Harrods’ victims ‘couldn’t go to HR’ with abuse claims – September 2024 Newsletter

Harrods Scandal and the New Duty to Proactively Prevent Sexual Harassment in the Workplace

In the wake of shocking allegations against Harrods’ former owner, Mohamed Al Fayed, the need for stronger legal protections against sexual harassment has never been more evident. Over 20 women have come forward with accusations of systemic abuse, including sexual harassment and assault, which were allegedly enabled by Harrods management. The recent revelations have underscored the critical importance of creating safer work environments where harassment is actively prevented.

In response to ongoing issues like those seen at Harrods, the Worker Protection (Amendment of Equality Act 2010) Act 2023 introduces a new legal duty for employers to take proactive steps to prevent sexual harassment. Effective from 26 October 2024, this legislation requires businesses to implement policies and preventive measures, such as comprehensive training and risk assessments, to mitigate the chances of misconduct occurring.

Employers must now foster a workplace environment that actively discourages inappropriate conduct, with the risk of increased compensation awards if they fail to comply.

For practical steps, employers should review and update anti-harassment policies, conduct risk assessments, provide effective training, and ensure that reporting mechanisms are accessible. By taking these measures, businesses can not only meet their legal obligations but also create a safer and more inclusive workplace.

Read more about this topic in our latest blog here.

Key Changes to Tipping Practices in the Hospitality Sector

As of 1 October 2024, the Employment (Allocation of Tips) Act 2023 introduces new regulations on tipping practices aimed at promoting fairness and transparency. Employers in the hospitality sector must ensure that all tips and service charges are distributed to workers without any deductions, except for tax purposes. This change is designed to boost transparency and fairness in the way tips are handled, directly benefiting the workers who rely on them.

Employers must now maintain a written tipping policy that clearly outlines how tips are accepted, allocated, and distributed. This policy should be accessible to all employees and must include fair criteria for distribution, such as hours worked, role type, and performance. In addition, businesses are required to keep detailed records of all tips received and their distribution for at least three years. Employees have the right to request access to these records, and employers are obliged to provide this information in a timely manner.

These changes are expected to not only support workers amid the rising cost of living but also to enhance morale and performance, leading to improved customer satisfaction. Employers are encouraged to update their tipping policies and practices promptly to ensure compliance and reduce the risk of disputes, which could lead to costly tribunal claims and reputational damage.

Read more about this topic in our latest blog here.

UK Government’s 4-Day Work Week Trial

The UK government is considering new legislation that would allow employees to request a four-day work week while still fulfilling their contracted hours. This proposal, set to be introduced in the autumn, aims to modernise working practices and improve employee well-being and productivity by offering more flexibility in how work hours are structured.

Proponents of the four-day work week argue that it could significantly improve employee well-being by reducing stress and burnout, thereby enhancing mental health and overall satisfaction. Studies from other countries have shown that a shorter work week can lead to increased productivity, as employees become more focused and efficient during their working hours. Moreover, a four-day week could serve as a powerful tool for attracting and retaining top talent, as flexible working arrangements are highly valued in today’s competitive job market.

However, the shift to a four-day week is not without its challenges. Businesses might struggle with managing customer expectations and maintaining service levels, especially if they operate in sectors that require continuous customer interaction. Additionally, compressing the same amount of work into fewer days could lead to increased workload pressure, potentially negating the benefits of the reduced work week. Implementation may also require significant operational adjustments, and there is the potential for reduced opportunities for team collaboration and face-to-face meetings, which could impact the dynamics of workplace relationships.

Although the legislation would not impose a four-day week on businesses, it would empower employees to request more flexible working arrangements, reflecting the government’s commitment to promoting a healthier work-life balance and adapting to the changing needs of the modern workforce.

Predictable Contracts – Update on Workers’ Rights

The Workers (Predictable Terms and Conditions) Act 2023 was originally set to give workers on zero-hours or temporary contracts the right to request more predictable working patterns. This would have provided greater stability for those in insecure work arrangements by allowing them to seek more reliable hours and scheduling. However, the new government has decided to not bring this Act into force, citing the need for a simpler and more straightforward approach to worker rights.

Instead, the government plans to introduce a new right that will require contracts to reflect the actual hours worked by an employee. This new provision, expected to be included in the upcoming Employment Rights Bill, aims to address the issue of “one-sided flexibility” where employers can demand availability from workers without offering guaranteed hours in return. This shift is part of a broader strategy to modernise workplace rights, ensuring they are fit for a modern economy while empowering employees to have more control over their working lives.

The new approach is seen as an effort to streamline worker protections and provide clearer rights to those in precarious employment. By reflecting the hours actually worked, the government hopes to reduce the uncertainty that currently characterizes many zero-hours and temporary contracts. Employers should be prepared for these upcoming changes, which will likely necessitate revisions to how they structure contracts and manage their workforce.

The Employment Rights Bill, expected in draft form by mid-October, will provide more details on the government’s vision for enhancing worker protections. This represents a key element of Labour’s commitment to “make work pay” by ensuring that workplace rights are robust, fair, and reflective of the realities of modern employment.

By Suraj Purohit.

Employment Paralegal at Kalra Legal Group.

27/09/2024.