Governments Plans to Update Employment Rights
With a new Labour Government in place, and following the King’s Speech, we know that this will bring changes to employment law but what does this mean for you as Employers?
Below are the initials pledges from the Labour Government however, it is not yet exactly clear which date these changes will take effect, however with the 100-day pledge given, this is looking to be roughly the end of October for some changes and updates on others. We will keep you updated as we know more.
All of the proposed changes are summarised below:
Day-one rights: Remove qualifying periods for basic rights like unfair dismissal (the 2 year’s service requirement), sick pay (the first 3 waiting days), and parental leave (26 week service requirement) so they become day-one rights.
Single status of “worker”: Remove current distinction between employers and workers so that all workers are afforded same basic rights and protections, eg sick pay, holiday pay, parental leave, protection against unfair dismissal, etc.
Strengthen rights: Strengthen existing rights and protections, including for pregnant workers, whistleblowers, workers made redundant, workers subject to TUPE processes and those making grievances; and encourage employers to sign up to “Dying to Work” charter to support workers with a terminal illness.
Self-employment: Be given a right to a written contract.
“Don’t Panic Yet! The devil will be in the detail, which will be around the end of October, and we are here to help prevent it turning into your worst Halloween Nightmare 👻 ”
Raise wages for workers: Remove age bandings used in current system; ensure travel time in sectors with multiple working sites is paid; act on “sleep over” hours in sectors like social care; create Fair Pay Agreements in adult social care; and ban unpaid internships except as part of education/training course.
Sick pay: Strengthen Statutory Sick Pay (SSP), make it available for all workers and remove the 3 day waiting period. Rate to represent fair earnings replacement and removal of requirement for employees to meet the ‘Lower Earnings Limit’.
Tips: Strengthen the law to ensure hospitality workers receive their tips in full and workers decide how tips are allocated.
Pay gaps: Publication of ethnicity and disability pay gaps to be mandatory for firms with more than 250 staff.
Harassment: Require employers to create and maintain workplaces and working conditions free from harassment, including by third parties.
Flexible working: Make flexible working the default right from day one for all workers except where it is not reasonably feasible.
Family-friendly: Make parental leave a day-one right; introduce right to bereavement leave; make it unlawful to dismiss pregnant employees for six months after return from maternity leave except in specific circumstances.
Caring responsibilities: Review implementation of carer’s leave and examine benefits of introducing paid carer’s leave.
Zero-hours contracts: Ban “one-sided” flexibility; anyone working regular hours for 12 weeks or more will gain right to a regular contract to reflect hours worked; and all workers to get reasonable notice of any change in shifts or working time, and recompense for cancelled shifts.
Fire and re-hire: Improve information and consultation procedures by replacing statutory Code of Practice introduced by current Government with a stronger one; and adapt unfair dismissal and redundancy legislation to prevent workers being dismissed for not agreeing to a worse contract.
“Commercially, these changes will be tough for SMEs🤯 so start considering any financial and commercial impact as soon as you can! ”
Wellbeing: Support wellbeing of workers and their long-term physical and mental health; and assess whether existing regulations and guidance are adequate to support and protect those experiencing the symptoms of Long Covid.
Menopause: Require large employers with more than 250 employees to produce Menopause Action Plans.
Right to switch off: Introduce a new right to disconnect and protect workers from remote surveillance.
Artificial intelligence (AI): Work with workers, trade unions, employers and experts to examine what AI and new technologies mean for work, jobs and skills.
Trade unions: Strengthen trade union right of entry to workplaces; simplify process of union recognition; strengthen protections for trade union reps; and new duty on employers to inform workforce of right to join a union in their written contract.
Enforcement rights/tribunal claims: Extend time limit for bringing employment tribunal claims from three months to six months; simplify enforcement of equal pay; and establish a single enforcement body to enforce worker rights.
Actions To Consider:
Keep an eye out for more of our updates
Update Contracts of Employment
Update Employee Handbooks / Policies
Create New Contract types where needed
Create New Polices where needed
As always, we will keep you updated as more information is released and for those on our retained service you don’t need to worry as we have got you covered with the ongoing document and compliance reviews as part of your package.
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