Enterprise Act 2016

The 4th of May 2016 saw the Royal Assent of what is now the Enterprise Act 2016 (the “Act”). The Act covers a wide range of topics, which the government intends will help secure the economic growth of the UK. In so doing, the Act includes the privatisation of the Green Investment Bank; imposes a legal obligation for insurers to pay out claims within a reasonable time and increases the quality and quantity of apprenticeships. 

Under the Act, the government had intended that powers to extend Sunday trading hours would be devolved to councils across England and Wales, but this was rejected when put to a vote in the House of Commons. However, the Act will strengthen a shop worker’s right to object to working additional hours (in excess of their regular contracted hours) on Sundays.  

Where a worker has the right to object, employers are required to give those workers a written statement detailing how they can opt out.  To object, shop workers in small shops are required to give one months notice and those in large shops (exceeding 280 square meters), will need to give three months notice. If a shop worker is dismissed for refusing to work additional hours on a Sunday, following their notice of objection, they are regarded as unfairly dismissed; as would those who are dismissed for giving, or proposing to give, a notice of objection.  

Businesses are naturally one of the most focused areas of the Act, particularly in the creation of the Small Business Commissioner (“SBC”).  It is intended that the SBC will provide information to small business, including about resolving disputes and agreeing contracts.  The SBC will also consider some complaints related to payment issues and make recommendations. The position of SBC will be appointed by the Secretary of State, who may also appoint any number of Deputy Commissioners. 

It appears that much of this Act is to ensure that the government actually makes some of the commitments they claimed they would do in their pre-election manifesto.  If the Act is successful then this will reportedly be to the benefit of all (regulators, businesses, employers and workers). It will be interesting to see if intention becomes reality.