Labour Research June 2016

Law Matters

Law round-up

• On 4 May 2016, the Trade Union Bill received royal assent and is now the Trade Union Act. See pages 7 and 25 for full details.

• On 8 May 2016, the Conduct of Employment Agencies and Employment Business (Amendment) Regulations 2016 came into force. The Regulations extend restrictions on recruitment advertising in European Economic Area states other than Great Britain, and provide that employment agencies and businesses do not have to enter into written terms of agreement with hirers. 

Employment agencies and businesses will also now be allowed to enter into contracts on behalf of the work-seeker with the hirer, or vice versa.

• The government recently carried out a consultation on a national innovation plan, as well as a call for evidence relating to whether post-termination restrictions on employment with competitors inhibit innovation.

• A government consultation on tipping, gratuities and service charges is underway. 

The consultation makes various proposals for reform, including that employers be prevented from taking any money from tips and that the existing voluntary code of practice become statutory. 

The government action follows on from successful union campaigning in this area. For example, general union Unite has been running a Fair Tips campaign, calling for legislation to ensure staff have 100% ownership of tips, total control over how they are shared out as well as greater transparency so it is clear to everyone if an employer is keeping tips.