Proposed UK Employment Law Changes and How Employers Can Prepare

Following their election in July of this year, the new UK government has pledged to deliver “the biggest upgrade to workers’ rights in a generation”.

A key part of this commitment is the forthcoming Employment Rights Bill, which is expected to be introduced by the end of October 2024. While these changes are not yet finalised, they could bring significant updates to employment practices. It’s important for employers to stay informed on the proposed UK employment law changes and be ready to adjust accordingly.

So, what can employers expect, and how can they best prepare?

Here is a breakdown of the proposed UK employment law changes:

Employment Rights Bill

Ban on “Fire and Rehire”

• What’s Proposed: The practice of “fire and rehire” will be subjected to stricter regulations. While restructuring will remain an option, it will now be more regulated.
• How to Prepare: Begin by seeking legal advice to understand how these new rules will impact your restructuring processes. It’s also crucial to update your management training to ensure your team can handle dismissals and redundancies in compliance with the new regulations.

Ban on Zero-Hour Contracts

• What’s Proposed: Workers will gain the right to request regular hours, receive advance notice of shifts, and be compensated if shifts are cancelled.
• How to Prepare: Review your existing zero-hour contracts and assess whether they still meet your operational needs. Enhance your resource planning to provide proper notice for shift changes and minimise financial penalties associated with last-minute cancellations.

Parental and Sick Leave

• What’s Proposed: Statutory Sick Pay and parental leave will be available from the first day of employment. Additionally, it will be illegal to dismiss a woman within six months of her return from maternity leave.
• How to Prepare: Update your parental leave and sick pay policies to reflect these changes. Ensure your management team is trained to handle these new protections appropriately and in line with the updated laws.

Protection from Unfair Dismissal from Day One

• What’s Proposed: The two-year service requirement for making unfair dismissal claims will be removed, granting immediate protection to new employees.
• How to Prepare: Review the performance and conduct of employees with less than two years of service to identify any potential issues. Train your managers on handling probation periods and dismissals fairly, and ensure that performance reviews and documentation are thorough and up-to-date.

Flexible Working from Day One

• What’s Proposed: Employees will have the right to request flexible working arrangements from the start of their employment, with some exceptions.
• How to Prepare: Reevaluate your current flexible working policies and consider how to accommodate these requests effectively. Preparing for this change will involve adjusting your approach to work arrangements and ensuring that flexible options are readily available.

Equality (Race and Disability) Bill

Expanded Equal Pay Rights

• What’s Proposed: Equal pay rights will be extended for ethnic minorities and disabled individuals.
• How to Prepare: Conduct equal pay audits to identify and address any disparities within your organisation.

Ethnicity and Disability Pay Gap Reporting

• What’s Proposed: Companies with 250+ employees will need to report on ethnicity and disability pay gaps.
• How to Prepare: Audit your pay structures and implement measures to address any gaps. Regular monitoring and reporting will help maintain fairness and transparency in your compensation practices.

Right to Switch Off

• What’s Proposed: Employees will gain the right to disconnect from work outside of their designated working hours, with employers prohibited from contacting them during these times.
• How to Prepare: Assess how this new right might impact your operations and employee wellbeing. Develop strategies to manage communication and work expectations to ensure compliance while supporting employee work-life balance.

Support for Menopause

It is estimated that around 8 out of 10 women go through menopause while they are still working. Further reports find that three out of four experience symptoms, with one in four facing symptoms significant enough to impact their work negatively. As such, the government has pledged to offer more support for menopause.

• What’s Proposed: Companies with 250+ employees will need to report on how they plan to support employees experiencing menopause. Government guidance will also be released for employers on how they can better manage workplace temperatures, uniforms, and leave related to menopause.
• How to Prepare: Develop a comprehensive plan to support employees through menopause, including adjustments to workplace conditions and leave policies. Communicate this support clearly to your team and integrate it into your overall employee support strategies.

The introduction of the proposed UK employment laws will bring considerable adjustments to how you manage your workforce. Staying up-to-date with these changes and being ready to adapt your practices accordingly is essential. For more content like this and to stay informed about the latest updates, follow our newsletter.

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SOURCES:

People Management:

• What does the employment rights bill mean for HR? [https://www.peoplemanagement.co.uk/article/1883320/does-employment-rights-bill-mean-hr]
• Labour’s Plan to Make Work Pay: How might changes to fire and rehire, redundancies and TUPE impact employers? [https://www.peoplemanagement.co.uk/article/1888025/labours-plan-work-pay-changes-fire-rehire-redundancies-tupe-impact-employers]
• Labour’s Plan to Make Work Pay: Family-friendly policies [https://www.peoplemanagement.co.uk/article/1885315/labours-plan-work-pay-family-friendly-policies]
• Labour’s Plan to Make Work Pay: Equality [https://www.peoplemanagement.co.uk/article/1884756/labours-plan-work-pay-equality]

Financial Times – UK employers to retain right to place new hires on 6-month probation [https://www.ft.com/content/c399f7e9-7a31-4a3d-b964-8baf7fab596e]

Local Government Association – Menopause factfile [https://www.local.gov.uk/our-support/workforce-and-hr-support/wellbeing/menopause/menopause-factfile#:~:text=According%20to%20the%20Faculty%20of,ages%20of%2040%20and%2060.]

BBC – Switching off from job boosts productivity – No 10 [https://www.bbc.co.uk/news/articles/cn4711jg34vo]