

  • Over half of employers (55%) expect an increase in staff working from home or remotely part of the week; and
  • Nearly half of employers (49%) expect an increase in staff working from home or remotely all week.

Acas has published new advice on hybrid working that can help employers introduce it and manage requests from staff who wish to split their time between working remotely and in their employer’s workplace.

Acas Chief Executive, Susan Clews, said: “The pandemic has greatly impacted working life and it’s unsurprising that many employers and their staff have seen the benefits of flexible working during this difficult period.

“Hybrid working existed before Covid and our survey reveals that more than half of employers in Britain expect this type of flexible working to increase once we come out of the pandemic.

“Our new advice can help employers look at the potential benefits of hybrid working, consider whether it is suitable for their workplace, and fairly manage any staff requests.”

Acas advice is that hybrid working can help businesses attract and retain staff as well as increase staff productivity as the flexibility allows them to balance work and personal responsibilities.

Employees can benefit by saving costs and the time spent travelling to work as well as enjoying a better work life balance.

Acas’s advice for employers includes:

  • Consult widely with staff or their representatives about introducing hybrid working and discuss practical considerations such as regular communication, technology, performance management and health and safety;
  • A company hybrid working policy could look at which roles are eligible, how someone can request it and any principles such as allowing remote working for a maximum number of days a week;
  • Ensure staff who are working remotely are not excluded and have access to the same opportunities as those in the workplace such as team building activities, training and development;  
  • Decisions around whether to approve a request for hybrid working should be fair, transparent and other forms of flexible working that could work as possible alternatives can be discussed with employees;
  • Think about training line managers and staff to help them prepare for and manage hybrid working; and
  • Consider a trial period to see if it works and if any further adjustments to arrangements are needed.

For Acas’s full advice on hybrid working, please see: www.acas.org.uk/hybrid-working

Acas insight into Fire and Rehire

The Department for Business, Energy and Industrial Strategy (BEIS) asked Acas to conduct an evidence gathering exercise to learn more about the use of fire and rehire practices.

This was published yesterday and contains views from a range of participants about their experiences on the use of fire and rehire.

Acas Chief Executive, Susan Clews, said: “Our findings provide valuable insight into the use of fire and rehire practices. We gathered a range of views from professional bodies with workplace expertise, including trade unions and employer organisations.

“Some of the participants told us about the business challenges of COVID-19 and how the use of fire and rehire can help reduce redundancies. Others believe that the practice is unacceptable, and that the pandemic has been used as a ‘smokescreen’ to diminish workers’ terms and conditions.

“There was also evidence that fire and rehire practices have been used for many years and predate the pandemic. We will take up the government’s request to produce further guidance that encourages good workplace practices when negotiating changes to staff contracts.”

Read the findings in ‘Dismissal and re-engagement (fire-and-rehire): a fact-finding exercise‘.

Transport chaos looms as Lothian Buses set for strike action

Lothian Buses staff have voted to take strike action. Unite, their trade union, had recommended acceptance of the deal but unless a last ditch agreement can be found strike act will begin at 03:00am on Friday morning – the first day of the Edinburgh Fringe. Continue reading Transport chaos looms as Lothian Buses set for strike action

£15.6 million underpayment identified for workers on the minimum wage

More than 200,000 workers who were paid less than the minimum wage have been identified following a record government clampdown.

  • Record £15.6 million of underpayment identified for more than 200,000 workers
  • Employers fined unprecedented £14 million for not meeting legal obligations
  • More than 600 employers named in 2017/18 as part of ‘naming’ rounds
  • Ramped up efforts by HMRC to crackdown on underpayment and boost compliance

Her Majesty’s Revenue and Customs (HMRC) achieved record enforcement results this year, identifying £15.6million of underpayments.

The number of workers identified as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force. In every case, the government instructs employers to repay their workers and enforces the return of the missing cash.

The rise in cases follows increased efforts by HMRC to promote compliance and improve employer awareness of the minimum wage.

Business Minister Kelly Tolhurst, said: “We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to.

“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.”

Over the past year, 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
The year also set a new record for penalties issued by the government, with £14 million in fines issued to employers.

More than 600 employers who were found to have underpaid their workers the minimum wage were named in 2017/18. This is the largest number in any single year since the scheme began in 2014.

This year, the social care, retail, commercial warehousing and gig economy sectors have been prioritised by HMRC for enforcement of the minimum wage. This is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with National Minimum Wage is believed to be more widespread.

Penny Ciniewicz, HMRC Director General of Customer Compliance, said:
“HMRC is committed to ensuring that workers receive the wages they are legally entitled to, irrespective of their employer’s size or business sector, and today’s figures highlight our success over the last year.

“If anyone thinks they are not receiving at least the minimum wage, they can contact the Acas helpline on 0300 123 1100 in confidence or submit a query online through our complaints form.”

Low Pay Commission Chairman Bryan Sanderson said: “All workers are entitled to be paid at least the minimum wage, so it is good to see increased focus on enforcement bearing fruit and securing more arrears for more workers.

“Awareness of the minimum wage is vital for workers and employers alike, and strong enforcement is critical to its success.”

Funding for minimum wage enforcement has reached record levels, rising to £26.3 million in 2018/19 from £20 million in 2016/17.

For more information about your pay, or if you think you might be being underpaid, get advice and guidance at www.gov.uk/checkyourpay. Workers can also seek advice from workplace experts Acas.