The impact on local businesses of coronavirus and lockdowns over the last 12 months will be felt for years to come. Many employers were caught out by rapidly changing circumstances and having to make difficult decisions in areas they weren’t familiar with, such as employment law. Along with the usual challenges around managing people, this year we expect to see a rise in employment claims against businesses who have not operated within the guidelines of the coronavirus emergency legislation and employment law. Here are the top 5 risks to look out for.
- Coronavirus
- Vaccinations – questions like ‘can I ask employees to get vaccinated’ have complex legal implications and must be handled carefully to avoid breaching employee rights and at worst straying into areas such as discrimination.
- Furlough – due to finish in April 2021, businesses need to consider now what the impact will be of returning people to work. Potential restructures and redundancies must be carefully planned to avoid unfair dismissal claims.
2. COVID-related tribunal claims
- Potential deduction of wages and other claims due to employees being placed on furlough. It won’t help if a written agreement is not in place or was not reached with employees.
- Unfair dismissal and discrimination claims arising from badly managed redundancy processes. Aside from the time that dealing with a tribunal claim takes, the average costs for a straight-forward tribunal claim could be around £20,000.
- New immigration system
- The end of Brexit brought with it a new points-based immigration system for those wanting to work in the UK from 1 January 2021. Except in certain circumstances, EU citizens in the UK now need to apply to the new EU Settlement Scheme to continue living in the UK after 30 June.
- Failure to demonstrate that employees have the correct ‘right to work’ can lead to heavy fines, prosecution and even imprisonment of the employer. This check must be done and verified for every employee.
- Employment law changes
- Important changes were introduced in April 2020 to the way in which contracts of employment should be written and included the new right for employees to receive a contract on day one. Issuing out of date documentation will be a risk and contract templates must be updated.
- Other important changes this year include the increase in the National Living Wage, which will become available to 23 and 24 year olds. Previously, it was only available to those aged 25 and over.
- Recruiting the right people
- As restrictions ease, the demand for new talent will increase. Businesses need to be ready now to hire new talent otherwise it will be more difficult to get back to ‘normal’. Indications are that there will much more movement of employees to new jobs this year.
- Companies should focus particularly on recruiting diverse talent to help mirror and better support their customer base.
Need to talk?
Do you have employment law questions? Are you dealing with a difficult employee and unsure how to proceed? Has the coronavirus pandemic left you wondering what to do next?
We offer free and confidential consultations to provide business owners with the opportunity to ask questions or talk about tricky situations. Contact us today to book a slot.
