The King’s Speech, at the recent state opening of parliament, confirmed plans by the new Labour government to reform employment law by introducing an Employment Rights Bill. This will represent a ‘seismic shift’ for workers and businesses and see the greatest change to employment law in more than a generation.
Although the changes have been welcomed, particularly the government’s intention to work in partnership with business, there is some concern over the impact these reforms could have on employers.
While we wait for the detail to be confirmed, these are the key takeaways:
- Making parental leave, sick pay and protection from unfair dismissal available from day-one on the job for all workers (while ensuring employers can operate probationary periods to assess new hires).
- Reforming ‘exploitative’ zero hours contracts, ensuring workers have a right to a contract that reflects the number of hours they regularly work and that all workers get reasonable notice of any changes in shift with proportionate compensation for any shifts cancelled or curtailed.
- Increasing the time limit within which employees are able to make an employment claim from three months to six months, bringing the time limit for all claims in line with the time limit for statutory redundancy and equal pay claims.
- A ban on employers ‘firing and rehiring’ staff under less favourable terms and conditions.
- The ‘right to switch off’ to promote healthier working practices, following similar models to those that are already in place in Ireland and Belgium,
- Strengthening Statutory Sick Pay by removing the lower earnings limit and the waiting period.
- Delivering a ‘genuine living wage’ and removing the existing age categories for the minimum wage, which will not require separate legislation.
When are these changes likely to become law?
As legislation is not required to change the remit of the Low Pay Commission, changes to the national minimum wage could come into effect as early as April 2025. However, the Employment Rights Bill is unlikely to come into force straight away as it will need to be approved as primary legislation by the Houses of Parliament and require secondary legislation or new/updated codes of practice.
What steps can employers take to prepare?
There is no action for employers to take immediately, but in due course, there may need to be a review of HR systems, policies and procedures – so it’s a case of watch this space. . .
For further support and advice, please contact our HR team on 01981 590514.
