Hot Topics Brace for Labour’s 100-Day Employment Law Overhaul – How Can SMEs Best Prepare For Radical Workplace Changes?
By Kimberly Bradshaw (CEO, Spotlight HR.) August 2024.
The HR landscape is proving just as unpredictable as this year’s summer. Following Labour’s recent election win and the King’s speech, one thing we can all be certain about is that significant employment law changes are on the horizon in the coming 100 days.
Although specifics and timelines remain uncertain, as always, we are dedicated to keeping our clients informed, assisting you through possible legislative shifts, and laying out the pace of change that will best protect your businesses.
Remaining apolitical, this month’s edition seeks to update you on what might happen and what is already underway to keep you informed, agile, and change-ready. Key areas to watch for include:
- Removal of the lower earnings limit on Statutory Sick Pay
- Creation of a Single Enforcement Body
- Aim to review parental leave and move towards a single-worker status
So, let’s remove the jargon and get into the nitty-gritty of what to expect in the next 100 days to keep your workforce match fit, informed, and prepared.
Remember though, that we are always available to discuss how these changes could impact your business one to one. Let’s chat.
Anticipating Labour’s Employment Law Reforms: The first 100 days in summary
With Labour’s recent election victory and the King’s speech, we eagerly await forthcoming law changes. While specifics and timelines are still unknown, we are committed to keeping our clients informed and guiding you through the complexities of new legislation step by step.
The new Government has pledged to introduce significant legislation within its first 100 days, starting with a comprehensive consultation on its New Deal. However, turning proposals into legally binding statutes involves navigating multiple parliamentary stages and potential delays from debates and amendments.
Key priorities include an Employment Rights Bill, removing the lower earnings limit on Statutory Sick Pay and establishing a Single Enforcement Body.
Recognising the complexity of some reforms, the Government plans thorough consultations, including a move towards a single-worker status and a parental leave review within its first year. These initiatives will be developed with input from experts, employers, and trade unions. Let’s take a closer look.
Labour’s Radical Employment Law Reforms: Day-One Unfair Dismissal Protection
We know Labour is going to make it more difficult to dismiss staff – It can already be a challenging process for employers – So we are anxiously waiting to hear about this and will keep you posted.
Labour’s proposed employment rights bill introduces a, ground-breaking, day-one right to protection from unfair dismissal for all workers. Announced in their “Plan to Make Work Pay” ahead of the election, this legislation also promises day-one entitlements to parental leave, sick pay, and flexible working. To reassure employers, Labour clarified that fair dismissals for capability, conduct, redundancy, or probationary failures will still be permissible. This change aims to prevent unjust firings and enhance workplace standards.
This is a revolutionary shift in unfair dismissal law, marking the most significant update in over 50 years. It could pressure employers to make more cautious hiring decisions, potentially hindering recruitment. Clarity on the specifics of probationary periods and their management is expected in the autumn, which is crucial for adapting to these impending changes – So stay tuned.
Your take home: Hiring the right people and having watertight contracts to protect both you, and your people, should be a critical consideration. It’s important to stay ahead of these changes. Contact us now to understand their potential impact on your business and ensure you are best prepared for the future. Let’s chat.
Government Clamps Down on “Fire and Re-Hire” Tactics – what you need to know
The UK government has introduced a new statutory Code of Practice to address “fire and re-hire” practices, where employers dismiss and rehire employees under less favourable terms.
The Code aims to curb employer mistreatment while balancing business flexibility. Following a consultation period from January to April 2023, the government published an updated draft Code outlining employers’ responsibilities when altering employment terms.
Pending parliamentary approval, the Code will empower employment tribunals to increase employee compensation by up to 25% if employers fail to comply. Some endorse these changes, emphasising the importance of seeking employee agreement and viewing “fire and rehire” as a last resort. Best practice solutions would advocate early and meaningful consultations to find mutually agreeable solutions.
Your take home: For businesses, the new Code necessitates more collaborative negotiations with employees and could result in higher penalties for non-compliance.
If you need more advice on how to mitigate your risk, please do get in touch. Let’s chat.
Tribunal in focus: Caution Needed with Fixed-Term Contracts
In this notable case, the Employment Tribunal, backed by the Employment Appeal Tribunal, ruled that it was objectively justified for a consultant’s fixed-term appointment to remain in place, even after four years of successive fixed-term contracts.
This decision underscores the importance of careful management and clear terms when using fixed-term contracts to avoid potential disputes over employment status. The case, Lobo v University College London Hospitals NHS Foundation Trust, serves as a critical reminder for employers to navigate fixed-term contracts prudently. You can read the full case here.
Your take home: For SMEs, this case underscores the necessity of detailing clear terms and careful management of fixed-term contracts to avoid disputes and ensure compliance.
If any of the legislation detailed above has raised questions or uncertainties, remember that we offer FREE initial advice—which, in many cases, is enough to resolve issues. Let’s chat.
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