Big changes to HR from the new Government
23 July 2024
Following the General Election 2024, the new Government has promised to introduce legislation within 100 days of taking office. This includes changes to employment legislation. So, what does this mean for employers? Some of the key changes from the many proposed are listed below.
Minimum Wage reform
It is said that the minimum wage will increase to take account of the cost of living, the Government also plans to remove age bands from the minimum wage ensuring each adult worker is paid the same.
Statutory Sick Pay
Statutory Sick Pay (SSP) will be extended to those who are below the lower earnings limit which is currently set at £123 per week will and the waiting period which requires employees to be sick for 3 days before they will be entitled to SSP, will also be removed.
Unpaid internships
Unpaid internships will be banned except where they are part of an educational or training course.
Zero-hour contracts
The Government will effectively ban zero-hour contracts. Zero-hours contracts are also known as casual contracts. Zero-hours contracts are often used for ‘piece work’ or ‘on call’ work. Instead of such arrangements, every person will have the right to have a contract which reflects the number of hours they regularly work based on a 12-week reference period. Employers will be required to pay compensation when working hours are cancelled without reasonable notice.
Fire and rehire
The statutory Code of Practice on Dismissal and Re-engagement came into force on 18 July 2024. The new statutory code deals with “fire and re-hire”, a situation which may arise in the event an employer cannot agree a proposed change to an employee’s terms and conditions of employment with them, resulting in the employer terminating the employees employment and rehiring them on the amended terms and conditions.
The code sets out that fire and rehire should only be used as a last resort, a requirement to consult for as long as reasonably possible, employers need to explore alternatives. Once it is clear the changes are not agreed, then the employer should re-examine the changes and consider feedback. Employers should not threaten dismissal if it is not actually envisaged and must not use threats to coerce employees into agreeing the changes proposed. The employer may need to review the changes in the future to reconsider whether they are still needed.
However, the Government has pledged to end fire and re-hire and to replace and strength the code; meaning employers will no longer be able to change an employee’s terms and conditions under the threat of dismissal without risking fines.
Day one rights
The current system which can leave some workers waiting two years to access protection rights against unfair dismissal and one year to access parental leave will be replaced by a system which gives workers these rights from day one. Employers will still be entitled to operate probationary periods, but these must be ‘fair and transparent’. Employers will also still be entitled to engage in a fair dismissal which will remain the same (conduct, capability, redundancy, and some other substantial reason).
Single status of worker
The current three-tier system which classifies people as either employees, self-employed or workers will be replaced with two categories: worker; and self-employed. Those who are currently classified as workers will therefore likely see their rights extended to the level of an employee.
Whistleblower protection
The government will strengthen protections for whistleblowers. This will include an update of the protections for woman who report sexual harassment at work.
Self-employed
Self-employed workers will be granted the right to a written contract.
Flexible working
The Government have said that they will change the law so that flexible working will be the default from day one for all workers “except where it is not reasonably practicable.”
Maternity protection
It will be unlawful to dismiss a woman within six months of her return from maternity leave. There will be some exceptions to this rule. However, the exact guidelines on this are yet to be published.
Bereavement leave
All workers will be entitled to bereavement leave.
Carer’s leave
The Government will support the new legislation for unpaid carer’s leave introduced in April 2024 and examine the potential benefits of introducing paid carer’s leave.
Working from home
Proposed changes to flexible working include: employees having ‘the right to switch off’; and workers and employers will be encouraged to have constructive conversations to find a solution which benefits both parties. The Government has stated that they will follow the ‘Irish or Belgian model’. This suggests a breach of the right will have minor legal consequences. However, there is uncertainty around how this will look, and it will be important to monitor this legislation.
Trade union legislation updates
Employers will be required to inform workers of their right to join a union. Laws will also be introduced which: remove limitations on trade union activity; abolish minimum service levels; prevent agency workers replacing striking workers; change the level of support required for a trade union to a simple majority; and to simplify ballots and to make ballots.
There will be new rights for unions to access workplaces for recruitment and organising purposes and new rights for representatives to have sufficient time off from work to perform their duties.
Furthermore, employers will be required to consult with trade unions or agreed staff representatives before implement employee surveillance technology.
Pay gap reporting
Large businesses will be required to publish action plans to close their gender pay gaps. Outsourced workers must be included in this reporting. Employers with over 250 workers must also publish their ethnicity and disability gaps.
Menopause in the workplace
Employers with over 250 employees will be required to produce menopause action plans setting out how they will support employees through the menopause. Guidance will also be published for smaller businesses.
Please listen to our “BACK your people” podcast for more information here: https://podcasts.apple.com/gb/podcast/all-change-a-run-through-the-hr-employment/id1692007953?i=1000661239557
Contact our employment team here.
This article was drafted my Gabrielle Scriven.
