The new Labour government has proposed several employment law changes which could have a significant impact on your employment practices and policies. Several bills around workers rights and employment law issues were announced in the Kings Speech and will be debated and scrutinised over the coming weeks. Whilst details and timeframes for implementation aren’t yet available, we know change is coming. There are steps that you can take, as an employer, to prepare for the coming reforms and the Pure Human Resources team are here to support you with any changes you may need to make.
We review some of the pledges made by the new government and consider how this affects you, as employers.
The pledge
Day One right for employees not to be unfairly dismissed and extend the time limit for lodging employment tribunal claims from three to six months. Currently, employees do not have protection from unfair dismissal until they’ve been employed for 2 years.
What does this mean for employers?
Ensure your management team are well-trained in your disciplinary, grievance and capability procedures. You no longer have that 2 year cushion protecting you from unfair dismissal claims if you fail to follow procedures fully and correctly.
Use your probation periods more effectively. Employers would still be able to dismiss an employee during or at the end of a probationary period provided there’s a fair and transparent process. Use this opportunity to be sure the employee is fulfilling their role to the right standard and is right for your business, and take appropriate action if not.
The new government also proposes making it unlawful to dismiss employees within six months of return from maternity leave, except in specified circumstances. Again, it’s important to ensure your management team are fully aware of these changes to avoid making potentially costly and reputation-damaging mistakes.
Pure Human Resources can support your business with specific cases, along with developing your staff to deal effectively with performance management and related HR procedures through our open courses: see our course calendar for details of forthcoming training dates.
The pledge
Only permit dismissal and re-engagement (“fire and rehire”) as part of a restructuring where there’s genuinely no alternative for the business to remain viable
What does this mean for employers?
There will be a strengthened code of practice (to be announced) that will strengthen the boundaries and reduce the scope for employers to use this method of changing terms.
The pledge
Ban on zero-hours contracts.
What does this mean for employers?
Employers will need to replace all zero hour contracts with new ones that reflect the hours that are regularly worked, based on a twelve-week reference period.
If this applies to you, don’t panic! We can help with these calculations and draft up new compliant contracts for you.
The pledge
Make flexible working the default from day one, except where it’s not reasonably feasible
What does this mean for employers?
If you haven’t already embraced flexible working in your business, now is the time. Employees already have the right to request flexible working, but by making it the default position, you’ll need very good reasons for it not to happen. However, flexible working comes in many forms (hybrid working, condensed hours, part time working, and flexitime, to name a few) and won’t all be feasible for all job roles and/or types of employers.
Flexible working can bring many benefits. To understand the benefits of embracing flexible working, just consider how much a flexible approach appeals to job applicants. Hybrid working has become the norm within many businesses now, given the enforced experience of remote working during COVID lockdowns and the technological improvements that have enabled work from a distance. Some candidates will not even apply if they do not see reference to hybrid working in a job advert. The wording from the government is to offer flexible working “except where it is not reasonably practicable” – the forthcoming legislation may provide more clarity in terms of what this actually means.
If you need support assessing how flexible working patterns could work in your business – get in touch.
The pledge
Implement a “right to switch off”
What does this mean for employers?
This could be a balancing act, particularly in line with the changes regarding flexible working. With a potentially increasing variety of working patterns amongst your employees and a move away from the standard ‘office hours’ – you will need to find a way to establish boundaries and get clarity for each employee on what constitutes their working hours, and thus also their non-working hours. Protect yourself by putting all agreements in writing so everyone is clear what has been agreed.
The pledge
Make parental leave a day one right and introduce a statutory right to bereavement leave
What does this mean for employers?
Employers will need to update their policies to reflect the new entitlements. Pure HR can help with this – just get in touch.
The pledge
Ban unpaid internships except when they are part of an educational or training course
What does this mean for employers?
If you currently offer unpaid internships, now is the time to consider how they fit with your people strategy. Do you need this resource to manage your current or future workload? If so, you’ll need to plan for an additional paid role. Are you using it as an opportunity to create a future employment pool of people with ‘real world’ experience? In which case you may want to consider paid student placements, apprenticeship schemes or similar.
The pledge
The new government intends to consult on plans to abolish the current three-tier framework for employment status and to move to a simpler two-tier framework, with individuals being classed as either workers (which would include those currently classed as employees or workers) or self-employed.
What does this mean for employers?
Review the status of those people who do work for you. If changes do happen, it could affect what rights various groups are entitled to. Some clarity about how the categories will be defined will be required, and Pure can help you to assess your people accordingly.
The pledge
Remove the lower earnings limit and the three-day waiting period for qualifying for statutory sick pay (SSP)
What does this mean for employers?
As well as having a financial impact, this will mean changes to sick pay policies and payroll processes. Employers are likely to see an increase in short-term sickness absences too, so having a robust absence management process in place to deal with frequent absences will become increasingly important to maintain attendance levels. Pure can help you re-draft the relevant policies and support you with any specific absence cases as they arise.
The pledge
Menopause Action Plans – large employers (ie with 250+ employees) will need to produce the Plans, outlining how they pledge to support employees through the menopause.
What does this mean for employers?
Very few employers have any kind of formal arrangements in place to support employees at what can be an extremely challenging time of life, so will be starting from scratch. This will affect the approach to many employment-related issues including dress codes, temperature regulation, recording absences that are related to menopause issues, and flexible working. And whilst small employers may not be obliged to implement an MAP, potential employees will in time expect some provision to be in place, so it will be good practice to have one anyway.
It can be daunting, staying on top of all the proposed changes, but Pure Human Resources are here to help. We’ll keep you informed and support you with any changes you may need to make. Sign up to our newsletter and follow us LinkedIn or simply give us a call to discuss what the changes mean for you.
