With the Labour Party in power with a large majority, significant changes to employment law and workplace regulations are anticipated. As recruiters and employers, understanding changes and planning for them will help keep us all compliant. This article breaks down some key proposals and offers practical advice to help us adapt effectively. Actual legislation may undergo development and take time to have an effect.
You Need To Know These Six New Employment Policy Changes And Their Impact
Strengthened Employee Rights
- Unfair Dismissal and Parental Leave: Eligibility for unfair dismissal claims and parental leave will become day-one rights, eliminating the current 1-year and 51-week service requirement. This policy might increase the number of dismissal claims, necessitating thorough and lawful dismissal procedures from the outset.
- Enhanced Maternity Protections: Dismissing a woman during pregnancy or within six months of her return to work following maternity leave will become unlawful, except in specific circumstances. Employers must carefully review their termination policies to comply with these new protections.
Redundancy Consultation
- The Labour government plans to redefine the redundancy consultation requirements. Employers will consider the number of redundancies across the entire business rather than at individual locations. This means that even smaller-scale redundancies could trigger collective consultation obligations, significantly impacting multi-site employers.
Pay Gap Reporting
- Firms with over 250 employees will be required to report not only gender pay gaps but also ethnicity and disability pay gaps. Additionally, action plans to address these gaps will become mandatory, increasing the administrative burden on larger employers.
Zero-hours Contracts and Flexible Working
- The government will heavily restrict Zero-hours contracts. Employees will gain the right to stable contracts reflecting their regular hours over 12 weeks. Flexible working will become the default from day one of employment, necessitating workforce management and scheduling adjustments.
Enforcement and Compliance
- A Single Enforcement Body will oversee workers’ rights, including health and safety, minimum wage, and exploitation. This body will have extensive powers to conduct inspections and enforce compliance, increasing the need for rigorous adherence to employment laws.
Living Wage Reform
- Cost of Living Adjustment: The Low Pay Commission’s remit will be expanded to include considerations of the cost of living alongside median wages and economic conditions. The aim is to ensure that the minimum wage is sufficient for workers to meet their basic needs.
- Uniform Minimum Wage: Discriminatory age bands will be eliminated, ensuring all adult workers receive the same minimum wage. Labour will collaborate with the Single Enforcement Body and HMRC to enhance enforcement of the living wage, including implementing penalties for non-compliance.
Take These Five Steps Now To Prepare
- Review and Update Policies: Ensure all employment policies, particularly those related to dismissal, maternity leave, and redundancy, are updated to comply with new regulations. Monster recommends policies are a live document regularly reviewed.
- Enhanced Record-Keeping: You should maintain detailed records of employment decisions, especially regarding dismissals and redundancy processes.
- Training and Development: Provide training for HR and management teams on the new obligations to ensure smooth implementation and compliance.
- Proactive Pay Gap Analysis: Start collecting data on ethnicity and disability pay gaps now and develop preliminary action plans to address disparities.
- Flexible Work Arrangements: Evaluate your current flexible working policies and prepare to make requests for flexible working the default for new employees.
The new Labour government will reform the UK’s employment landscape substantially. By staying informed and proactive, you can navigate these changes effectively. These steps will ensure you remain compliant and maintain a fair and supportive workplace.
Stay Informed
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