With Labour now at the helm, the landscape of employment law is set for significant transformation. Their manifesto, centered on worker rights, promises to overhaul current practices and introduce new regulations designed to ensure fair treatment and improved working conditions.
So, the big question is: is your company ready for these changes?
HR2day managing director Nicky Jolley offers businesses some crucial advice…
A new era for employment rights
Labour’s plan highlights critical reforms, some of which are listed below. Companies will face a tougher code of practice on certain practices, ensuring more stringent oversight and fairness in employment contracts.
Key changes to anticipate
Day-One employment rights: Employees will be protected against unfair dismissal from the first day of employment. This significant shift requires companies to ensure termination processes are fair and compliant from the start.
National minimum wage reform: The removal of age-related bandings means all workers will receive equal pay for equal work, necessitating a review of wage structures for compliance.
Contracts for self-employed individuals: Employers must provide written contracts to self-employed individuals, reducing ambiguity and protecting freelance and gig workers.
Union Rights in employment terms: Employment contracts must include a clause covering the right to join a union, enhancing transparency and supporting workers’ rights to organize.
Enhanced statutory sick pay: Statutory sick pay will increase, and more employees will qualify. Companies need to budget for these costs and update payroll systems accordingly.
Default flexible working: Flexible working will become the default for all workers from day one, unless not reasonably feasible. This requires companies to rethink job roles and working arrangements.
Ban on zero-hour contracts: Exploitative zero-hour contracts will be banned, pushing companies to offer more stable and predictable working hours, particularly affecting industries reliant on casual labor.
Strengthened fire-and-rehire regulations: The law around fire-and-rehire practices will be tightened, requiring companies to explore alternative measures before making significant changes to employment terms.
Equal rights for workers and employees: Workers will receive the same rights as employees, including parental leave and protection against unfair dismissal, necessitating a re-evaluation of current classifications and benefits.
Right to disconnect: Employees will gain the right to disconnect, preventing employers from contacting them outside working hours, and necessitating clear policies on work communication and boundaries.
Revised industrial action laws: The removal of laws limiting the impact of industrial action means strikes could have greater effects, particularly in education and transport sectors, requiring robust contingency planning.
Menopause and pay gap reporting: Large businesses must create menopause action plans and report on disability and ethnicity pay gaps, promoting inclusivity and transparency.
Preparing for the transition
Labour’s pledge to introduce some of these changes within the first 100 days of office underscores the urgency and commitment to reform.
Companies should conduct comprehensive audits of current employment practices and policies.
Engage with legal experts and HR professionals to understand the implications of each new law and begin to implement necessary changes.
While some changes will be immediate, others will roll out gradually, following detailed consultations.
Embracing these changes early not only ensures compliance but also positions companies as leaders in fair and progressive employment practices.
In this new era of employment law, proactive and forward-thinking companies will not just survive but thrive, creating workplaces that are fair, inclusive and supportive for all employees.
So, is your company ready for Labour’s new employment laws?
Now is the time to prepare and lead the way in fostering a fairer working environment for everyone.
Get ahead of the curve and contact us for your free initial audit overview – visit hr2day.co.uk
Nicky Jolley
Managing director, HR2day
