The Labour party have promised to “deliver the biggest upgrade in rights at work for a generation” under proposals set out in the New Deal for Working People. (access the full document by following this link: https://labour.org.uk/wp-content/uploads/2024/05/LABOURS-PLAN-TO-MAKE-WORK-PAY.pdf)
In this document I have picked out 2 of the proposals which are most likely to have an impact on small and medium sized businesses. The government are expected to introduce new legislation in parliament within 100 days of being elected. I will continue to keep you updated on changes in legislation, however, to help with the introduction of this legislation there are some actions employers can take at this stage. These are set out in this blog:
Basic Rights from Day one of Employment
At the moment, most employers will be aware, employees will need to have 2 years service in order to make an unfair dismissal claim (apart from in some exceptional cases). This rule gives employers a great deal of flexibility in making decisions regarding termination of employment in the first 2 years but offers limited employment protection to those with less than 2 years service.
The Labour party have pledged to introduce legislation to give protection from day one of employment. The proposals state:
“Our New Deal will include basic individual rights from day one for all workers ending the arbitrary system that leaves workers waiting up to 2 years to access basic rights of protection against unfair dismissal, parental leave and sick pay.
This will not prevent fair dismissals which includes dismissal for the reasons of capability, conduct or redundancy or probationary periods with fair and transparent rules”.
Whist the legislation still needs to be approved there are steps employers can take to get ready for this proposed change, they are:
As the law in this area is expected to become more complex it would be helpful to ensure that record keeping is robust and managers are skilled in dealing with the probationary period process.
Zero Hours and One Sided Flexibility
The proposals state: “Labour will end one sided flexibility and ensure that all jobs provide a baseline level of security and predictability – banning exploitative zero hours contracts and ensuring everyone has the right to have contract that reflects the number of hours they regularly work (based on a 12 week reference period)”.
Zero hours contracts are used in many sectors but more often in hospitality and retail to offer flexibility. The proposals do not say that zero hours contracts will be banned but they state that if it is clear that they are exploitative then this will be unlawful.
It is always good practice to review the contractual arrangements you have with your staff to ensure they are reflective of the work they undertake. At this stage it would be wise to:
If you would like help putting measures in place to get ready for changes in employment law, or to chat over any of the other proposals set out by the Labour party, please get in touch.
As detailed legislation is introduced, I will update on what has changed and steps employers should take.
In this document I have picked out 2 of the proposals which are most likely to have an impact on small and medium sized businesses. The government are expected to introduce new legislation in parliament within 100 days of being elected. I will continue to keep you updated on changes in legislation, however, to help with the introduction of this legislation there are some actions employers can take at this stage. These are set out in this blog:
Basic Rights from Day one of Employment
At the moment, most employers will be aware, employees will need to have 2 years service in order to make an unfair dismissal claim (apart from in some exceptional cases). This rule gives employers a great deal of flexibility in making decisions regarding termination of employment in the first 2 years but offers limited employment protection to those with less than 2 years service.
The Labour party have pledged to introduce legislation to give protection from day one of employment. The proposals state:
“Our New Deal will include basic individual rights from day one for all workers ending the arbitrary system that leaves workers waiting up to 2 years to access basic rights of protection against unfair dismissal, parental leave and sick pay.
This will not prevent fair dismissals which includes dismissal for the reasons of capability, conduct or redundancy or probationary periods with fair and transparent rules”.
Whist the legislation still needs to be approved there are steps employers can take to get ready for this proposed change, they are:
- Ensure recruitment decisions are taken following a robust process to minimise the need to consider termination of employment after an employee has started
- Ensure that new employees have a contract of employment which includes a probationary period clause
- Ensure that performance expectations are clear for new employees and there are methods in place to monitor performance
- Ensure managers are confident and skilled at giving feedback on performance and appropriate documentation is in place should you need to consider termination of employment at the end of the probationary period
- Consider if your policy on probatory period dismissals needs to be reviewed
As the law in this area is expected to become more complex it would be helpful to ensure that record keeping is robust and managers are skilled in dealing with the probationary period process.
Zero Hours and One Sided Flexibility
The proposals state: “Labour will end one sided flexibility and ensure that all jobs provide a baseline level of security and predictability – banning exploitative zero hours contracts and ensuring everyone has the right to have contract that reflects the number of hours they regularly work (based on a 12 week reference period)”.
Zero hours contracts are used in many sectors but more often in hospitality and retail to offer flexibility. The proposals do not say that zero hours contracts will be banned but they state that if it is clear that they are exploitative then this will be unlawful.
It is always good practice to review the contractual arrangements you have with your staff to ensure they are reflective of the work they undertake. At this stage it would be wise to:
- Review the wording in contracts of employment and assess how many staff are employed on a Zero Hours Contract
- Track the hours staff have worked over the last 12 weeks and assess whether the hours set out in the contract reflect the reality
- Review expected workload and assess what hours you will need employees to work to fulfil business needs.
If you would like help putting measures in place to get ready for changes in employment law, or to chat over any of the other proposals set out by the Labour party, please get in touch.
As detailed legislation is introduced, I will update on what has changed and steps employers should take.
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