The ABC of employment law developments in 2017 for CIOs

Employment lawyer Katee Dias's two-minute employment law briefing

This year is set to be as busy as any other in terms of employment law developments in the UK. Here, we round up the ABC of forthcoming legal and other developments potentially affecting IT departments - and much more besides.

Apprenticeship Levy

For employers that have an annual wage bill of more than £3 million, a new 0.5 per cent levy will be payable from April 2017. These additional funds are intended to be used by the government to contribute to the costs of apprenticeship training. Employers can claim back the levy they have paid if they use it for training apprentices. There will even be some government top-ups available, too - an additional ten pence paid by the government for every £1 paid by the employer. If you are hit by the new levy, which some consider to be a form of taxation, consider whether apprentices can be used in your business so that you can recoup some of this additional cost.

Brexit

At some point in the future the UK looks likely to leave the European Union. How, when and what effect this will have on employment law remains to be seen, but with Article 50 likely to be called before the end of March it is an area that all employers will need to keep an eye on. Radical reforms early on seem unlikely, but there could be some tinkering around the edges, especially in view of some unpopular European case law decisions.

Corporate directors

At the moment, a director of a company can be another company. However, there are plans to change this so that only individuals can be named as a board director. This change was expected to be brought in during October 2016, and while it did not happen them we expect it to be imminently brought in. Companies will want to check their corporate structures to ensure they do not need to make any new appointments as a result of this expected change.

Employment status in the 'gig' economy

Following the high-profile case involving Uber drivers, some individuals previously considered "self-employed" will now have to be re-categorised as "workers". This is an important distinction as it means that they will benefit from things like holiday rights and minimum wage entitlements. Although the judgement is under appeal, HMRC is (apparently) making a determined effort to investigate employment status issues because the tax treatment is different for self-employed people and workers. So examine the true legal status of any arrangements that you have in place with contractors to avoid getting caught in the dragnet - or at least be prepared, just in case.

Employment tribunal fees

Fees were introduced in 2013 for all Employment Tribunal claims. However, the lawfulness of this was challenged by the union Unison, with the latest hearing in the long-saga set to be heard in March 2017. Will the government have to do a U-turn on the introduction of the fees?

Gender pay gap reporting

New legislation concerning gender pay data is expected to come into force in April 2017. Organisations employing more than 250 staff will be required to report on the difference between male and female pay levels (including bonuses) in their businesses, with the first report due by April 2018.

Grandparental leave

Mothers and their partners can share parental leave and pay under current legislation to care for their child. The government has also confirmed plans to extend this right to shared leave and pay to include working grandparents too. This is expected to be implemented by 2018, so details should emerge this year. Given the relatively small adoption by men taking family leave it will be interesting to see whether this right proves more popular with grandparents.

Minimum wage

From 1 April 2017, the minimum wage rates will increase. Staff aged 25 and over will need to be paid a minimum of £7.50 per hour (up from £7.20). In addition, the national minimum wage will now be known as the "national living wage". For employees aged 21 to 24 (inclusive), the national minimum wage will increase to £7.05 per hour (up from £6.95) and for those aged 18 to 20 (inclusive), it will increase from £5.55 to £5.60 per hour. For younger workers - 16 and 17 years olds - it will be £4.05 per hour (up from £4.00) and for apprentices, £3.50 (up from £3.40).

Religious attire

Can you ban your employees from wearing a headscarf or other accoutrement related to someone's religion in the workplace? There has been conflicting case law to date as to whether this could be direct discrimination on grounds of their religious belief, so we await a conclusion to this issue.

Whistleblowing

The code of practice for employers on whistleblowing is being reviewed by the Department for Business, Energy and Industrial Strategy (formerly known as the Department for Business, Innovation and Skills or "BIS"). It is expected that a revised code will be published during 2017.

To conclude…

Employment law continues to move fast. Hopefully the above serves as a useful pointer of the key things to look out for during this coming year.

Katee Dias is a senior solicitor in the employment team at City law firm Goodman Derrick LLP.