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UNITED KINGDOM: Annual Update – Expected labour law changes in 2016

By - - Employment Law

Financial Services

New regulations in the financial services sector: With effect from March 7, 2016 new financial services regulations come into force. The changes will align risk and reward and strengthen individual accountability in the banking sector. There will be a revised ‘approved persons regime’, and new conduct rules. This will significantly change the way individuals work in financial sector firms.
Action required:
(1) Banks, buildings societies and some investment firms will need to become strongly familiar with the new rules.
(2) Amend existing policies and procedures so they are compliant.

Employment Agencies

Recruitment by employment agencies: Legislation prohibiting “overseas only” recruitment by employment agencies came into force on January 5, 2015. The government is now consulting on banning agencies recruiting work-seekers solely from overseas EEA countries without advertising the relevant vacancies to domestic work-seekers. On October 13, 2015, the government published a consultation on this, and we expect a response on February 15 2016.
Action required: No action required at present, but keep abreast of the current situation.

Childcare

Provision of free childcare for eligible working parents: The government proposes to increase the provision of free childcare for eligible working parents of children aged three and four years old to 30 hours a week (for 38 weeks of the year). A provisional law is making its way through Parliament (there are various stages that must be completed for the law to be in force). Further development is expected in 2016.
Action required: No action required at present, but keep abreast of the current legal situation.

EU Membership

UK membership of the European Union: The government plans to renegotiate the UK’s relationship with the European Union (EU). The UK will hold an in-out referendum on membership of the EU before the end of 2017. The government has hinted that the referendum could be as early as July 2016.
Action required: No action required at present, but keep abreast of the current legal situation. The implications of the UK could be significant.

Discrimination

Discrimination on grounds of caste: There are plans to introduce legislation making caste discrimination unlawful. However, progress is slow; consultation was planned for Autumn 2015, but it has been postponed. In the meantime, the courts have decided caste discrimination is unlawful in any event.
Action required
(1) Keep abreast of the current legal situation.
(2) Review existing policies and procedures to ensure staff are not disadvantaged due to caste.

Shared parental leave

Extension of shared parental leave to grandparents: Shared parental leave and pay is expected to be extended to working grandparents. The government intends to bring legislation into force by 2018.
Action required: No action required at present, but keep abreast of the current legal situation.

Gender pay reporting

Introduction of gender pay reporting for larger employers: With effect from March 26, 2016 companies with over 250 employees must publish a report on pay by gender. Failure to do so could result in a fine.
Action required: Establish appropriate reporting procedures.

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