The government has published The Small Business, Enterprise and Employment Bill. The principal employment measures are set out in Part 11 and a summary is below.

Clause 135 addresses a problem identified in a call for evidence on whistleblowing which indicated a lack of consistency in the approach where disclosures were made to regulators and other bodies, known as ‘prescribed persons’. Under this Clause, prescribed persons will be required to report annually on the whistleblowing disclosures they receive.

Currently only around half of claimants receive any form of payment of their Employment Tribunal award prior to enforcement. To help address this problem, Clause 136 of the Bill will allow the imposition of a financial penalty on non-compliant respondents with the aim of encouraging compliance with Employment Tribunal rulings and the prompt payment of awards. The provisions will also cover non-payment of sums owed in settlement agreements reached following ACAS conciliation.

To reduce the time and costs associated with postponements in employment tribunals, Clause 137 of the Bill will allow the Secretary of State, in secondary legislation, to place a limit on the number of successful applications for postponements a party can have in a case, other than in exceptional circumstances; and require the Secretary of State, in secondary legislation, to oblige employment tribunals to consider the use of cost orders where a successful late application for postponement is made at short notice before a hearing.

As part of the government’s commitment to clamp down on those who employ people below the minimum wage, Clause 138 of the Bill contains measures requiring that the maximum penalty will be determined by the amount owed to each worker meaning that the maximum financial penalty for underpayment of the national minimum wage will change from £20,000 in all, no matter how many workers are involved, to £20,000 per worker.

Following consultation the Government has decided to ban exclusivity clauses in zero hours contracts, via Clause 139 of the Bill. This would allow all workers on these contracts, whose current employers are unable to offer them enough work, to boost their income by working elsewhere. The BIS has also announced that the government will: (i) consult further on how to prevent rogue employers evading the exclusivity ban, for example through offering 1 hour fixed contracts; (ii) work with business representatives and unions to develop a code of practice on the fair use of zero hours contracts by the end of 2014; and (iii) work with stakeholders to review existing guidance and improve information available to employees and employers on using these contracts

Clauses 140 to 142 will give the Treasury a power to require public sector workers to repay exit payments if they are re-employed in the public sector. The clauses will also allow the appropriate Secretary of State to waive this requirement in certain circumstances.

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.