Category: Employment Law, News
Labour’s “Plan To Make Work Pay” The Impact on Employers
In its “Plan To Make Work Pay” Labour has set out the changes in employment legislation it aims to implement in government. The proposals cover wide-ranging areas within the workplace, and we have summarised these below.
To learn more about how these employment changes will affect your business we are holding a free seminar in Salisbury on Tuesday 10th September 2024 from 9:30am. You can book onto this seminar via this link
Register for the Seminar Here .
We recommend to all employers that they begin to review employment documents to prepare for these changes. Access2 Human Resources will be on hand to help with the changes as they are passed into law and provide guidance to ensure that you are compliant with the legislations.
Increase in Minimum Wage and Sick Pay Rights
It is planned to increase the national minimum wage (NMW) to make it “a wage that people can actually live on”. This would be done by changing the Low Pay Commission’s remit leading to a minimum wage that takes into consideration the cost of living. Alongside increasing the NMW Labour aims to extend the payment of statutory sick pay from commencement on day four of absence to payment from day one for both workers and employees.
Zero-Hour Contracts
Labour proposes to stop the use of zero-hour contracts. They will ban the use of these contracts and make employers commit to a contract that confirms a regular number of hours that would work based on a 12-week period. We will await further developments on this, but it is sensible for employers to start reviewing their contracts and assessing the changes that will be required if currently using zero-hour contracts.
Unfair Dismissal Protection
Current legislation requires employees to have two years’ continuous service before they are entitled to claim ordinary unfair dismissal (where dismissal is for a potentially fair reason such as conduct or capability) at employment tribunal. It is intended to make bringing an employment tribunal claim for unfair dismissal a right from the first day of employment. While this legislation would not prevent an employer from carrying out a fair dismissal (such as a dismissal that has followed the correct process and is related to capability, conduct, redundancy, legal contravention or “some other substantial reason”), it does mean that extra care will have to be taken right from day one to ensure that correct legal process has been followed. Employers that currently provide for additional flexibility within the first two years of employment (i.e. the internal disciplinary process may not be applied) will need to review their processes and policies accordingly.
Family Friendly Rights
Plans include reviewing the parental leave system within the first year with the aim to make parental leave a day one right. Alongside parental leave Labour are committed to further protection for pregnant women. They plan on doing this by making it unlawful to dismiss a woman who is pregnant for six months after her return. The aim is to provide new mothers with certainty that the law is on their side.
It is planned to ensure paid carers’ leave is introduced as well as bereavement leave for all workers.
The Right to Switch Off
Labour will introduce a “right to switch off” for employees, which in practice is likely to mean employers may not contact them outside of working hours.
Flexible Working Rights
The indication is an intent to make flexible working the default for all workers from day one, except when it is not feasible.
Union Involvement
A simplification of the process of union recognition will enable employees to have a meaningful right to organise through trade unions. The government will review the current process for statutory recognition claims as well as changing the rules relating to the final ballot where workers vote on whether to recognise a trade union. The aim for this will be for unions to only require gaining a simple majority in order to win.
Worker Status
Currently the UK has a three-tier system for employment status where people are classified as an employee, self-employed or a worker. Employment status will determine what employment rights and protections an individual is entitled to. Workers in particular find it very difficult to understand where they sit and what they are entitled to and businesses also struggle to identify who is an employee or a worker. The intention is to deliver a simpler framework that provides clarity between workers and genuinely self-employed staff to ensure that businesses are able to then provide them with the appropriate processes and procedures.
TUPE and Redundancy Rights
Redundancy rights will be increased under the Labour government to ensure that there is a stronger protection for employees. This will happen by ensuring that there is a right to a redundancy consultation and that this is determined by the number of people that this would impact across the business rather than just workplace. This will result in the potential of collective consultation to be required in more situations. They also aim to improve the existing rights and protections for employees/workers subject to the TUPE process.
Whistleblowing
Labour aim to strengthen protections for whistleblowers. This will include updating protections for women who report sexual harassment at work.
While we get to grips with the changes to our government and watch how the next 100 days and beyond will unfold, Access2 Human Resources will be keeping you up to date with the latest developments and changes. It is important that you begin to review your employment documents to understand how these changes may affect your business.
In the event that you require further advice and/or can’t make it to our free seminar, you can call the HR support team on 01722 325 833 and we will be more than happy to help.
Laura Jayne O’Grady
HR Adviser