With a new labour government in power, the UK is seeing some important changes in employment law. For small businesses, staying on top of these changes is crucial. New rules can mean new opportunities, but they can also mean new challenges.
In this article, we'll outline the key changes in UK employment law and explain what they mean for small businesses. From adjustments in minimum wage and employee rights to modifications in working hours and contractual obligations, we'll help you understand the new landscape so you can keep your business compliant and thriving.
Whether you are an employer, manager, or HR professional, staying informed about these developments will help you maintain compliance, protect your business, and support your employees during this period of transition.
Stay tuned to learn how to navigate these changes and keep your business running smoothly.
🚀 Day One Rights
Immediate Entitlement: The Labour Government plans to eliminate the qualifying periods for basic rights such as unfair dismissal, sick pay, and parental leave. These will become day one rights. While probationary periods will still allow some flexibility for dismissals, this change could lead to increased tribunal claims.
👥 Single Status of 'Worker'
Unified Rights: The distinction between employees and workers will be removed, meaning all staff will receive the same basic rights and protections.
🛡️ Strengthening Existing Rights
Enhanced Protections: Labour intends to strengthen protections for pregnant workers, whistle-blowers, workers made redundant, those under TUPE processes, and those making grievances. The School Support Staff Negotiating Body will be reinstated.
💷 Increased Wages
Living Wage: The National Living Wage will rise, with the Low Pay Commission considering the cost of living in their recommendations. Certain unpaid internships will be banned, sleep-over hours in sectors like social care will be paid, and laws on pay for travel time in sectors with multiple working sites will be enforced.
💼 Sick Pay
Improved SSP: Statutory Sick Pay (SSP) will be available to all workers without the current waiting period, and the rate will increase to provide fair earnings replacement.
📊 Pay Gaps
Reporting Requirements: Firms with more than 250 employees will be required to report on ethnicity and disability pay gaps.
🚫 Harassment Prevention
Safe Workplaces: Employers will be required to prevent workplace harassment, including from third parties, and take all reasonable steps to prevent sexual harassment.
🕒 Flexible Working
Default Flexibility: Flexible working will become the default for all workers from day one, except where it is not reasonably feasible.
👨👩👧 Family Friendly Policies
Enhanced Leave: Parental leave will be a day one right. A new right to bereavement leave will be introduced, and it will become unlawful to dismiss pregnant employees for six months after their return from maternity leave, except under specific circumstances.
🔌 Right to Disconnect
Work-Life Balance: Labour will introduce the right to 'switch off,' preventing work from intruding on personal time, especially for remote workers.
👨⚕️ Caring Responsibilities
Carer's Leave: Labour will review the current unpaid Carer’s Leave with the potential to make it paid.
🔄 Zero-Hours Contracts
Fairness in Flexibility: While zero-hours contracts won't be entirely abolished, 'one-side flexibility' will be banned. Workers with regular hours for 12 weeks or more will be entitled to a regular contract. Workers will also get reasonable notice of shift changes and compensation for canceled shifts.
🚫 Fire and Rehire
Stronger Protections: Labour will strengthen the code of practice and adapt unfair dismissal and redundancy legislation to prevent workers from being dismissed for not agreeing to worse contracts.
🤝 Trade Union Laws
Union Rights: The right of trade unions to enter workplaces will be strengthened, and the process for union recognition will be simplified. Employers will also need to inform workers of their right to join a union in their written contracts.
⏳ Enforcement Rights
Extended Claim Periods: The time limit for bringing Employment Tribunal claims will be extended to six months, which could lead to more tribunal claims.
💁 Tips Distribution
Fair Tips: New laws will ensure that hospitality workers receive their tips in full and have a say in how tips are allocated.
🌸 Menopause and Wellbeing
Support Plans: Large employers will need to produce Menopause Action Plans and support workers' long-term physical and mental health, including those with long Covid. There will also be guidance for smaller employers.
🤖 Artificial Intelligence
Work and AI: The government will examine the impact of AI and new technologies on work, jobs, and skills, in collaboration with various stakeholders.
Conclusion
The proposed changes by the Labour Government aim to create a fairer and more supportive working environment. While these changes may require adjustments in how small businesses operate, they also offer an opportunity to improve employee satisfaction and productivity.
Stay compliant, stay ahead!
We're a small yet multi-award winning team on a mission to empower leaders of small businesses to thrive with better teams.
As a People Development & HR consultancy, we are here to assist you in navigating these changes. From reviewing contracts and updating policies to ensuring legal compliance, we can help your business adapt seamlessly to new employment laws. Contact us today to discuss how we can support your business through these legislative shifts. You can reach us via team@breenassociates.co.uk or call us on 01279 871 413.
Written by Joanna Breen
Joanna is a high-achieving senior leader with extensive experience in HR and Business Leadership across different industries and sectors. She advises executive & leadership teams at board level. Over the course of her 25 year career, she has made significant achievements in Business & HR Strategy, HR Operations & Shared Services, Transformational HR and HR Systems Implementation. She is a fully qualified and accredited Corporate, Executive, Leadership, Personal Performance, and Life Coach. Joanna has been coaching for more than 20 years.
Comments