The General Election on 04 July 2024 has given us a new UK Government, and it is the State Opening of Parliament that marks the start of the new session. From the Throne in the House of Lords, His Majesty reads the speech which has been written for Him by the UK Government. As He leaves, the Parliamentary session starts and work begins.
ICB has compiled a document that outlines all of the Bills, and below highlights the two that impact bookkeepers and payroll professionals:
The Equality (Race and Disability) Bill
For large employers (250+ employees), this Bill will introduce mandatory ethnicity and disability pay reporting. We need to look at the Great British legislation for the following:
- What are the definitions of ethnicity – white British, black British, African etc? If payroll produces these pay reports, we will need to hold these definitions
- What are the definitions of disability?
This Bill has the potential to change data gathering and input if payroll systems are to help employers with reporting.
The Employment Rights Bill
This promises to be bring very extensive reforms:
- Banning ‘exploitative’ zero-hour contracts and we need to look for this definition
- Ending the ‘Fire and Rehire’ and / or ‘Fire and Replace’ practices – and replacing the Code of Practice that has only just come into force
- Making parental leave, sick pay and protection from unfair dismissal a day 1 right, recognising that employers can still operate probationary periods
- Removing the Statutory Sick Pay (SSP) requirement that the worker must have earnings at or above the Lower Earnings Limit (LEL)
- Making flexible working the default from day-one for all workers
- Strengthening protections for new mothers
- Establishing a new Single Enforcement Body / Fair Work Agency to strengthen enforcement of workplace rights
- Updating trade union legislation
The major issue here is that the Bill will extend to Great Britain only, as employment law is devolved to Northern Ireland. The potential of having an SSP system that works one way in Great Britain and another in Northen Ireland does not excite ICB and this view will be expressed in any consultation that may result.
All these issues have been addressed on the monthly Wages Wednesday presentations and will, no doubt, continue to be a large part until this Bill receives Royal Assent.
