Blog by By Shakira Joyner at Personology.
Throughout Labour’s campaign they promised to revolutionise the rights of employees with employment law changes that put employees first. After much hype, they’ve finally announced the changes they propose.
Published on the 10th October 2024, the ‘Employment Rights Bill’ intends to address insecure work, low pay, day-one rights and the exploitation of workers. Labour stated that “This document sets out the next steps we intend to make in our mission to effect change and make work pay.” As we all get to grips with this shake-up of the employment law landscape, we have provided below the key topics that employers needs to keep firmly on their radar.
Key Topics in the Employment Rights Bill
Day-One Rights & Unfair Dismissal
Removing the two-year unfair dismissal qualifying period and implementing a new statutory probationary period – likely to be nine months. There will be much more to say once the detail of the proposals become apparent in the consultation paper.
Statutory Sick Pay from the First Day
Starting statutory sick pay from day-one of illness (rather than day-four) and from day-one of employment. Also removing the lower earnings limit band for eligibility.
No More Fire & Rehire or Fire & Replace
Limiting employers’ ability to use fire and rehire, where employees are dismissed for failing to agree to a change in contract – automatically treating such dismissals as unfair. This is one of the measures that is likely to be controversial with business leaders who may not want to make significant business changes.
Diminishing Zero-Hours Contracts
Giving workers on zero-hours contracts or low number of guaranteed hours, the right to move to a guaranteed hours contract and ‘reasonable’ notice of shift changes. These measures are intended to give employees “a baseline level of security and predictability” and to deliver Labour’s pledge to “end one-sided flexibility’ in the workplace.
Flexible Working Rights from Day-One
A small but crucial change to the current flexible working rules. Making the request for flexible working a default day-one right for everyone – apart from when it’s not reasonably feasible – for a number of prescribed reasons as set out in legislation.
Extension of Family Leave Provisions
Enhanced maternity protections, to include an entitlement to maternity pay from day-one of employment – removing the current 6 month provision. And, a proposed prohibition on dismissing new mothers for an extended protected 6 months following their return to work.
Day-One Parental & Paternity Leave
Making parental leave and paternity leave day-one rights – removing requirements for one year or 26-weeks of service respectively.
Addressing Third-Party Harassment
Introducing an entirely new provision requiring employers to not permit harassment from a third-party, such as clients, customers or suppliers.
Protection Against Sexual Harassment
The Employment Rights Bill proposes that an allegation of sexual harassment will be a ‘protected disclosure’ for the purposes of whistleblowing legislation, and also appears to reintroduce full employee protection against harassment by third parties.
Equality Action Plans for 250+
Future Regulations may require employers with more than 250 employees to produce ‘Equality Action Plans’ on gender (including the gender pay gap) and menopause.
Bereavement Leave from Day-One
Introducing a new day-one right that gives employees at least one week of bereavement leave. Currently, the right to bereavement leave is limited – applying only to parents who have lost a child.
Employment Status Changes
Currently, there are three tiers of workers for the purposes of employment law (employees, workers and the self-employed) and two for tax (employed and self-employed). In recent years, high-profile legal cases have determined whether someone is genuinely employed and therefore eligible for employment rights such as holiday pay and the minimum wage.
Trade Union Rights
Making it easier for trade unions to take action and forcing employers to inform workers of their right to join a trade union.
‘Right to Disconnect’ Snoozed
Snoozing on the ‘Right to Disconnect’ – despite this being one of Labour’s hottest topics, they’ve not included this new right, but do still plan to address it in the future.
In Summary What Will the Proposed Employment Law Changes Mean for Businesses?
• Employees will be granted greater employment rights.
• Individuals will be more secure in their work.
• Employees will be more likely to seek redress from employers.
• Additional costs for businesses – the cost of employing people will increase.
• For businesses, employment will become more inflexible.
• Enforcement will be enhanced to make laws more effective.
Changes still need to undergo consultation and parliamentary approval before being made law. If the proposed reforms are implemented, businesses will need to prepare and ensure compliance by the enforcement date.
When these changes do become law, every employer will need to understand and implement these changes within their businesses. Failure to comply with new employment laws will put businesses at serious risk, should a legal claim be upheld as a result of employment law changes.
Being proactive and making steps towards implementing these employment law changes early, will ensure smooth and seamless transition and demonstrate that you’re a good employer that puts employee welfare first – that’s what employees voted for! Call Personology to get ahead with strategic and proactive HR.
The post Summary of Proposed Employment Law Changes – October 2024 first appeared on HR News.