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News and analysis HR news briefing Government plans right to request four-day work week 1 Government plans right to request four-day work week Flexible working legislation to be tightened 2 Next loses equal pay tribunal after basing pay on market rates Retailer loses six-year legal battle 3 Sky Sports pundit ordered to pay £700k in “disguised employee” case Worker should have been ‘inside’ IR35 4 Employment law changes: What HR needs to know Plans affecting working hours, tribunal claims and harassment law S T O C K : A D O B E I M A G E S 5 Police officer found guilty of work avoidance tactics Man slept while faking work The UK government has announced plans to give full-time workers the right to request a four-day work week, the Te l e g r a p h reported. The legislation, set to be introduced in the autumn, would tighten current flexible working legislation, part of which would allow employees to request compressed hours: meaning that full-time workers on a five-day pattern could work the same amount of hours in four days. According to Ronni Zehavi, CEO of HR software HiBob, enhancing flexible working could help employers appeal to younger generations. He said: “Embracing the shift towards a four-day work week is an opportunity for forward-thinking companies to align with the evolving needs of today’s workforce, especially as Gen Z re-writes the workplace rulebook. “‘Generation transformation’ is not just asking for work/life balance; they are demanding it. Flexibility is no longer a perk but a requisite; they’re not willing to do more for less. “Employers who are quick to recognise and adapt to this new reality will set themselves apart.” Next loses equal pay tribunal after paying ‘market rates’ Retailer Next has lost a six-year equal pay claim, after a tribunal ruled that it should not have relied on market rates when deciding on employees’ pay. The tribunal found that the retailer paid warehouse workers, who were mostly men, more than shop workers, who were mostly women. Representatives of Next relied on the argument that it did so as the market rates for warehouse workers were higher than for retail workers, BBC News reported. However the tribunal rejected this as justification for the pay difference. The decision showed that benchmarking salaries against the market rate could be sex discrimination, explained Emma Satyamurti, joint head of employment and discrimination at Leigh Day, the firm representing Next shop workers. “The market rate will often reflect historic attitudes to ‘men’s’ and ‘women’s’ work, particularly in sectors where there is gender segregation between different workforces (retail and warehouse in the present case),” she said. 6 HR September/October 2024 hrmagazine.co.uk
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HR news briefing News and analysis what September/October means for you Sky Sports pundit ordered to pay £700k in IR35 loss Sky Sports pundit Stuart Barnes was a “disguised employee” and should have been classed as working inside of IR35 leg islation, a tribunal has ruled, ordering him to pay £700,000 to HMRC. The former rugby player lost his six-year tribunal a er HMRC ruled that he should have been classed as an employee due to his arrangements with Sky Sports. Seb Maley, CEO of IR35 compliance firm Qdos, said: “Barnes was deemed to have been wrongly working outside of IR35 for a number of reasons, including not having the right to provide a substitute, which is one of the hallmarks of an inside IR35 engagement. Looked at differently, this is reflective of an employment relationship. Murder suspect unfairly dismissed over reputation risk, tribunal rules “There was also the exclusivity that Sky held over Barnes. Again, this is much more akin to an employment relationship as opposed to self-employment.” It’s time to transform the HR business partner role Analyst Josh Bersin explores how to equip HR business partners for success. A first-tier tribunal previously decided that Barnes had been rightly classified under IR35 as a freelancer, however HMRC was able to successfully appeal the case as its representatives argued that the tribunal had not considered relevant factors in Barnes’ working arrangements a t S k y. A care assistant who was charged with murder was unfairly dismissed, a tribunal found. Her employer had not properly investigated whether the charges would cause damage to its reputation. Jacqueline Difolco was arrested and charged with murder, along with two other defendants, in October 2022. The Daily Record newspaper reported the incident, which prompted employer concerns about a breakdown of trust and confidence, and potential reputational damage. Difolco was dismissed but the tribunal ruled this was unfair as the company did not properly investigate whether the charges could reasonably cause reputational damage to the organisation. How should HR respond to UK riots? Consultant Shakil Butt suggests practical steps that employers can take to respond to violent behaviour and racist sentiment. HR must be ready for the ‘big shift’ Sylvain Grande, chief product officer for PayFit, examines how HR can prepare for mandatory payrolling y t’ ef or w or ng benefits. ts. Pam Loch, founder of the law firm Loch Associates, commented: “This case highlights the necessity of undertaking a fair and reasonable disciplinary process, even when there are ongoing criminal proceedings. Employers should avoid jumping to conclusions, especially in the absence of supporting evidence, and they should pause before assuming that there is an automatic risk to reputation.” hrmagazine.co.uk Sep September/October 2024 HR 7

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News and analysis HR news briefing

Government plans right to request four-day work week

1 Government plans right to request four-day work week Flexible working legislation to be tightened

2 Next loses equal pay tribunal after basing pay on market rates Retailer loses six-year legal battle

3 Sky Sports pundit ordered to pay £700k in “disguised employee” case Worker should have been ‘inside’ IR35

4 Employment law changes: What HR

needs to know Plans affecting working hours, tribunal claims and harassment law

S T O C K

: A D O B E

I M A G E S

5 Police officer found guilty of work avoidance tactics Man slept while faking work

The UK government has announced plans to give full-time workers the right to request a four-day work week, the Te l e g r a p h reported. The legislation, set to be introduced in the autumn,

would tighten current flexible working legislation, part of which would allow employees to request compressed hours: meaning that full-time workers on a five-day pattern could work the same amount of hours in four days.

According to Ronni Zehavi, CEO of HR software HiBob, enhancing flexible working could help employers appeal to younger generations.

He said: “Embracing the shift towards a four-day work week is an opportunity for forward-thinking companies to align with the evolving needs of today’s workforce, especially as Gen Z re-writes the workplace rulebook.

“‘Generation transformation’ is not just asking for work/life balance; they are demanding it. Flexibility is no longer a perk but a requisite; they’re not willing to do more for less.

“Employers who are quick to recognise and adapt to this new reality will set themselves apart.”

Next loses equal pay tribunal after paying ‘market rates’ Retailer Next has lost a six-year equal pay claim, after a tribunal ruled that it should not have relied on market rates when deciding on employees’ pay. The tribunal found that the retailer paid warehouse workers, who were mostly men, more than shop workers, who were mostly women.

Representatives of Next relied on the argument that it did so as the market rates for warehouse workers were higher than for retail workers, BBC News reported. However the tribunal rejected this as justification for the pay difference. The decision showed that benchmarking salaries against the market rate could be sex discrimination, explained Emma Satyamurti, joint head of employment and discrimination at Leigh Day, the firm representing Next shop workers. “The market rate will often reflect historic attitudes to ‘men’s’ and

‘women’s’ work, particularly in sectors where there is gender segregation between different workforces (retail and warehouse in the present case),” she said.

6 HR September/October 2024

hrmagazine.co.uk

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