As most employers are aware, the UK government is introducing significant changes to employment law under a new employment rights bill which is expected to be released next month.
These reforms are designed to enhance workers’ rights and create fairer working conditions for all. But since the general election, there’s been a lot of talk about what these changes will consist of, and what they will mean for organisations.
Ahead of the official bill being introduced, in this blog post we run through what we understand the government will be introducing so far as confirmed in a recent article by The Times.
Flexible working will continue to be the default option from the first day of employment. However, under the planned new rules, it appears that employers will be required to accommodate requests for flexible working arrangements “except where it is not reasonably feasible”. Therefore, there will be a greater need for employers to justify turning down these types of requests.
Although day-one rights to flexible working are already in place, the increased media coverage around compressing full-time hours into a four-day week is further highlighting to employees that this is an option, and therefore, employers will likely see an influx of these requests which they are under increased pressure to accept.
Employers must be prepared to handle these requests promptly and fairly, ensuring that their policies and practices are updated to reflect this new flexible working standard. In addition, organisations may need to prepare for a potential increase in tribunal cases to evaluate the circumstances in which they refuse requests.
The new legislation will introduce stronger protections and rights for all employees from the first day of employment. Parental leave, sick pay, and protection from unfair dismissal will be available to all employees from the start of their employment, no longer requiring a minimum length of service to be eligible.
However, businesses will, we understand, still be able to implement probation periods for new hires, allowing employers to assess new employees once they start in their roles.
Additionally, the minimum earnings level for statutory sick pay is proposed to be removed, meaning more employees will be eligible for financial support during time off for illness.
To combat the blurring of lines between work and personal life which has become more prevalent since the increase of remote working during COVID-19, the bill will include a requirement for organisations to establish a code of practice that defines “normal working hours” – the only time employees will be required to respond to work-related communications.
This will allow employees to ignore work calls, texts, and emails outside these hours, except in emergencies. Employers will need to work closely with their teams to develop these guidelines – which will differ from sector to sector – ensuring that they meet the needs of both the organisation and their employees, along with clearly defining those situations that would be classed as an ‘emergency’.
Read more on what a right to switch off policy might look like in this recent insights article from Vero HR’s CEO, Mike.
The government has said the new bill will end “exploitative” zero-hour contracts. Workers will be entitled to a contract that accurately reflects the number of hours they typically work.
What’s more, employers will be required to provide reasonable notice for any shift changes, with employees owed compensation if their shifts are cancelled or changed at short notice.
This change, which will likely impact industries such as hospitality and healthcare the hardest, will require employers to be much more organised and transparent in scheduling work and shifts and managing their teams.
The new employment rights bill will prohibit the controversial practice of “fire and rehire,” where employees are dismissed and rehired usually on less-favourable terms. The government is said to be introducing measures to ensure employees are protected from such practices.
What this will look like in practice is yet to be seen, but employers will need to review their existing HR policies and employment contracts to ensure compliance with these new rules when they eventually come into force.
The government plans to remove what is described as “unnecessary” restrictions on trade unions, including the law introduced by the previous government to maintain minimum service levels during strikes.
The process for statutory trade union recognition will also be simplified. Employers should consider how this might impact their workplace relations and negotiations.
A new Fair Work Agency will be created to strengthen the enforcement of employees’ rights. This agency will have the power to impose sanctions on employers who fail to comply with the regulations set out in the new employment rights bill. Employers should expect increased scrutiny and focus on ensuring they adhere to all aspects of employment law to avoid penalties.
New protections will make it unlawful to dismiss an employee for six months after they return to work following maternity leave, except in specific circumstances. Once confirmed in the new legislation, employers should review their existing maternity policies and ensure they provide adequate protection and support for new mothers during this period.
Finally, the bill will introduce a fair pay agreement in the adult social care sector, setting national terms, conditions, and fair pay rates. There will also be the implementation of a “genuine” national living wage that reflects the actual cost of living and eliminates the current age bands which have been labelled “discriminatory”. Employers in the care sector, and those paying their employees the minimum wage, should prepare for these changes, which may require adjustments to pay structures and budgets.
The upcoming employment rights bill will bring about enormous change to the UK’s employment landscape, with a strong focus on flexibility and employee protection. Employers will need to adapt to these changes fast, by updating their policies, practices, and contracts to remain compliant.
We will continue to update you as and when the bill is officially introduced, which should bring more clarity around exactly what rules employers must abide by.
The team at Vero HR is already working with many clients to prepare them for a myriad of imminent changes. If your organisation could do with some support, advice, or hands-on resource for reviewing policies and contracts, get in touch with us today.
