Labour’s Employment Legislation Shake-Up: What It Means for Your Business
Posted on July 5, 2024
The Labour Party has confirmed its plans to overhaul employment legislation, aiming to update what it sees as outdated laws that don’t meet the needs of the modern economy. If you’re an employer, these changes will impact both you and your employees swiftly, as Labour intends to introduce new legislation within its first 100 days in government.
Here are some key changes outlined in the manifesto and what you should consider now:
Zero-Hours Contracts
Labour plans to ban zero-hours contracts, ensuring all workers receive contracts reflecting their regular hours over a 12-week period.
SME HR Consultancy Observation: This change might require a review of terms where zero-hours contracts are used, ensuring contracts are fit for purpose and processes are in place to measure the 12-week reference period.
What Should You Do Now?
– Audit your workforce to assess the extent of zero-hours contracts.
– Start planning how to calculate the 12-week reference period for your team on zero-hours contracts.
Fire and Rehire
Labour intends to crack down on ‘fire and rehire’ practices, which involve dismissing employees and then rehiring them on less favourable terms. While initially pledging to ban this practice, Labour has acknowledged necessary exceptions where business viability is at stake.
SME HR Consultancy Observation: This crackdown will necessitate thorough consultations to ensure compliance.
What Should You Do Now?
– Continue to approach substantial consultation projects around terms and conditions with caution.
Day-One Protection and Employment Tribunal Time Limit
Labour plans to extend basic employee rights from day one of employment, eliminating the current two-year qualifying period for certain protections like unfair dismissal. Additionally, Labour proposes increasing the time limit for employment claims from three months to six months.
SME HR Consultancy Observation: If dismissals are handled fairly and transparently, as required for those with over two years of service, this change should have minimal impact. However, expect an increase in unfair dismissal claims and longer litigation processes.
What Should You Do Now?
– Review dismissal policies and seek advice before proceeding with dismissals for employees with less than two years of service.
The Right to Switch Off
Labour proposes a right for workers to disconnect from work communications outside of working hours, promoting a healthy work-life balance.
SME HR Consultancy Observation: Many employers already strive to minimise contact outside work hours, understanding its impact on mental health and well-being.
What Should You Do Now?
– Balance productivity with clear boundaries.
– Implement policies and procedures to support this change.
– Train managers to limit contact outside working hours to essential circumstances.
Collective Redundancy Consultation
Labour seeks to strengthen redundancy rights by removing the ability for large employers with multiple sites to treat each site separately, triggering collective consultation requirements more frequently.
SME HR Consultancy Observation: This change will impact larger SMEs with 20+ employees.
What Should You Do Now?
– Develop systems to monitor collective consultation requirements closely to avoid substantial penalties.
Prepare for Change
Labour’s plan aims to rebalance employee rights, and if implemented within 100 days, businesses must start preparing now.
Need Help? SME HR Consultancy can assist in developing and implementing HR policies and solutions to ensure your business is ready for these changes.
Schedule a Complimentary 30 minutes HR Consultation:
– E-mail us on info@smehrconsultancy.com
– Call me on +44 (0) 7852 965 609
We can help navigate these changes together to ensure a smooth transition for your business and employees.
(Photo taken from Labour Party official website https://labour.org.uk/updates/stories/a-new-deal-for-working-people/)
