Rachael Lloyd
Posted on 10 Nov 2014

Employment Law Monday Update - 10 November

Anyone who works in HR will know how quickly changes come about in Employment Law, and how hard it is to keep up with them all. With that in mind, the Michelmores Employment Team has created a weekly newsletter that encapsulates the most significant Employment Law developments of the last 7 days. The Weekly Update will be sent out around midday on Monday, so be sure to keep an eye out for it!

Government Plans Additional Guidance for Record Keeping under Agency Workers Regulations

The government has recently completed a review of the Agency Workers Regulations 2010, regarding record keeping requirements. Views were sought from businesses, temporary work agencies and trade and employee representative organisations.

The Regulations currently do not prescribe the records that a recruitment business or hirer should keep. However, as a result of the review, the government considers that businesses need to record information about agency workers in order to demonstrate compliance with the Regulations. Although temporary work agencies can find it difficult to obtain information from hirers about employment terms, it is important for them to do so, in order to ensure that temporary agency workers receive the same basic working and employment conditions as the hirers' direct employees, after the 12 week qualifying period. Therefore, on 3 November 2014, the government announced that it will produce detailed guidance in respect of record keeping, and will work with interested parties to help achieve this.

Government announces Taskforce to limit impact of Bear Scotland Holiday Pay Decision

In last week's midweek Employment Update (5 November), we informed you of the recent Employment Appeal Tribunal decision, which confirmed that the pay calculation for the four week statutory minimum holiday entitlement should take account of overtime pay, even if that overtime is not guaranteed.

Following the decision in Bear Scotland Ltd and others v Fulton and others [UKEAT/0047/13], the government is setting up a taskforce in order to assess how the impact of the decision on businesses can be limited. The taskforce will include several government departments and seven business representative groups including CBI, EEF and the Institute of Directors. There is currently no indication as to when the taskforce will present its results, although it is known that the group will meet shortly to discuss the judgment.

UK Living Wage Rate Increase

The Living Wage Foundation has announced a new Living Wage rate for the UK which, as of 3 November 2014, will be £7.85 per hour (£9.15 for London). This is 21% higher than the current national minimum wage rate for adults, which is £6.50 an hour.

The Foundation has stated that there are over 1,000 Living Wage accredited organisations in the UK, employing 35,000 individuals. The Department of Energy and Climate Change has recently announced that all of its employees will now be paid at least the Living Wage.

The Living Wage is an independent calculation that is intended to reflect the 'real cost of living'.