Jersey employment law updates: recent changes and horizon scanning

• Updated payroll and leave policies for the increased minimum wage (£11.64), removal of trainee wages, and new parental bereavement leave have taken effect in Jersey
  
  
• Prepare for zero-hours workers formalising their roles and more flexible working requests, impacting staffing and contracts
  
  
• HR professionals should be aware of changes like mandatory gender pay gap reporting and higher discrimination claim caps to ensure compliance

We’ve put together a guide to the recent changes to Jersey employment law and what’s in the pipeline so employers can understand the latest regulations, keep to the right side of the law and support their workers.

What recent updates have come in? 

The last few months alone have seen several changes in employment law impacting employers and employees. Here’s a round-up of the most significant changes we’ve seen come into effect.

Minimum wage increases and trainee wage removal 

In Jersey, minimum wage is now set at £11.64 an hour. That’s £407.40 a week, and £21,184.80 a year for someone working 35 hours a week. 

On top of the increase, one major change is that trainee wages have been scrapped as of the start of 2024. Instead, the minimum wage applies to all employees, regardless of whether they’re a trainee or not. Trainee wages were in the crosshairs after Statistics Jersey’s 2016 data showed fewer than 100 people were on the minimum trainee wage, and the Jersey Employment Forum backed the move. 

Redundancy auto increases

Companies paying out for redundancy should be aware the maximum statutory redundancy cap for a week’s pay now automatically increases each year based on state figures published every summer. Currently, the cap is £920 per week. Every September the cap will increase based on the mean average earnings of Jersey employees.

WorkWell voluntary scheme 

In October 2023, Jersey introduced a new advice and support service, WorkWell, to help workers that have been signed off get back to work. Any Jersey worker can access the service via a GP referral if they’ve been signed off for over four weeks. 

WorkWell was designed with mental health and musculoskeletal conditions in mind. The voluntary service can approve a ‘Return to Work Plan’ for employees to undertake paid work while still getting Short Term Incapacity Allowance (STIA)

The idea behind the scheme is a preventative measure: by introducing a phased transition to work, employees can better manage their health conditions and avoid taking longer absences from work.

The scheme has advice for employers on how Return to Work Plans can be accounted for in the workplace, but you can always consult a legal expert for a comprehensive review.

Parental bereavement leave

This March saw Jersey introduce parental bereavement leave for the first time. Working parents are now entitled to two weeks’ unpaid leave if a child under the age of 18 passes away, including stillborn births after 24 weeks of pregnancy.

Parental bereavement leave can be taken in up to three separate periods without any notice needed from the employee. It’s also a ‘day one’ entitlement, so any parent qualifies for the leave as soon as they join a workplace.

The entitlement will be available to either parent, including adoptive or surrogate parents, or a parent’s partner involved in the child’s upbringing. Any parent using the leave will also qualify for a benefit payment, currently up to £920 a week. 

Employers should look to amend their compassionate leave policy to include this leave. If you need specialist advice, get in touch. 

Looking ahead at upcoming employment law changes 

Employment law rarely stays still, and 2024 is shaping up to be a busy one for new policies, amendments and worker rights. Here’s a quick summary of the upcoming consultations and legal changes in Jersey’s employment law scene.

Right to formalise a working pattern 

Jersey is looking at improving the rights of zero-hours workers in the Island and has passed some amendments to the laws here that will come into force later this year.

The main change is that any worker that’s been in a settled work pattern for over six months will be able to request that the work pattern is formalised into an employment contract. It’s designed to protect zero-hours workers but can impact anyone working any kind of pattern shift work.

Once a written request is submitted, the employer will have four weeks to respond. Grounds to refuse include a detrimental impact on the business, reasonable grounds that the work pattern will change in the next four weeks, or that the worker’s employment will end shortly.

Flexible working requests 

Jersey already has flexible working established as a statutory right, but the number of times an employee can request it is changing. Workers will have the right to request a change for their work hours, starting and finishing times, and place of work to either hybrid or remote, twice a year.

This will be an upgrade from the current rule, which states only one request can be made every 12 months. It’s a win for employees who need flexibility with young children or caring needs, but employers should consider their positions carefully ahead of the amended law coming into effect.

The far horizon 

Several other legal updates have been talked about, but don’t have a confirmed timeline. With regards to Jersey’s first whistleblowing laws, the state has committed to drafting legislation by the end of 2024.

St Helier deputy Max Andrews has put forward a proposal for notice periods to increase on a scale up to 12 weeks if a worker is continuously employed for at least eight years. For those in a job for less than two years, the notice period for redundancy would rise to four weeks under the proposals. We’ll wait and see what comes of it.

Secondary pensions are also tabled for the future. Currently there are no mandatory pensions in Jersey, and they come down to the individual employer, with employees choosing to contribute or not. A secondary pensions regime that needs a mandatory pension contribution both brings Jersey law in line with the UK and helps tackle the aging population crisis on the island.

Finally, Employment Forum Jersey is considering changes to the employment tribunal system. There’s a particular focus on remedies for discrimination complaints, which are currently capped at £10,000.

The Forum is considering whether to increase that cap and has several other models to base it around: either Guernsey, which is capped at six months’ pay, Ireland at two years’ pay or the UK, where damages are unlimited, all provide useful frameworks.

Gender Pay Gap Reporting 

Gender pay gap reporting is back on the radar in Jersey. Before Covid-19, the Government was considering mandatory gender pay gap reporting if more private sector employers didn’t voluntarily publish their data.

A proposition is being debated this month to put in place a firm timetable to push for voluntary, and thereafter potentially mandatory, pay gap reporting for any Jersey business that employs 50 or more employees.

Final thoughts 

These changes, both already here and upcoming, are aimed at bringing Jersey’s employment law further in line with the UK and protecting workers’ rights. It’s a step in the right direction, but employers should always take legal advice if they have any concerns.

If you need help keeping up with the latest employment updates or are worried about how any new rules might impact on your business, get in touch with our team today to put your mind at ease.