It is understood that Labour's Plan to Make Work Pay ("the Plan") is likely to involve a Code of Practice which will set out expectations of normal working hours and when staff should expect to be contacted by employers. As with the Acas Code of Practice on Disciplinary and Grievance Matters, failure to follow the Code would not in itself form a right to bring a tribunal claim, however any failure to follow it could be considered as an aggravating factor when awarding compensation. If it is given the same status as the Disciplinary and Grievance Code, a failure to follow it could result in a compensation uplift of up to 25%.
Comment
At present, it is unclear whether any uplift will be as a result of breaches of the proposed Code, or of an employer's policy put in place in light of it. Some reports say that employers who are in repeated breach could expect a penalty, in which case any uplift would look past the Code and look at compliance with any internal workplace policy. This is a much more interventionist approach than that currently taken in relation to disciplinary and grievance matters.
In the meantime employers should take the opportunity to review working practices and the potential impact of the new policy. Clear boundaries between work life and home life are a positive step towards protecting employees' well-being. Employers which are able to show a genuine commitment to supporting mental health and well-being through employee engagement will benefit from increased productivity, higher retention rates and reduced sick days.
Please see our Legal Update on the right to request a four-day working week for further information on reform in this area.
