HR & EMPLOYMENT LAW

Jackie Le Poidevin, Editor-in-Chief, HR Adviser

Email: hr@agorabusiness.co.uk

Discover the Government’s Plan to Double the Limit for Bringing Tribunal Claims

Less than 2 months after publishing its Employment Rights Bill, the Government has announced a significant addition to the legislation. As part of a 53-page paper setting out otherwise fairly minor amendments to the Bill, the Government has said it intends to double the time limit for individuals to bring employment tribunal claims from 3 to 6 months. I look at this proposal and how you can prepare for it taking effect.

What’s Happening?

Currently, when someone wants to bring a claim in the employment tribunal, they usually have to inform Acas within 3 months of their dismissal or the act they’re complaining about. They will then be offered the chance to try and settle the dispute without going to tribunal by using Acas’s free early conciliation service. If conciliation fails or the employee doesn’t want to take part, they will have at least 1 month left to bring their claim.

There have been calls for a few years to make the 3-month deadline longer and Labour promised to do this in its election manifesto. The Employment Rights Bill didn’t include any mention of tribunal time limits but the accompanying ‘Next Steps’ document stated that the Government planned to extend them by adding an amendment to the bill.

The new paper confirms that this amendment has been tabled. If it’s passed (and there’s no reason to think it won’t be, given the Government’s large majority), this would give complainants up to 6 months to contact Acas about a planned tribunal claim.

What Does this Mean for You?

This proposal has been made due to concerns that, at the moment, an aggrieved employee may run out of time to bring a claim. Sometimes, 3 months may not be long enough to work through your grievance procedure and for the employee to obtain legal advice and decide whether they really want to go as far as resigning and issuing a claim. Or it may be difficult for an employee with a serious health condition or who has recently had a baby to submit a claim in time.

So a longer time limit could remove those barriers and lead to more claims. It could also mean even more delays in the overstretched tribunal system.

What to Do if this Change Goes Ahead

We don’t know when this reform might happen. However, if and when it does, it will be important to:

  • Use those extra 3 months to try and resolve any dispute internally. Of course, an employee can still lodge a claim earlier if they feel there’s no hope of a resolution. However, you will potentially have twice as long to build bridges or perhaps reach a settlement, so you should use that time well.
  • Review your retention periods for HR records. If you dispose of things like disciplinary records and appraisal notes too soon after an employee’s departure – or you lose track of them – you then won’t have the evidence you need to defend the business in the event of a tribunal claim.

      HEALTH & SAFETY

      Emma Lampka, Editorial Board Member, Health & Safety Adviser and Risk Assessment & Compliance

      Email: editorial@risk-compliance.co.uk

      7 Tips to Ensure a Safe Workplace During the Festive Season

      As the holiday season approaches, workplace safety should remain a priority. Employers must ensure that Christmas decorations, trees and lights are safely installed to prevent fire hazards and accidents. By following key steps such as proper placement, securing equipment and maintaining clear exits, you can create a festive yet safe environment for employees, reducing risks and ensuring compliance with health and safety regulations.

      Employers have a duty to provide a safe place of work under the Workplace (Health, Safety and Welfare) Regulations 1992, specifically under Reg 5. ‘The workplace and the equipment, devices and systems to which this regulation applies shall be maintained (including cleaned as appropriate) in an efficient state, in efficient working order and in good repair’.

      Follow these Key Steps to Minimise Risk

      1. Christmas trees: if you’re providing a Christmas tree at work, ensure there’s enough space for it to be located at a place which does not block fire exits or access and egress to the premises. Consider any manual handling issues when carrying the tree to its location. Ensure that the tree is secure to prevent it from falling. If your Christmas tree is a real tree, water it regularly to prevent it becoming dry and a fire hazard.
      2. Christmas tree lights and other lights: ensure that cables do not cause a possible trip hazard. They should be secured and arranged away from foot traffic areas. Do not rely on fairy lights as a main source of lighting in the workplace – ensure that there’s still sufficient lighting for employees to work safely and ensure they are switched off at night or when unattended
      3. Christmas decorations: check that decorations are not on or near any heaters. If your employees are bringing in their own electrically powered Christmas decorations, they should display the British Safety Standard sign, be tested beforehand and checked for any damage before use. Ensure that decorations do not interfere with electrical fittings, such as lights and heaters, and ensure they do not obstruct escape routes or exits.
      4. Putting up decorations: when hanging Christmas decorations consider the risks of working at height. If ladders or other equipment is being used, ensure they’re suitable for the activity and are in good condition. Employees should not stand on chairs or desks in order to put decorations up.
      5. Candles: these should not be brought to the workplace to be used as a decoration. It may seem obvious but these can cause a significant fire risk.
      6. Electricity: do not overload the electrical circuits and, where possible, use a Residual Current Device for additional protection.
      7. Parties: check that staff have a designated driver or other safe way to get home if they are planning on drinking alcohol.

          PAYROLL

          Sarah Bradford, Editor-in-Chief, Pay & Benefits Adviser
          Email: pab@agorabusiness.co.uk

          How to Pay Employees Early at Christmas

          An employer may pay their employees early at Christmas for a number of reasons, for example, as a goodwill gesture to help employees meet expenses over the holiday period or because the business shuts over the festive period and the payroll team are not working on the usual pay day. If you do pay your employees early this December, it’s important that you understand how to report the payment to HMRC and that you follow the rules.

          Permanent Easement

          HMRC operate a permanent easement for employers who pay their employees early at Christmas. Under the terms of the easement, the employer should use the employee’s normal payment date for PAYE purposes, rather than the date on which the payment is actually made.

          Consequently, the payment date which should be entered on the Full Payment Submission (FPS) must be the normal pay day not the date on which the employee was actually paid. This will also mean that you will have more time to submit you FPS as it will not be treated as late if it is submitted before the usual pay day, even if this is after the actual payment date – you do not need to submit it on or before the actual payment date where the payment is made early at Christmas.

          The reason for this easement is to ensure that employees on Universal Credit or receiving other income-based benefits do not lose their benefits if two payments are made in one assessment period as a result of the employee being paid early in December. If the payment is reported when it is actually made, rather than on the usual pay day, an employee’s current and future benefit entitlement may be affected.

          How to Treat Monthly-paid Employees

          The position for monthly employees is generally straightforward as if they are paid early, there will generally only be one payment in the month. The usual pay day is reported on the FPS rather than the actual day on which they are paid.

          For example, if employees are normally paid on the 30th the month, the usual pay day for December would be Monday 30th December 2024 . However, if the business is shut for Christmas from 20 December 2024 to 2 January 2025 and employees are instead paid on Friday 20th December 2024, the ‘payment date’ on the FPS is 30 December 2024, not 20 December 2024. As long as the FPS is submitted on or before 30 December 2024, HMRC will treat it as being filed on time, even if it was filed after the actual payment date of 20 December 2024.

          How to Treat Weekly-paid Employees

          The position is potentially more complicated for weekly paid employees as if they are paid early at Christmas, they may be paid a normal regular weekly payment and an early payment on the same day. If this happens, the payment made on the normal date is treated as normal and reported on the FPS for that week. The payment for the following week which is made early (and on the same day) should be reported as if it had been paid on the usual date and must be reported on a separate FPS.

          For example, if weekly-paid employees are paid on a Friday and the payment for 27 December 2024 is made a week early (on 20 December 2024) because of Christmas, the employee will receive 2 weeks’ payments on 20 December 2024. The actual payment due on 20 December 2024 should be treated as paid on that date as a week 37 payment and reported on the FPS using the normal pay day of 20 December 2024. The FPS for that payment should reach HMRC on or before 20 December 2024. As regards the payment for 27 December made early on 20 December 2024, the usual payment date of 27 December 2024 (week 38) should be used rather than the actual payment date of 20 December 2024 and the FPS for that payment should be submitted on or before 27 December 2024. The payments should be treated as two separate payments rather than as a single payment made on 20 December 2024.

          National Insurance

          The usual pay day rather than the normal pay day should be used for National Insurance purposes, too.