Three Months Post-Election
Let’s explore the changes coming the the UK labour market, and the Impact it will have on HR functions within SMEs
the key changes & how they impact businesses:
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. What is the Employment Rights Bill aiming to achieve with these changes?
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. What is the Employment Rights Bill’s impact on day-one rights?
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. What is the Employment Rights Bill’s approach to SSP?
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. What is the Employment Rights Bill’s role in enhancing enforcement?
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. What is the Employment Rights Bill’s stance on dismissal protections?
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. What is the Employment Rights Bill’s influence on flexible working?
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. What is the Employment Rights Bill’s effect on trade unions?
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 is the Employment Rights Bill’s connection to the living wage?
For SMEs, this new era of employment law represents both challenges and opportunities. Start reviewing your policies, upskilling managers, and ensuring compliance to stay ahead of the upcoming changes. What is the Employment Rights Bill’s overall impact on SMEs?
Mental Health and Wellbeing Initiatives
The Labour government is also placing a strong emphasis on mental health and wellbeing in the workplace. SMEs will need to implement comprehensive mental health policies, including providing access to mental health resources and training for managers to recognise and support employees facing mental health challenges. This proactive approach can lead to a more engaged and productive workforce. What is the Employment Rights Bill’s role in mental health initiatives?
Increased Focus on Diversity and Inclusion
The new legislation will encourage businesses to adopt more robust diversity and inclusion practices. This includes mandatory reporting on diversity metrics and implementing strategies to promote a more inclusive workplace. SMEs should start by conducting diversity audits and setting clear, achievable goals to enhance workplace diversity. What is the Employment Rights Bill’s impact on diversity and inclusion?
Apprenticeship and Training Programs
To address skill shortages and promote career development, the government will introduce incentives for businesses to offer apprenticeships and training programs. SMEs can benefit from these initiatives by upskilling their workforce, which can lead to increased productivity and innovation. It’s essential to explore available grants and support to maximize these opportunities. What is the Employment Rights Bill’s influence on training programs?
Environmental Sustainability Requirements
Labour’s commitment to sustainability will also impact employment practices. SMEs will be encouraged to adopt environmentally friendly policies, such as reducing carbon footprints and promoting green practices within the workplace. This shift not only aligns with regulatory requirements but can also enhance the company’s reputation and attract eco-conscious talent. What is the Employment Rights Bill’s stance on sustainability?
SMEs face both challenges and opportunities. By proactively adapting to these changes, businesses can not only ensure compliance but also foster a more engaged, diverse, and resilient workforce. Now is the time to review your policies, invest in training, and embrace the new standards to stay ahead in this evolving landscape. Together, we can navigate these reforms and build a stronger, more inclusive future for all. What is the Employment Rights Bill’s overall significance?
What is the Employment Rights Bill’s ultimate aim? We’d love to hear your thoughts. The Employment Rights Bill 2024 introduces significant reforms to UK employment law, enhancing worker protections and promoting fairer workplace practices. If you’d like to explore how this will impact your HR team, please do get in touch.
