Tag: employment law

Does your business need an AI Policy?

April 2, 2024, By

Since generative AI programmes rose to prominence in 2022, they have been adapted, used, and misused by people and businesses across the world. As a business owner, it may be tempting to make use of AI to make some processes more efficient or to take care of tedious admin work. However, this new technology comes with many risks if you choose to embrace it. It’s important to make clear to staff how and when AI may be used within your business, and a comprehensive AI policy can lay out your expectations for its use.

What are the uses and risks of AI?

As a machine learning programme, AI programmes like Chat GPT scrape huge portions of the internet and use that information to generate responses to whatever question or prompt you put in. However, this “scraping” is indiscriminate and can scrape just as easily bad data as good data. Bad data can include anything from misinformation to offensive phrases and attitudes. AI programs have also been known to completely make things up (“hallucinate”).  Therefore, it is advisable to verify any data, rules, facts, etc., that might be quoted in AI-generated documents.  When producing written work with AI, it is also advisable to rewrite the content in your own words. This allows you to avoid accidental plagiarism from the AI’s scaped content, remove any mistakes and tailor the writing to your brands tone of voice.

AI can also be used to draft generic emails, find relevant content in large documents, and digest large amounts of raw data instantly, among other things. However, generative AI systems continue to learn from what we ask them. This means that any personal or sensitive information can be taken by the AI and regurgitated elsewhere without you knowing about it. This can pose an enormous data breach risk, and with client and employee data, it is very important to ensure that any use of AI is in compliance with GDPR rules. If using AI for any admin tasks, don’t include sensitive information, anonymise, and redact information where needed.

Some employers have taken to using AI in the recruitment process in order to scan through large volumes of applicants and whittle them down to the best candidates. This needs to be implemented responsibly, as historical bias has been known to bleed into AI decision-making. A robot looking at the hiring decisions made by hundreds of employers can absorb the unconscious bias of those employers, exacerbating unfair hiring practices. Worse still, many AI programs are “black box” systems, which means not even the AI developers can see exactly why the AI made the decision it did. This lack of transparency means if a candidate appeals the decision, the employer will not be able to explain why they were turned down.

AI is only as good as the information it can access or is provided to it.  Therefore, we recommend using AI to complement human decision-making rather than outright replacing it. Human judgment will help the business avoid potentially damaging and unjustifiable decisions. Employers have also found uses for AI to complement employee onboarding processes, aid performance management, conduct and productivity analysis, manage remote workers, and work alongside employees with, e.g. automation of repetitive or dangerous tasks to enhance efficiency and safety, etc.

However, if your organisation uses AI as well as a number of potential legal risks, you should also weigh up the benefits of it’s use against some of the other negatives.  AI tools lack any element of human judgment or morality, and the over-reliance on AI can erode the personal nature of the employer/employee or business/client relationship. This can, for example, damage the relationship between an employee and their line manager which in turn can lead to potential employment disputes.  lack of common sense within AI tools means

What should I include in my policy?

Creating an AI policy is considered best practice for any organisation engaging with artificial intelligence technologies, ensuring ethical practices, compliance with regulations, and fostering trust among teams. Including the following elements in an AI policy helps organisations navigate the complex ethical, legal, and social implications of AI technologies, promoting responsible innovation and building trust among users and the wider community.

Here is a list of just some of the elements that an organisation should include in their AI policy:

  1. Purpose and Scope
    • Clearly define the purpose of the AI policy and its scope within the organisation.
  2. Ethical Principles
    • Outline the core ethical principles guiding AI use within the organisation, such as fairness, transparency, accountability, and respect for user privacy.
  3. Terminology
    • Explain/define key terminology used in the policy.
  4. AI use in the workplace
    • Explain which AI systems are permitted within the organisation and for what uses.
    • Provide guidelines for use.
    • Include a statement that any breach of this policy will have potentially very serious disciplinary consequences and the disciplinary policy can be referred and directed to.
    • Include information outlining who is responsible for meeting the costs of any use of AI.
  5. Monitoring
    • Outline your right to monitor the use of AI in the organisation to mitigate any risks.
  6. Privacy and Data Governance
    • Include policies for handling and protecting data used by AI systems, complying with data protection laws like GDPR. This section should detail how data is collected, stored, used, and shared, and why this is important/potential consequences etc.
  7. Compliance with Laws and Regulations
    • Ensure the AI policy follows all relevant laws, regulations, and standards. This includes adhering to industry-specific regulations and any future laws regarding AI ethics and governance.
    • Explain the legal risks associated with AI-generated content.
  8. Training and Support
    • Include clear guidance on AI training and technical support and ensure you put this into practice as an organisation.
  9. Accountability and Oversight
    • Establish clear accountability structures and oversight mechanisms for AI projects.
    • Explain the recording keeping that is required to ensure compliant use of authorised AI applications and to enhance its usage by the workforce.

Contact Us

At Slater Heelis, our Employment team is experienced in drafting and reviewing HR policies surrounding new and developing technologies. As the landscape around AI continues to grow, we are committed to staying up to date on the latest trends and technologies to make sure we can support our clients with up-to-date policy documentation. The above list is provided as a general example of the types of things that we would advise are included in an AI policy; it is not a substitute for the bespoke advice and policy drafting that we recommend an organisation obtains before making use of AI technologies.

It is advisable for organisations using AI technologies to ensure they have a carefully drafted AI policy in place, as whilst this cannot remove all of the potential pitfalls, it can limit some of the risks involved with the use of AI technologies, leaving you to utilise this revolutionary technology within your organisation. If you would like to talk to our employment and HR specialists, fill out our contact form or call 0330 111 3131.

Employers take note – New Working Time Regulations come into effect

January 22, 2024, By

From 1st January 2024 changes to the ‘Working Time Regulations’ came into effect which detail some significant changes that have the potential to catch employers out –one important change to note is that employees can now carry forward their statutory holiday entitlement if their employer has not ‘encouraged’ them to take it. The changes have also provided more clarity regarding calculating holiday pay for irregular hours workers and part-year workers. As well as introducing rolled up holiday pay for some workers.

So, what do you need to know? Here’s a top-level overview of some of the key changes:

Holiday carry over:

Employees can now carry leave forward that they should have been entitled to take if:

  • The employer has refused to pay a worker their paid leave entitlement
  •  The employer has not given the worker a reasonable opportunity to take their leave and not encouraged them to do so; or
  •  The employer failed to inform the worker that untaken leave must be used before the end of the leave year to prevent it from being lost

Employees can still carry over leave if they have been unable to take it as a result of maternity or other family related leave or as a result of being off sick.

COVID-19: Previously, workers could carry over untaken leave into the next 2 years if they could not take it because their work was affected by coronavirus. However, the following changes have been introduced ;

  • From 1 January 2024, workers can no longer accrue COVID carryover leave. Workers will still be able to use the leave they accrued prior to 1 January 2024 before or on 31 March 2024.
  • The changes also now confirm that workers whose employment terminates on or before 31 March 2024 are able to claim any pay in lieu of any remaining entitlement they were unable to use due to the effects of coronavirus.

Holiday pay calculations:

All full-year workers, except those who are genuinely self-employed, are legally entitled to 5.6 weeks of paid statutory holiday entitlement per year. Four weeks of this entitlement must be paid at a worker’s ‘normal’ rate of pay (as specified by Regulation 13 of the Working Time Regulations). Normal rate of pay can include overtime and commission.

From 1st January 2024, the components which must be included when calculating ‘normal’ rate of pay are defined in the Regulations, therefore, the following must be included in the 4 weeks normal holiday pay:

  • Payments, including commission, intrinsically linked to the performance of tasks which a worker is contractually obliged to carry out.
  • Payments for professional or personal status relating to length of service, seniority or professional qualifications.
  • Payments such as overtime payments, which have been regularly paid to a worker in the previous 52 weeks.

Holiday accrual:

For leave years starting on or after 1st April 2024, the Regulations state the accrual method of 12.07% of the hours worked in a pay period is to be used when calculating holiday pay for irregular-hours workers and part-year workers. Employers can also use the rolled-up holiday pay method as an additional method for calculating holidays for irregular hours and part-year workers for leave beginning on or after 1st April 2024. This essentially means that holiday is paid at the time the work is done rather than when the worker is on holiday.

Record-keeping requirements:

These changes clarify that employers do not need to keep an adequate record of each worker’s daily working hours as long as they can demonstrate compliance with weekly working limits. We recommend that employers should still keep records in regard to working patterns.

Commenting on the updated regulations, Sarah Calderwood, Partner in our employment team said:

“It is important for employers to be aware of such changes and implement changes to employment contracts/handbooks, especially regarding changes to holiday pay and accrual.

We would urge all employers to spend time reading though the new Regulations in detail and consulting with their solicitors should they have any questions at all.”

The new Working Time Regulations came into effect from the 1st January 2024 and full details can be found here.

If you’d like to speak to our employment team and how they can support you with these changes,  you can contact us by calling 0330 111 3131 or by filling in our contact form here.

 

Navigating the New Bill for Parental Redundancy Protection – What Employers and Employees Need to Know

April 19, 2023, By

The new bill dealing with pregnancy and maternity discrimination, introduced by Dan Jarvis MP, aims to protect employees from discrimination related to pregnancy and maternity leave. In this blog, we explore how this bill could impact businesses and employees.

Importance of the Bill

The introduction of the “Protection from Redundancy Bill” (Pregnancy and Family Leave Bill)” reflects a growing concern for the welfare of pregnant employees and those returning to work after maternity leave. The bill addresses the need for stronger legal protections to combat the discrimination faced by many new parents during this critical period of their lives. By understanding the implications of this legislation, employers can foster a more inclusive and supportive work environment, ultimately benefitting both their employees and their business.

Current situation and statistics

Under the current laws in the UK, an employer must offer a suitable alternative vacancy where one exists to an employee who is on maternity leave, shared parental leave, or adoption leave, before implementing any redundancy. However, despite these protections, discrimination against women during pregnancy and maternity leave is still widespread. Calls for better pregnancy and paternity protection were canvassed due to a report which revealed that 77% of women reported having a negative experience or facing discrimination during pregnancy or subsequent maternity leave. Furthermore, an alarming 20% reported suffering financial consequences, such as demotion, missing out on promotions, or exclusion from non-salary benefits.

Policy intention

The intention behind the bill is to extend the existing obligation to offer any suitable alternative employment (during a redundancy consultation process) for an extended period, i.e. from when a woman tells her employer she is pregnant until 18 months after the birth. This proposed 18-month period would mean that a parent returning from a year of maternity leave would receive six months of additional protection.

The potential impact on businesses

If the bill passes through the House of Lords, it will have significant implications for businesses across the UK. Employers will need to review and update their policies to ensure compliance with the new legislation. This may include establishing processes to identify the timeframe of earlier periods of maternity leave when implementing redundancies or creating a supportive environment for employees returning from family leave. By taking these steps, businesses can minimize the risk of potential discrimination claims and demonstrate their commitment to employee welfare.

The potential impact on employees

For employees, particularly expectant mothers and those returning from maternity leave, the Protection from Redundancy Bill promises a more secure and supportive working environment. By extending legal protections against redundancy and offering additional opportunities to secure alternative roles, the bill seeks to alleviate the stress and uncertainty often associated with pregnancy and maternity leave. As a result, employees can focus on their well-being and their new families without the added burden of potential job loss or career setbacks. Furthermore, these changes will encourage a culture of understanding and inclusivity within the workplace, fostering a stronger sense of belonging and empowerment for all employees, ultimately enhancing overall job satisfaction and morale.

Our services

At Slater Heelis, our experienced employment law solicitors can provide guidance on updating your policies or assist with potential discrimination claims. We understand the complexities of employment law and are dedicated to helping both employers and employees navigate the ever-changing legal landscape.

If you would like to speak with one of our experts about this new bill or require assistance with updating your policies, please give us a call at 0161 969 3131 or fill in our contact form.

Employment Law and Brexit

October 3, 2019, By

With the impending 31 October 2019 deadline for Brexit fast approaching, many commentators have been considering the potential impact of a departure from the EU on this date on employment law and employee and worker rights.

The government has shown appetite for implementing changes to employment rights in recent years; from the repeal of the statutory code for disciplinary and grievances, to the increase of the minimum continuous service required to bring a claim for unfair dismissal from one years to two years and the introduction (and subsequent repeal) of fees to bring a claim in the employment tribunal.

Many employment rights are derived from European legislation; such as protection against discrimination, the protection of employment in a business transfer (TUPE) and the right to paid holidays, to name but a few.

However, it is important to understand that, aside from a possible immediate effect on rights to work in the UK, an exit from the European Union will not automatically repeal those employment rights that are derived from European legislation.  This is not to say that a post-Brexit government will not address employee and worker rights at some point but what may change is difficult to predict and will depend on the makeup of any post-Brexit government.

It is also important to remember that many statutory rights are written into employment contracts and therefore, any repeals could have negative and confusing effects on businesses in terms of understanding, implementing and balancing legal and contractual positions in the event of any change.  As such, it is hopeful that any changes to employment rights are implemented only after consultation with industry, trade unions and professional bodies.