Five key employment law issues that should be on every
businesses radar in 2018 - Comment by Peninsula Employment Law Director Alan
Price
From the removal of tribunal fees to widespread claims regarding
sexual harassment, 2017 has been a busy year in employment law. Although
employers might hope for a quieter 2018, it’s looking likely that there will be
a number of issues that are prevalent throughout the year, amid the on-going
uncertainty of Brexit.
1.
General Data Protection
Regulations
The European General Data Protection Regulations, or ‘GDPR’, are
set to come in to force across Europe on 25th May 2018.
These Regulations seek to enhance the rights of individuals and
make changes to existing data practices, including removing the ability to
charge a fee to provide access to information unless the request is manifestly
unfounded or excessive.
Employers should use the first half of 2018 to review their
current practices and documentation to assess how they process data and review
whether this is in line with GDPR. The potential consequences of non-compliance
are costly, with maximum fines of 20 million or 4% of annual turnover. Experts
have said that Uber would have been fined £17.75m for their recent data breach
under GDPR.
2.
Employment status
2017 saw numerous claims from individuals questioning their
status and their employment rights, with the most prolific cases within the
‘gig economy’.
Status is going to continue as a big issue in 2018. Pimlico
Plumbers are taking their appeal against the decision that a plumber was a
worker to the Supreme Court in February. Uber has also applied to leapfrog the
Court of Appeal and have their appeal heard in the Supreme Court.
There are numerous other cases that will be heard at a lower
level, from Deliveroo riders to Olympic athletes. The government is expected to
respond to the Matthew Taylor Report on modern working practices before the end
of 2017, and many employers may be waiting to see if the recommendations on
clarifying status will be actioned in 2018.
3.
Increase in tribunal claims
The most significant decision in 2017 was the Supreme Court
deciding the tribunal fee regime was unlawful. Since 26 July 2017, claimants no
longer have to pay a fee to bring a tribunal claim.
The impact of this decision is that claims are likely to
increase, and potentially keep increasing in 2018. There is no longer a
financial deterrent on individuals who wish to challenge their employers in the
tribunal. Whilst this improves access to justice for those with a true
complaint, there may also be an increase in spurious claims or claims to
pressure employers into financial settlements.
Claims fell around 79%once fees were introduced.
Employers will be keeping a close eye on the statistics to see if claims
increase back to this level or if they go even higher.
4.
Gender pay gap reporting
deadline
Employers caught by the gender pay gap reporting requirements
have to publish their report by the 4th April 2018, or the 30th
March 2018 if they’re a public sector employer. The report needs to be uploaded
to the company’s own website and a government website, allowing full public
access to the data.
It’s currently thought that many employers have already
calculated their gender pay gap but are sitting on the data to avoid the
negative publicity that follows, which we saw when the BBC released their
gender pay report. This is likely to result in an influx of reports being
released close to the deadline date.
5.
Payments for sleep-in shifts
Payments for sleep-in shifts continue to be a significant area
of concern for many care employers. The Court of Appeal will hear appeals in
two important cases regarding the right to receive the national minimum wage
for sleep-in shifts in 2018.
The government has recognised the uncertainty around this area,
and the financial impact of getting this wrong, and has introduced the Social
Care Compliance Scheme. Employers can voluntarily sign up to the scheme to
review their sleep-in payments and make good any underpayments without facing
further enforcement action.
The scheme will remain open until the end of 2018 and HMRC are
likely to continue their targeted enforcement in this sector throughout the
year.
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For further clarification, please
contact Jane Pearson on 0161 827 8511 or Jane.Pearson@peninsula.uk.com