Jersey employment update: September 2024

With the summer holidays fading from view, we are looking ahead to a busy programme of changes to the employment law framework in Jersey.

Prompted in part by initiatives started by the previous government, a number of important new proposals are now set to be introduced by the current administration, with more on the horizon. If implemented, these would represent a shake-up to the existing regime, both for employees looking to enforce their rights and businesses looking to manage workforce risks.

We set out below a quick round-up of the key developments, which we'd be happy to discuss further now and in the coming months. We have also included a summary of other news relating to our team and the employment landscape in Jersey.

Pending legislative developments

Employment Forum recommendations

In June 2024, the Employment Forum submitted its findings in relation to a review of compensation limits under the existing employment law framework. You can read our summary of the Form's recommendations here.

On 1 August 2024, the Social Security Minister confirmed that she has accepted the Forum's recommendations. Drafting amendments to bring the necessary changes into effect are now expected before the end of the year.

Broken down by issue, the changes are as follows:

• Unfair dismissal: existing limits will remain for employees with up to five years' service, but employees with more than 10 years' service may be awarded up to 31 weeks' pay and those with 15 years' service up to 36 weeks' pay. The Tribunal will also have power to uplift the maximum award (at any length of service) by 25% to reflect poor employer conduct.
• Employment-related discrimination: the current limit on compensation for financial loss and/or hurt and distress will be increased from £10,000 per claim to a maximum of either £50,000 or 52 weeks' pay, whichever is the greater amount.
• Breach of statutory rights: the current limit for a breach of most statutory rights (for example, relating to flexible working or parental or adoption leave or entitlements to receive payslips and written terms and conditions of employment) is four weeks' pay. This will be increased to a maximum of eight weeks' pay in the most serious cases.
• Breach of contract claims in the Tribunal: at present, the Tribunal has jurisdiction to hear breach of contract claims worth up to £10,000 only. This will be increased to £30,000 or otherwise in line with the jurisdiction of the Petty Debts Court, allowing the Tribunal to determine higher value notice pay claims and potentially more bonus and incentives disputes.

Future changes to watch

Whistleblowing consultation

A longstanding gap in Jersey's employment and corporate governance regimes is the lack of statutory protection for employees and other persons who raise matters of public interest – otherwise known as whistleblower protection.

That position is now due to change. In July 2023, the parliamentary assembly voted in favour of the introduction of whistleblowing legislation, and the Employment Forum has been tasked with undertaking a consultation on the issue.

We expect to have details about the proposed structure and content of any new whistleblowing protection legislation by the end of the year.

Changes to Tribunal procedure

Alongside the compensation awards increases, a number of ancillary recommendations made by the Forum have also now been accepted by the Social Security Minister. These changes will be taken forward as part of a wider review of Tribunal procedure in 2025.

The changes include:

• Anonymisation of Tribunal judgments: we expect judgments will continue to refer to the parties by default, but the Tribunal will have a power to anonymise one or more of the parties depending on the circumstances, on the application of a relevant party.
• Costs awards in the Tribunal: we expect that the scope and application of a new costs regime in the Tribunal will be limited, and principally deterrent in effect. Nonetheless, the availability of costs awards to punish unreasonable or vexatious conduct will be a welcome addition to the Tribunal's existing case management powers.
• Time limit for responding to a Tribunal claim: the Minister has accepted that there is a mismatch between the 56-day deadline for claims to be brought and the 21-day limit for responding, and has agreed to increase the time limit to 28 days.

Written reasons for dismissal

The Social Security Minister has also decided to introduce a further change requiring employers to provide written reasons for dismissal (or allowing employees to request them, as in Guernsey). A drafting amendment will bring forward the proposed change.

Other potential areas for change

Government in Jersey is exercised by a Council of Ministers from across the parliamentary assembly. But with the minister responsible for employment policy appointed from the centre-left Reform Jersey, the pledges made by that party may be instructive as to potential further areas for change, and include:

• Qualifying period for unfair dismissal: Reform Jersey would reduce the qualifying service period for bringing an unfair dismissal claim from the current requirement for twelve months' service (the original requirement when the law was introduced was six months' service, but Reform Jersey do not say what the reduced period would be).
• An equivalent to the TUPE legislation: TUPE, a UK legal framework, creates an automatic transfer mechanism either when one business (or a part of it) is acquired by another, or there is a change in a provision of services that meets certain criteria, in order to avoid the staffing consequences (and potential redundancies) that would likely result. Currently, the position in Jersey is that parties to a transaction (or service provision change) bear their own staffing issues and liabilities, unless employee transfer arrangements are agreed to the contrary.
• Enhanced trade union protections and recognition: trade unions naturally play an important role in employee relations, but in Jersey their presence is largely seen in the public sector. There are existing provisions in Jersey (including under codes of practice) relating to union membership protection, registration and recognition, including for circumstances where an employer declines to recognise a union voluntarily. Reform Jersey's stated position is to better enable unions to operate and organise in any workplace.

Other news

• We are delighted to be welcoming Katie Phillips (Senior Associate) back from a period of maternity leave in October 2024.
• The weekly pay cap for statutory redundancy payments will increase to £1,000 (from £920) from 24 September 2024. This follows the publication of the Index of Average Earnings in Jersey, which confirmed that the mean average full-time equivalent employee wage in June 2024 was £1,000 per week.
• The island's minimum wage will increase to £13 per hour (from £11.64) on 1 April 2025. The rise is part of a staged transition to a minimum 'living wage' by April 2026. A £20m package of financial support measures is proposed to help employers adjust to higher staffing costs during the transition period (further details are expected shortly).
• Our recent work has included advice on the management of permanent health insurance and sickness absence cases, support with employment issues arising in the context of a business insolvency situation and acting for clients in various tribunal proceedings and interactions with government agencies (such as in the immigration and business licensing contexts).
• As a firm, we are preparing for a global Inclusion Week from 23 September, marked annually to celebrate and take action to create inclusive workplaces across our business. Colleagues from all jurisdictions will be invited to a range of sessions on topics such as mindful working practices, psychological safety and our anonymous speak-up channel.