The Employment Rights Bill is a significant piece of legislation proposed in the UK aimed at enhancing workers’ rights and protections. Set to be introduced in late 2024, it includes several key measures designed to address modern employment challenges.
HR professionals are critical. As organisations navigate shifting policies and societal expectations, understanding the implications of these changes is essential. This article will equip you with the insights needed to adapt and thrive amidst uncertainty.
The Employment Rights Bill
It’s been three months since the election of the Labour government, and the Employment Rights Bill is set to introduce the most significant changes to UK employment law in decades. For SMEs, these reforms will require careful planning and adaptation. Here’s a brief overview of the key changes and how they may impact your business:
What you need to know:
1) Zero-Hour Contracts Labour plans to end exploitative zero-hour contracts, giving workers contracts that reflect their actual hours. If your business relies on casual or zero-hour workers, now is the time to review and update your contractual terms.
2) Additional Day-One Rights All workers will gain the right to parental leave, sick pay, and protection from unfair dismissal from day one. With probationary periods still in place, it’s essential to ensure your management team is equipped to apply policies fairly and effectively.
3) Statutory Sick Pay (SSP) Strengthening SSP will now be available to all workers, with the removal of the lower earnings limit and the three-day waiting period. This change could result in an increase in short-term absences, so be prepared for potential cost implications.
4) Enhanced Enforcement The new Fair Work Agency will focus on strengthening workforce rights enforcement. SMEs should ensure their employment practices are fully compliant with current legislation to avoid penalties or inspections.
5) Dismissal Protections for New Mothers The bill will include protections making it unlawful to dismiss a woman within six months of returning from maternity leave. Providing appropriate training for your management team will be crucial in avoiding potential disputes.
6) Flexible Working as the Default Flexible working will become the default from day one. This shift will require businesses to review their operations and policies to accommodate reasonable requests for flexibility.
7) Trade Union Enhancements Labour aims to simplify trade union recognition and repeal restrictive legislation. Businesses should stay up to date with these changes and consider the impact on workforce relations.
8) A Genuine Living Wage Though not part of the Employment Rights Bill, Labour is committed to introducing a ‘genuine’ living wage, with an update expected in the October budget. If your business pays staff the National Minimum Wage, now is the time to prepare for the financial implications.
What next?
For SMEs, changing employment law represents both challenges and opportunities. Start reviewing your policies, upskilling managers, and ensuring compliance to stay ahead of the upcoming changes.
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From the Employment Rights Bill to evolving Social Value requirements, staying informed and proactive, will ensure your team are ahead of the curve. We’re here to support you, offering obligation-free consultation to help you understand the requirements of your business and HR function.
