During their election campaigning, Labour was clear that should they get into power, that there would be “A New Deal for Working People.” Whilst it may not have been what they were elected on, now that they are in Government, it’s worth looking at the five key employment law changes that they promised would be introduced within 100 days.
Given the implications for employers, particularly the removal of the two year qualifying period for important employee rights, we think it’s worth looking in more detail at what lies ahead for business owners/leaders and managers. To this end, we’ve highlighted five of the areas that are likely to change.
1. Day one rights
Employees will be granted unfair dismissal rights from day one of employment. This involves the removal of the 2-year minimum service requirement for bringing a claim. The full details about how this will work are not fully known yet, but this huge shift is likely to mean that employers may need make changes to how they deal with employees in the early months of their employment. Parental leave and sick pay will also be a right from day one of employment.
2. Probationary periods and hiring
Labour also wants to bring in probationary periods with ‘fair and transparent rules and processes’ to stop employers from dismissing employees without justifiable reasons or cause. At this stage we are unsure what maximum length this will be. Whatever the change, it may be necessary for employers to bring in more rigorous recruitment policies to ensure candidates are a good fit for the role. This may involve more psychometric testing, an increase in time spent on assessment of new hires and more monitoring and feedback during their probationary period. In addition, employers will also need to put in place robust processes and procedures on dismissal to ensure they are fully compliant.
3. The right to disconnect
This law will prevent employers from contacting their workers outside of working hours giving employees a right to not answer any form of work-related contact which falls outside of their working hours, where such refusal is reasonable. This will create a new challenge for employers in terms of balancing the rights of their workforce against their business needs and may mean that training will be required so that management/leadership respect the boundaries. I will also necessitate changes to current wellbeing initiatives and existing policies relating to flexible working and leave.
4. Zero hours contracts
Labour wants to prevent the abuse and/or exploitation of zero hours contracts in order to better control what it terms one-sided flexibility. Whilst not banning them altogether, they will set out minimum standards, so for example if someone works regular hours for more than 12 weeks, then they would have the right to a contract that reflects the number of hours they work. Plus, workers would also be entitled to reasonable notice of changes in shifts or working hours. Employers will need to review their use of zero-hour contracts to ensure that they comply with the new rules
5. Fire and Re-hire
The new Government is committed to ending the practice of dismissal and re-engagement as a way of legally changing employees’ terms and conditions. While acknowledging that it is important that businesses can restructure to remain viable, preserve their workforce and the company when there is genuinely no alternative, the Plan states that this must be done following a proper process based on dialogue and mutual understanding between employers and workers. It is proposing to bring in a strengthened code of practice, which will have improved information and consultation procedures and adapted unfair dismissal and redundancy legislation to prevent workers being dismissed for failing to agree to a worse contract. Employers will in most cases need to prove that they have undertaken proper dialogue with employees, prior to dismissal.
How I can help
For advice and support when it comes to updating policies, processes and procedures, please email caroline.robertson@actifhr.co.uk