What Employers Need To Know About The Government's New Employment Law Reforms
6 September 2024 By Falmouth Fairfax
Employers across England, Wales and Scotland should expect several employment law reforms to affect everyday business decisions in the coming months, thanks to Labour's intended reforms set out in their "Plans to Make Work Pay". There are numerous proposed alterations but some of the key topics include: unfair dismissal, right to flexible working from day one, right to statutory sick pay from day one, right to switch off, family leave, bereavement leave, increased protection from sexual harassment, more pay gap reporting, race equality, and a new single status of 'worker'. We take a more in depth look at some of these points below.
Unfair Dismissal – Day One Right
Perhaps one of the most drastic shifts employment law wise is the government's promise to give employees protection from unfair dismissal from the first day of their employment. Current protection from unfair dismissal only kicks in after two years of continuous employment. This means employers can only terminate an employee's employment lawfully after identifying a fair reason and following a fair process as prescribed by law.
Whilst this change is seemingly good for employees, the change could see them enduring lengthy probation periods and is likely to make businesses recruit with greater scrutiny.
Right to Flexible Working – Day One Right
The right to request flexible working became a day one right on 6 April 2024. The Labour Party has now stated that flexible working will be made the default for all workers, except where it is not reasonably feasible, from the first day of employment. The aim is that workers could benefit from flexible arrangements, such as term-time options, with a particular emphasis on flexibility for workers with caring responsibleness (both for children and elderly parents). Another potential bonus of this proposed change is the chance for a four day working week. Full time workers could request this providing they condensed their contracted hours into four days.
Education Minister Baroness Jacqui Smith told LBC that "flexible working is actually good for productivity".
She said the four-day week being discussed would allow someone to work 10 hours a day for four days instead of working eight hours a day for five days.
"You're still doing the same amount of work, but perhaps you're doing it in a way that enables you, for example, to need less childcare, to spend more time with your family, to do other things, that encourages more people into the workplace," she added.
Statutory Sick Pay – Day One of Sickness Right
Labour will remove the four-day waiting period so that statutory sick pay (SSP) must be paid from day one of sickness, which will increase employers' costs. The Government has not confirmed if it will increase the rate of SSP, which remains relatively low at £116.75-per week, but it does plan to remove the lower earnings limit.
Family Leave Changes
The Labour Party will review the parental leave system, wanting to make 'parental leave' another day one right. It's unclear if this means parental leave only or other kinds of right for parents to take family leave. For example, paternity leave currently requires six months' of employment. It seems highly likely that the Labour Party will scrap this.
Additionally, a new law was already introduced this year that means pregnant women who are selected for redundancy have the right to suitable alternative employment. The Government also wants to prevent the dismissal of those returning from maternity leave, except in specific circumstances which have yet to be defined.
The right to one week's unpaid carer's leave came into force in April 2024. Though they have not promised to do so, The Labour Party would look at making this a paid entitlement.
Details of any changes are expected in the autumn when a law to create a new package of workers' rights is expected to begin its journey through Parliament. Whilst the previous government have made their opposition known regarding many of the changes, citing they would damage business and lead to a reduction in productivity, Prime Minister Sir Keir Starmer calls the proposals "the biggest upgrade to worker's rights in a generation".