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Analysing Inheritance Tax (IHT) changes on the Autumn 2024 Budget

IHT is a tax charged on the value of your estate (e.g. property, money and possessions) when you die, commonly referred to as inheritance tax.

The Autumn Budget 2024 announced several IHT changes that will have an impact on private individuals including business owners, farmers and trusts. We set out below a summary of the key announcement that could impact your personal finances and investments.     

  • Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB)

The NRB is an IHT free allowance available to all individuals on death and the RNRB is an additional IHT free allowance that is available to individuals who leave their home to lineal descendants on death.  

The current £325,000 NRB and £175,000 RNRB have both been frozen until 5 April 2030. The ability to transfer the reliefs between spouses / civil partners also remains unchanged.

  • Lifetime Gifts

The rules regarding lifetime gifting, including the 7-year rule for lifetime gifts to fall outside an estate of IHT purposes and the exemption for gifts out of income, remain unchanged. This makes strategic gifting important to minimize inheritance tax liabilities.

  • Pensions

Most unused pension funds and death benefits are to become subject to IHT from 6 April 2027, adding them to the inheritance tax considerations.

  • Business Property Relief (BPR) and Agricultural Property Relief (APR)

BPR and APR are types of relief that can reduce the amount of IHT that is paid on agricultural and business assets held on death. For deaths from 6 April 2026:

  • The current full 100% relief from IHT will be restricted to the first £1 million per individual of combined BPR or APR qualifying assets, with a 50% rate of relief (an effective tax rate of 20%) applying thereafter, with the IHT being able to be paid by instalments over 10 years interest free.
  • The £1 million allowance is not transferable between spouses / civil partners as is the case with the NRB and RNRB. However, it does means that when combined with the NRB and RNRB a married couple / civil partners are able to leave business and / or a farm (including farmhouse) of a value up to £3 million to their child or children free of IHT.
  • Investments not listed on markets of recognised stock exchanges, including the Alternative Investment Market (AIM), will no longer benefit from full relief with the 50% rate applying to the entire sum.

Trusts

The government will be publishing a technical consultation in early 2025 on how trusts holding APR or BPR assets will be impacted, although it has already been indicated there will be a £1 million allowance available to trustees. This consultation will address potential inheritance tax implications.

Capital Gains Tax (CGT)

In addition to the IHT announcements, the following changes to how CGT, which is a tax charged on the profits made when you sell or dispose of assets that have increased in value since they were acquired by you, should be noted:

  • On the 30 October 2024 CGT increased to 18% for lower rate taxpayers and 24% for higher rate taxpayers.
  • The CGT rates for residential property has remained at 18% for lower rate taxpayers and 24% for higher rate taxpayers.
  • The CGT rate for Business Asset Disposal Relief and Investors Relief has increased to 14% for disposals made on or after 6 April 2025, and to 18% for disposals made on or after 6 April 2026.

If you would like to speak with one our solicitors dealing with Wills & Lifetime Planning, please contact our team on 01792 776 776.

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Common Challenges in Construction Projects and How to Avoid

Construction projects are complex, multifaceted and prone to a variety of challenges. In the UK these challenges – which range from project delays to budget issues – can significantly impact the success and smooth running of a project. By understanding these issues, you can devise and implement strategies to mitigate them. So, to help construction professionals get the most out of their projects, this article explores some of the most common challenges encountered during construction projects and offers practical advice on how to avoid them.

Delays in Project Timelines

Delays are perhaps the most common problem in construction projects. They can be caused by a myriad of factors, including adverse weather conditions, delays in receiving materials, unexpected site conditions, and issues with subcontractors or the workforce.

Strategies to Avoid Delays

There are a few different strategies that you can employ to remedy delays in your project timelines. The first approach is to plan ahead of time for these unforeseen issues – which is easier said than done. However, by creating a detailed and realistic project timeline that includes buffer times for unforeseen issues, you can give your project a better chance to adapt to change.

You can attempt to handle timeline delays by establishing a strong contractor agreement with all subcontractors. This will ensure that their work is completed when required – or they may be liable for penalties. This can only work with regular monitoring, though, so make sure your project has strict monitoring procedures in place to track progress against your timeline.

Budgeting Problems

Budget overruns can jeopardise the financial stability of a construction project. Causes include underestimation of initial costs, changes in project scope, and unexpected increases in material costs.

Strategies to Manage Budget

Much like with project delays, budgeting problems can be addressed in the planning stage of your construction project. Try to create as accurate a cost estimation as possible (or consider using an expert estimator). This will support a more transparent and realistic budget that incorporates all potential costs.

Another way to handle budgeting problems is to create a contingency fund. This might be somewhere in the region of 10 to 20 % and should cover any unexpected costs without hampering the project’s budget.

Managing Client Expectations

Managing the expectations of clients and stakeholders is very important for the successful delivery of a project. Misalignments between client expectations and project realities can lead to dissatisfaction and conflicts.

Strategies for Effective Communication

One of the best ways to manage client expectations is to establish clear, consistent communication from the outset of the project. During these discussions, you should emphasise what will be achievable, realistic, and within budget. Also, keep your client in the picture by providing regular updates about the work being carried out. This transparency can give the client time to interject or sign off on work, helping to avoid issues with client expectations.

Regulatory Compliance and Safety Issues

Construction projects in the UK must adhere to rigorous safety and building regulations. Non-compliance can lead to legal issues, safety hazards, and project shutdowns.

Strategies for Ensuring Compliance

Enforcing compliance and safety throughout the project can be challenging, but it is massively important to get right. You’ll want to stay up-to-date with the latest Building Regulations as well as legislation around sustainability and health and safety.

To provide your construction project with even more security, it might be wise to enlist the help of legal professionals. Our team at Morgan La Roche are legal experts when it comes to construction regulations and compliance, and we can ensure your project is fully compliant throughout.

Supply Chain Disruptions

Supply chain issues, such as delays in the delivery of materials or equipment, can halt construction progress and lead to project delays. When your project requires a piece of equipment that is unavailable, the work can stall for quite some time.

Strategies to Mitigate Supply Chain Risks

If you’re aware of any potential supply chain risks, then strengthening your supplier network is the best way to mitigate these risks. Try to nurture good working relationships with multiple suppliers to avoid dependency on a single source. If something goes wrong with your primary supplier, you will have plenty more to choose from with this approach.

One useful option is to order your materials and equipment well in advance. This will give the supplier sufficient time to have everything you need ready to go. Ideally, you should be using locally sourced goods as this is both more eco-friendly and potentially faster for you.

Avoid These Challenges for a Successful Construction Project

Construction projects are naturally prone to challenges, but with careful planning, proactive management, and effective communication, many of these issues can be mitigated or even avoided altogether. By understanding the common pitfalls and implementing the strategies outlined above, construction professionals can enhance their chances of delivering successful projects on time and within budget.

If you would like further legal guidance for your construction project, then our team at Morgan La Roche are here to help. Please contact us today to discuss your needs further.

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Top Things to Know Before Starting a Construction Project

Embarking on a construction project can be an exciting endeavour, whether you are a homeowner looking to extend your property or a business preparing for expansion. However, it also comes with its challenges and requires meticulous planning and understanding of the regulatory landscape in the UK. This article will guide you through the essential aspects you should consider before starting your project.

Understand the Planning Permissions and Regulations

In the UK, obtaining the right planning permission is essential before you commence any construction project. Local authorities have specific regulations designed to control development, which include considerations for the appearance of buildings, the impact on the environment, and local infrastructure. For example, if you are planning to add an extension to a property, you might need to apply for permission if the changes significantly alter the look or use of the building.

It’s also important to be aware of the latest Building Regulations, which are minimum standards for design, construction and alterations to virtually every building. They are developed by the UK Government and ensure that any construction project meets safety, health, environmental, and accessibility standards. Compliance with these regulations is a legal requirement.

Choosing the Right Contractor

Selecting the right contractor is one of the most critical decisions you will make when it comes to a successful project. The contractor should have the expertise required to complete your project efficiently and also be someone you can trust and communicate with openly. Ensure that they have a good track record and can provide references. It is also wise to check if they are registered with recognised trade bodies, such as the Federation of Master Builders (FMB).

Furthermore, always verify that the contractor has the necessary insurance cover, such as public liability insurance and employers’ liability insurance, to protect both workers and your property in case of accidents during the construction phase.

Budgeting and Cost Management

Effective budget management is key in avoiding cost overruns, which are a common issue in construction projects. Begin by obtaining detailed quotes from several contractors to ensure competitive pricing and clarity on what is included in the price. Be sure to factor in additional costs like planning permission fees, potential legal costs, and contingency funds for unforeseen expenses.

Having a clear contract in place with your contractor regarding the payment schedule can also prevent disputes. Typically, payments are made in instalments at different stages of the project, with a final payment due upon completion.

Timeline and Project Management

Understanding the timeline of your construction project is another core aspect of a successful construction project. Delays can be costly and frustrating, but a good timeline will account for unforeseen setbacks. Ensure your contractor provides a realistic timeline with milestones and completion dates. Regular communication and on-site meetings can help keep everything on track and allow you to make adjustments as needed.

Project management tools or hiring a professional project manager can also be beneficial, particularly for larger projects. They can help coordinate different aspects of the project, including managing timelines, resources, and communication between various parties involved.

Sustainability and Environmental Considerations

Sustainability should be a key consideration in any construction project today. The UK has set ambitious targets to reduce carbon emissions, and incorporating sustainable practices and materials can have significant long-term benefits, including energy savings and a lower carbon footprint.

Consider using materials that are locally sourced, renewable, or have a low environmental impact. Technologies such as solar panels, energy-efficient windows, and eco-friendly insulation materials can also enhance the sustainability of your construction project.

Understanding the legal and contractual aspects of a construction project is vital. Ensure that you have a contract in place that clearly outlines the scope of work, the cost, and the responsibilities of all parties involved. It is advisable to consult a solicitor experienced in property and construction law (such as one of our team at Morgan La Roche) to review any contracts before you sign them.

Insurance is another major thing to get right; besides the contractor’s insurance, you might also need to consider taking out additional policies such as site insurance and structural warranty, which cover you against defects in the construction.

Preparation is Key to a Successful Construction Project

Starting a construction project in the UK involves several important steps that, if managed correctly, can lead to the successful completion of your project. From understanding the regulatory requirements and selecting the right contractor to manage your budget and timelines effectively, each stage comes with its own set of challenges. Taking the time to plan meticulously and seeking the right advice can help you navigate through these challenges smoothly and ensure that your project is built to your satisfaction, within budget, and on time.

If you would like further legal guidance for your construction project, then please contact our team at Morgan La Roche today.

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EAT Rules Tribunal Overlooked Redeployment Option in Assessing Fairness of Disabled Employee’s Dismissal

In Bugden v Royal Mail Group Ltd [2024] EAT 80, the Employment Appeal Tribunal (EAT) ruled that a tribunal had made a mistake by not considering the possibility of redeployment when assessing the fairness of a disabled employee’s dismissal. However, the tribunal did not make a mistake in failing to consider redeployment as a reasonable adjustment, as this issue had not been argued or included in the list of issues.

The EAT found that the tribunal failed to evaluate whether the employer had considered redeployment as an alternative to dismissal. The employee, who had multiple physical and mental disabilities, was dismissed under an attendance management policy after 32 periods of ill-health absence totalling 297 days over four years. Although the tribunal initially rejected his claims of unfair dismissal and disability discrimination, the EAT upheld his appeal regarding unfair dismissal. The EAT decided that the employer should have considered redeployment before dismissing the employee. The tribunal erred by failing to address this issue when determining whether the dismissal was reasonable, even though it was not raised by the parties. Consequently, the unfair dismissal claim was sent back for reconsideration.

However, the EAT dismissed the appeal regarding the failure to make reasonable adjustments. The tribunal was not wrong for not considering redeployment as a reasonable adjustment, as this argument was not presented at trial or included in the list of issues. Although the employee’s mental health was a contributing factor to his absences, redeployment was not identified as a necessary adjustment by the occupational health reports, the employee himself, or the employer.

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Tribunal Finds That Gender-Critical Employee Faced Discrimination and was Constructively Dismissed

In Adams v Edinburgh Rape Crisis Centre (ETS/4102235/23), an employment tribunal found that an employee had been discriminated against and constructively dismissed due to her gender-critical beliefs.

The tribunal determined that Ms. Adams, who believes biological sex is real and distinct from gender identity, had been supportive of trans inclusion but held that survivors of sexual violence should have a choice about the sex of their support worker. Ms. Adams worked at Edinburgh Rape Crisis Centre (ERCC), which had an occupational requirement of hiring only women and a policy supporting women, trans, and non-binary people. After the appointment of a new CEO, a trans woman without a gender recognition certificate, Ms. Adams grew concerned about ERCC’s stance on gender identity, which conflicted with her beliefs. When a service user questioned the gender of a colleague who had adopted a male name, Ms. Adams suggested responding that the colleague was born female but now identifies as non-binary.

Before an investigation was conducted, the CEO emailed staff, claiming Ms. Adams had humiliated the non-binary colleague, that they would not work together again, and implied Ms. Adams was transphobic. These actions were held to be gross misconduct, and her grievance was dismissed.

The tribunal concluded that Ms. Adams had been harassed, and that these actions also amounted to direct discrimination. Furthermore, the ERCC had indirectly discriminated against her by treating the expression of her gender-critical views as a disciplinary issue. The CEO’s own beliefs played a role in the decision to take disciplinary action. The tribunal found that ERCC had breached the implied term of mutual trust and confidence, resulting in Ms. Adams’ constructive dismissal.

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Office Chairs Filling Up, And Tribunals Are Too…

Employers are increasingly pushing for a return to the office, with some companies advocating for a full five-day workweek, while others set a minimum number of required in-office days. In some law firms, office attendance has even become a performance metric, motivating partners to spend more time at the office.

This has riled employees, resulting in a rise in employment tribunal cases. According to HR consultancy Hamilton Nash, tribunal claims involving remote working increased from 27 cases in 2021 to 47 cases in 2022, compared to just six cases in 2019, before the COVID-19 pandemic. However, employers were thankful after an employment tribunal earlier this year rejected the case of a senior manager who sued the UK Financial Conduct Authority (FCA) because she wanted to work at home full-time.

A survey conducted by KPMG predicts that 63% of UK-based global leaders will have their staff return to office-based work by 2026.

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Understanding the New Statutory Right to Carer’s Leave

As of April 6, 2024, employees have a statutory right to unpaid carer’s leave. In light of this change, both the UK government and Acas have released brief guidance to help clarify what carer’s leave entails and how it should be managed in the workplace. Here’s a breakdown of the key points from these updates.

1. Government Overview

The government’s guidance offers a straightforward introduction to the new statutory right. It covers the essentials, including:

  • Eligibility: Which employees are entitled to take carer’s leave.
  • Duration: How much carer’s leave can be taken and under what circumstances.
  • Process: How employees can request carer’s leave and what steps employers should follow.
  • Delays: The situations where an employer may legally delay the taking of carer’s leave.

This basic guide is designed to help employers quickly understand their obligations and implement policies that comply with the new law.

2. Acas Guidance: A Closer Look at Carer’s Leave

In addition to the government’s overview, Acas has provided more detailed guidance, offering further clarity on the statutory right to carer’s leave. Here are some of the key aspects they highlight:

  • Employee Rights During Carer’s Leave: Acas outlines what protections employees maintain while on carer’s leave, ensuring employers understand their duty to safeguard these rights.
  • Flexible Leave Options: Recognizing the variety of work patterns, Acas includes practical examples of how employees might take carer’s leave—whether in blocks or as individual days—based on different working schedules.
  • Notice Requirements: Sets out how much notice employees are required to give when requesting carer’s leave, offering employers a clear guide to managing requests efficiently.
  • Unpaid Leave: While carer’s leave is unpaid by law, Acas suggests that employers could choose to offer pay during this period to provide additional support to their employees.

3. Flexibility and Short-Notice Requests

One of the key takeaways from the Acas guidance is the emphasis on flexibility. Employers are encouraged to be accommodating when it comes to carer’s leave, particularly when employees need to take it at short notice. This flexibility can foster a more supportive work environment and help employees manage their caregiving responsibilities without unnecessary stress or pressure.

4. What Employers Should Do Next

With the statutory right to carer’s leave now in force, it’s crucial for employers to review their existing policies and ensure they are aligned with the new regulations. For help and support, please contact [email protected]

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The 2024 Neurodiversity Index: A Call to Action for Inclusive Workplaces

The City & Guilds Foundation has released its 2024 Neurodiversity Index, highlighting both progress and ongoing challenges in Neuroinclusion. The report shows that more organisations are developing Neuroinclusion strategies.

Despite these positive changes, the report reveals significant hurdles remain. Half of neurodivergent workers surveyed took time off in 2023 due to challenges related to their neurodivergence. More concerningly, over a third reported receiving no guidance from their employers, and one in five are still waiting for promised adjustments, indicating a gap between policies and their implementation.

The report offers several recommendations to address these issues:

  1. Inclusive Job Descriptions: Companies should create clear, skill-specific job descriptions to make roles more accessible.
  2. Pre-Interview Support: Providing interview questions in advance, as John Lewis now does, helps neurodivergent candidates prepare and reduces anxiety.
  3. Transparent Onboarding: Clear communication during onboarding sets expectations and supports neurodivergent employees from the start.
  4. Workplace Accommodations: Employers should ensure physical, technological, and communication adjustments are in place to support all employees.
  5. Employee Resource Groups (ERGs) and Mentorship: Implementing ERGs, neurodiversity champions, and mentorship programs fosters community and support for neurodivergent staff.
  6. Policy Reviews: Regularly updating workplace policies helps remove barriers and create a truly inclusive environment.
  7. Representation at all Levels: Encouraging neurodivergent representation at all levels within organisations promotes a culture of inclusivity.

While the 2024 report reflects progress, it also underscores the need for continued efforts to create truly inclusive workplaces. By adopting these recommendations, employers can bridge the gap between intent and action, fostering environments where neurodivergent employees are supported and able to thrive.

Latest News

John Lewis Rewrites the Rules

In a bid to make its hiring process more inclusive, John Lewis has taken a fresh approach by publishing job interview questions on its website. This allows candidates to prepare their responses in advance, helping to reduce anxiety, especially for neurodivergent applicants. While the questions are available ahead of time, John Lewis assures that the selection process remains as thorough as ever. During interviews, candidates will be asked follow-up questions to ensure their answers are genuine and well-considered.

This move aims to help candidates feel more confident, allowing them to showcase their true potential without being held back by nerves. The initiative is particularly beneficial for those who thrive with additional preparation time, such as neurodiverse individuals.

This inclusive initiative isn’t unique to John Lewis. The Centre for Digital Public Services, which also provides interview questions in advance, has seen similar positive results. They’ve found that offering candidates this preparation time has not only reduced stress but also made their hiring process more accessible to neurodivergent individuals and those with varied learning styles.

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Supporting Disabled Employees

On April 9, 2024, the UK government released updated guidance for line managers, specifically focused on recruiting, managing, and developing disabled employees. This latest version, crafted in partnership with the Disability Confident scheme and the CIPD (Chartered Institute of Personnel and Development), is designed to provide practical tools and knowledge to managers, enhancing their confidence in supporting disabled workers.

The new guidance comes after the CIPD’s 2023 report – Health and Wellbeing at Work  report. The report highlighted a significant challenge faced by many organisations: managers often lack the knowledge and confidence to effectively manage employees with disabilities or long-term health conditions. With this in mind, the updated guidance is intended to strengthen managers’ ability to foster a more inclusive workplace. By doing so, businesses can expect improvements in team morale and performance, higher employee retention rates, and a reduction in sickness-related absences.

The guidance is comprehensive, covering various stages of the employment journey, including:

  • Legal obligations
  • Inclusive language and behaviour
  • Making reasonable adjustments
  • Recruitment processes
  • Supporting new starters
  • Confidentiality and disclosure
  • Career development
  • Managing sickness absence
  • Retaining talent or supporting an employee’s transition when leaving the organization.

Additionally, the guidance includes specific advice on accommodating disabilities like long COVID and neurodiverse conditions.

This updated guidance underscores the vital role line managers play in fostering inclusive workplaces, ensuring that every employee, regardless of ability, can thrive in their career.

The guidance can be found here: Recruiting, managing and developing disabled people: a practical guide for managers – GOV.UK (www.gov.uk)

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Navigating the New EHRC Guidance: Family Friendly Rights

The Equality and Human Rights Commission (EHRC) has released new guidance aimed at helping employers better understand their responsibilities toward pregnant employees and those entitled to family-related leave. These updates, highlight key changes that will impact how businesses handle maternity, paternity, adoption, and shared parental leave. Here’s a breakdown of what employers need to know.

1. Pregnancy and Maternity Discrimination: What Employers Should Be Aware Of

The EHRC’s updated section on pregnancy and maternity offers a comprehensive summary of employers’ duties toward pregnant workers. It emphasizes the importance of avoiding pregnancy-related discrimination, detailing the key steps businesses should take to comply with the law.

2. Returning to Work After Pregnancy, Adoption, or Maternity Leave

For employees returning to work after taking time off for pregnancy, adoption, or maternity, employers have specific obligations. The EHRC’s updated guidance explains how to navigate this period, ensuring a smooth transition back to the workplace. Employers are encouraged to be mindful of new parents’ needs, offering flexibility and understanding while maintaining a compliant return-to-work process.

3. Family-Related Leave and Pay: What’s Changed?

One of the most significant aspects of the updated guidance addresses the employer’s responsibilities around pay during family leave, which includes maternity, paternity, adoption, and shared parental leave. The document clarifies how these different types of leave should be managed and paid, helping employers ensure they meet their legal obligations while supporting employees through significant life changes.

4. Practical Advice and Best Practices for Employers4

Alongside legal updates, the EHRC has included practical examples and advice to help businesses implement these changes. These examples are designed to provide clarity on typical scenarios employers might face.

Final Thoughts: Stay Compliant and Supportive

If you haven’t yet, now is the perfect time to review your policies and ensure you’re fully aligned with the new regulations. For further help and advice, please contact [email protected].

Latest News

AI Skills Drive Productivity & Pay

The PwC’s 2024 report has revealed that AI exposed sectors are witnessing the greatest growth in labour productivity, with the jobs requiring AI skills attracting substantial wage premiums.

Productivity and AI: A Winning Combination

The report reveals that productivity growth is almost five times higher in industries where AI can be easily integrated. Financial services, IT, and professional services are leading the charge, showcasing how AI can revolutionize work efficiency.

The New Gold Standard

UK employers are recognizing the value of AI skills, offering an average wage premium of 14% for roles requiring such expertise. The legal and IT sectors are particularly lucrative, with AI skills fetching wage premiums as high as 25% in some global markets. Additionally, the requirement for candidates to have AI skills within the UK job market is growing 3.6 times faster than the overall job market.

A Solution to Labour Shortages

The report observed that companies are using AI to tackle staff shortages, supposedly a promising development for markets grappling with a decreasing working-age populations.

PwC’s findings stress the transformative impact of AI on productivity and wages, marking a pivotal shift in how businesses and employees approach the future of work.

Latest News

New Tipping Policy Shakes Up London Restaurant Scene

A London restaurant, Ping Pong, has introduced a new tipping policy in anticipation of the upcoming Employment (Allocation of Tips) Act 2023.

Understanding the Tipping Act

The Employment (Allocation of Tips) Act will introduce key provisions, including:

  1. Mandatory Passing of Tips: Employers must pass on 100% of tips to staff without any deductions, except those required by tax law.
  2. Statutory Code of Practice: Employers will have a duty to observe the Code of Practice which will profile principles of fairness and transparency.
  3. Written Policy Requirement: Employers will be require to have a written policy on tips that ensures consistent distribution.
  4. Equality for Agency Workers: Agency workers will be entitled to the same benefits under the Act as regular employees.

Tipping Policy

Ping Pong is piloting a policy that eliminates card-based tips. Customers can still leave cash tips, but the previous optional 12.5% service charge (of which 90% went to staff) has been removed from customer bills. In its place, the restaurant is introducing an optional 15%, “brand fee” directed towards franchise fees and other brand-related expenses.

To compensate for the removal of the service charge, Ping Pong is raising staff wages by 19%, bringing the minimum hourly wage to £12.44.

A Strategic Trial

This proactive approach by Ping Pong highlights the restaurant’s commitment to fair compensation for its staff while navigating the new regulatory landscape which may occur due to the Employment (Allocation of Tips) Act 2023. As the hospitality industry adapts to changing legislation, it will be interesting to see how other establishments respond and what long-term impacts these changes will have on employee earnings. For specific help and guidance on what this means for your business, please contact [email protected].

Latest News

The Hidden Cost of Working from Home

A recent study by the University of Warsaw has shed light on a significant issue facing remote workers in the UK. The research indicates that individuals who work entirely from home are less likely to receive pay rises and promotions compared to their office-based counterparts. This revelation raises concerns about the potential career drawbacks of remote work, a mode of employment that has become increasingly common.

Key Findings

The study surveyed 937 managers across the UK and revealed that:

  • Promotion Disparities: Managers were 11% less likely to promote staff who worked exclusively from home compared to those who worked entirely in the office.
  • Pay Rise Inequities: Employees working entirely from home were 9% less likely to receive a pay rise than their office-based peers.
  • Impact on Hybrid Workers: Those who split their time between home and the office were, on average, 7% less likely to be promoted or receive a pay rise.

Gender Pay Gap in Remote Work

The research also highlighted a concerning gender pay gap among remote workers:

  • Men: Managers were 15% less likely to promote men working entirely from home and 10% less likely to give them a pay rise compared to those working entirely in the office.
  • Women: Female remote workers faced a 7% lower chance of promotion and an 8% lower chance of receiving a pay rise.

Impact of Demanding Work Cultures

The study found that the penalties for working from home were even more pronounced in organizations with demanding work cultures. In such environments:

  • Men: Male remote workers were 30% less likely to be promoted and 19% less likely to receive a pay rise compared to their office-based colleagues.
  • Women: Female remote workers in these demanding cultures were 15% less likely to be promoted and 19% less likely to receive a pay rise.

Implications for Remote Work

These findings underscore a critical issue for employers and employees. With remote work becoming more common, it is essential for employers to address any disparities to ensure equitable career advancement opportunities for all workers. Employers should reassess promotion and pay rise criteria to prevent bias against remote workers, potentially through structured performance evaluations and clear, objective criteria for advancement.

Latest News

EAT Decision: When Does a Volunteer Become a Worker?

In a significant decision, the Employment Appeal Tribunal (EAT) has decided that a volunteer can be classified as a worker if they are entitled to remuneration for their activities. This ruling emerged from a case Groom v Maritime & Coastguard Agency [2024] EAT 71.

The Case Background

Mr. Martin served as a volunteer for the Coastal Rescue Service (CRS), an organization that operates with around 3500 volunteers. These volunteers are guided by a handbook that emphasizes the voluntary nature of their roles while setting expectations such as attending training sessions and maintaining a reasonable level of incident attendance. For specific activities, volunteers could claim reimbursement for minor costs associated with their service, including disruptions to personal life, employment, and for attending unsocial hours call outs.

Mr. Martin challenged the denial of trade union representation at a disciplinary hearing, arguing that he qualified as a worker.

Initial Tribunal Decision

Initially, the tribunal decided that Mr. Martin was not a worker, citing the absence of a contract between him and the CRS. The tribunal emphasised that there was no automatic right to remuneration and noted that numerous volunteers did not claim their expenses. Consequently, the agreement between Mr. Martin and the CRS was deemed voluntary.

Mr. Martin subsequently appealed this decision.

The EAT’s Ruling

Upon appeal, the EAT overturned the tribunal’s decision. Notably, the EAT rejected the notion that a volunteer relationship is inherently unique. Instead, the tribunal highlighted the absence of a legal definition for “volunteer,” acknowledging that volunteer status can vary based on the agreement between the relevant parties.

The EAT found it immaterial that remuneration was not automatic or that other volunteers chose not to claim it. The critical point was that a contract formed at the point a volunteer had the right to receive remuneration for their attendance. Furthermore, volunteer attendance was regulated by a Code of Conduct, mandating minimum attendance at training and rescue incidents.

Conclusion and Implications

Both parties concurred that if an obligation was present, it pertained to personal service. As a result, the EAT designating Mr. Martin as a worker. Nonetheless, the EAT did not address whether Mr. Martin was considered a worker during unremunerated activities, leaving this issue unresolved.

This ruling illustrates the importance of the specific terms and conditions governing volunteer arrangements and their potential implications for employment rights.

For specific help and guidance on what this means for your business, please contact [email protected].

Latest News

Labour’s Victory: A New Era for UK Employment Laws

Labour’s victory marks the dawn of a new era for employment laws in the UK. With a clear mandate from the electorate, and the repatriation of employment rights to Westminster post-Brexit, Labour’s victory has set the stage for a fundamental transformation of employment laws in the UK. Within 100 days of entering office, Labour is poised to implement sweeping changes under its Plan to Make Work Pay. Here’s a glimpse of what’s to come:

Employment Rights

Labour is to take a firm stand against exploitative work practices and end ‘one sided flexibility’. New rules that are designed to prevent the abuse of zero hours contracts are planned, as well as  laws to ensure basic rights from day one, including parental leave, sick pay, and protection from unfair dismissal. Making the right to bring an unfair dismissal claim a day one right is a radical change to the law and will require a significant adjustment in how employers deal with their employees in the initial months of the employment relationship.

Under the Plan, the new government will also introduce strict new rules relating to the controversial practice of ‘fire and rehire’ that will make it more difficult for employers to change terms and conditions.

Employment Status

The employment rights and protections afforded to workers in the UK currently depend on their status as either ‘an employee’, ‘worker’ or ‘self-employed’ person. This may be about to change via the creation of a single status of ‘worker’ for all those except those who are genuinely self-employed. This would increase the number of individuals entitled to the minimum rights such as minimum wage and statutory sick pay, having significant cost and administrative burdens for employers.

Empowering Workers

Labour proposes to establish a Single Enforcement Body, enhancing the collective power of workers and their trade unions. This move aims to ensure robust enforcement of workers’ rights, making it easier for employees to unionize and strike, thereby fostering fairer workplaces.

Raising the Minimum Wage

Labour has committed to raising the minimum wage to a genuine living wage that reflects the actual cost of living. By changing the Low Pay Commission’s remit and removing age bands, all adults would be entitled to the same minimum wage, with the objective of promoting fairness and reducing in-work poverty.

Tackling Pay Gaps and Discrimination

Labour is committed to reducing the gender pay gap and strengthening protections against maternity and menopause discrimination and sexual harassment. Protections for whistleblowers reporting sexual harassment will also be reinforced, in order to ensure a safer and more equitable work environment.

Championing Disabled Rights

Championing the rights of disabled people with measures to ensure full equal pay, Labour would pass legislation to require large employers to report on their disability pay gap. This measure would be supported by improved access to reasonable adjustments. Tackling the Access to Work backlog is also a priority, ensuring timely support for disabled workers.

Menopause Rights

Labour will build on existing protections for workers experiencing menopause. This includes introducing mandatory workplace menopause policies to provide support and prevent discrimination.

Strengthening TUPE Protections

Labour have committed to bolstering the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 2006, to ensure that employees retain their terms and conditions of employment when their employer changes ownership the extent of these proposals is yet to be revealed.

In all, Labour’s comprehensive New Deal for Working People promises to reshape the UK’s employment landscape and as a result, the world of HR and employment law is about to become even busier. We will be issuing more detailed guidance and delivering training on these plans as developments progress. For specific help and guidance on what this means for your business, please contact [email protected].

Latest News

Enhanced Redundancy Protections

Effective from April 6, 2024, the Maternity Leave, Adoption Leave, and Shared Parental Leave (Amendment) Regulations 2024 extend the existing statutory protection against redundancy. These regulations now safeguard pregnant women, new parents returning from any period of maternity or adoption leave, and those who have taken at least six weeks of shared parental leave.

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 provides protection for pregnant employees from the moment they inform their employer of their pregnancy until 18 months after the birth. Additionally, employees returning from adoption or shared parental leave are protected against redundancy for at least six months after their return to work.

These employees are granted special protection in redundancy situations. They have the right to be offered a suitable alternative vacancy, if one is available, before other employees.

Latest News

Your Guide to the New Flexible Working Code

On 6 April 2024, the new Code of Practice on flexible working requests came into force..  

This aligns with the enactment of the Flexible Working (Amendment) Regulations 2023, which established the right to request flexible working from day one of employment.

The Employment Relations (Flexible Working) Act 2023 brings workers new benefits, including:

  • Flexible working requests becoming a day-one right; 
  • Employers must consult before rejecting a flexible working request; 
  • Two statutory requests in any 12-month period; 
  • Decision time reduced to two months; and
  • Elimination of requirement for employees to explain impact of requested changes on employers.

The updated statutory Code of Practice encompasses the changes outlined in both the Act and the Regulations. The code can be accessed here: Code of Practice on requests for flexible working | Acas

Latest News

New Regulations Alter Statutory Paternity Leave

The Paternity Leave (Amendment) Regulations 2024 (SI 2024/329) apply specifically to children expected to be born or adopted after 6 April 2024, or whose placement for adoption or entry into Great Britain for adoption occurs on or after the same date.

Here’s a breakdown of the key revisions introduced by the regulations:

  • Fathers and partners can now split their paternity leave into two separate one-week blocks, providing greater flexibility in scheduling;
  • The time frame for taking paternity leave has been extended, allowing fathers and partners to use their leave at any point during the first year following the birth or adoption of their child;
  • Notice periods for taking leave have been shortened in most cases; and
  • Fathers or partners who have already submitted notice for leave can now adjust their chosen dates provided 28-days’ notice is provided.
Latest News

Disabled Council Employee Awarded £4.6 Million

An employment tribunal has recently ruled in favour of a disabled council employee, granting her a substantial £4.6 million following her dismissal while on sick leave. The employee, who suffers from ADHD and post-traumatic stress disorder (PTSD), held the role of Director of Public Service Reform at Hammersmith and Fulham Borough Council for less than nine months.

The tribunal found that her disabilities were known to the employer at the time of dismissal. Moreover, it was determined that her dismissal was directly linked to her PTSD, stemming from her involvement in the response to the Grenfell Tower tragedy.

The tribunal partially upheld the employee’s allegations of harassment, direct discrimination, and discrimination arising from her disability. Additionally, it found that the employer had unreasonably failed to adhere to the Acas Code of Practice on Disciplinary and Grievance procedures regarding both the employee’s grievance and her termination.

In addition to the above, the tribunal also concluded that senior officers at the council, including the chief executive, had attempted to deliberately mislead both the employee and the tribunal.

During the remedies hearing in January 2024, the tribunal heard expert evidence that suggested that the employee was unlikely to return to work, with her health decline being directly linked to the council’s actions.

While the written reasons behind the award are pending, it is understood that the £4.6 million includes an amount for exemplary damages. This award is believed to be one of the highest made for disability discrimination.

Despite the ruling, the council is reportedly contemplating an appeal.