KR HR & TRAINING NEWS ARTICLES

With the general election a week away and opinion polls predicting a Labour victory, employers need to give consideration to what a change in government would mean for employment law and rights.  Labour have proposed 60 changes in employment law with the aim to enhance worker rights and wellbeing creating a fairer and more supportive work environment for employees.

Labour’s employment changes will have a significant impact and cost on every business and employers need to be prepared for the impact of the potential new legislation and be aware of key action points. It’s also worth taking time to understand the detail (where known) behind the headlines to avoid any unnecessary panic.  

The key proposals are:

• Statutory Sick Pay from day one of absence
• Unfair dismissal a day one right?
• Further revision to the Flexible Working as a day one right
• Raise wages for workers by removing age bandings
• A ban on zero hour contracts
• A right to switch off
• Family-friendly

Statutory Sick Pay (SSP) from Day one of Absence

Labour plans to make SSP payable from the first day of absence aims to provide immediate financial support for employees who fall ill.  Currently SSP is paid after three consecutive days of absence and employers cannot claim SSP from the government.  Therefore, introducing SSP from day one of sickness will come as an additional cost to businesses plus SSP will extend to all types of workers (employees, self-employed and workers). 

Likely Action Required:

Update contracts and handbooks.  Ensure the business has a robust sickness absence policy in place and managers are trained in managing all sickness effectively to minimize absences.  irrespective of duration. Using return to work meetings after every absence can help reduce recurrent short-term absences.

Unfair dismissal a day one right

Currently employees need two years’ service to be able to claim unfair dismissal however, Labour plan to remove the current service requirement giving employees a day one right to bring an unfair dismissal claim.  Under this legislation there will be a higher risk with each dismissal although probationary periods will take on a bigger significance and still give the opportunity to dismiss an underperforming or unsuitable employee. 

Likely Action Required: 

Review dismissal policies.  Ensure probationary periods are tightly managed and review methods for monitoring employee performance.  Consider introducing an “induction manual” to include formal regular review records throughout the probationary period.   Look at probationary period clauses ensuring this includes the right to dismiss on grounds of suitability.

Further revision to the Flexible Working as a day one right

Labour plan to make flexible working the default for all workers from day one except where it is not reasonably feasible.  Since April 2024 employees have a day one right to apply for flexible working however, businesses have the right to reject the application on business grounds.  Labour’s proposal however could create recruitment challenges as employers may offer a full-time role, only for the new starter to demand a different flexible working pattern from day one. 

Likely Action Required:

Rethink job design as roles may need to be made more flexible and interviews may become more of a negotiation exercise.

Raise wages for workers by removing age bandings

Currently rates are age dependent (under 18 = £6.40, 18-20 year olds = £8.60).  Labour plan to remove these age bandings increasing the rate for apprentices and younger staff.

Likely Action Required:

Ensure correct wages are paid to those affected.

Ban “exploitative” zero hours contracts

Labour intends to ban “exploitative” zero hours contracts and ensure that anyone working regular hours for at least 12 weeks has the right to a regular contract. The detail will depend on how “exploitative” is defined. Unpaid internships will also be banned. 

Likely Action Required:

Review all employees on zero hour contracts  and reissue with a regular contract where appropriate.

Right to “switch off”

Workers will have a new right to “switch off”, aiming to allow individuals to disconnect from work and only be contacted within agreed hours. This may have a positive impact on mental health.

Likely Action Required: 

A new right to switch off policy will need to be introduced and managers must be mindful of not contacting employees outside of working hours.

Family-friendly

Parental leave will become a day-one right and introduce the right to bereavement leave.  Consideration is being given to the recently introduced carers leave to be paid.

Likely Action Required:

Update family friendly leave policies/contract clauses

Will these changes come into force with immediate effect?

Although these changes are currently proposals, Labour stated they will introduce an Employment Bill within 100 days of being elected.  Consequently, businesses do need to give serious consideration to these potential key changes as some are highly likely to come into  force.  We will update our clients with further information once the legislation is finalised.