Today, 10 October 2024, the UK government introduced the Employment Rights Bill, a landmark reform designed to overhaul the country’s employment laws. This extensive bill targets improving economic security and boosting productivity for both businesses and workers. Here’s what business owners and managers need to know about the key changes and the advice to prepare for these new regulations.
Key Reforms in the Bill
- Day-One Employment Rights: One of the most significant changes is the removal of the two-year qualifying period for protection against unfair dismissal. Employees will now have these rights from day one, making it critical for businesses to review their onboarding and probation processes.
- End of Exploitative Practices: The bill bans exploitative zero-hour contracts, requiring businesses to offer guaranteed hours if workers regularly work set shifts. Similarly, “fire and rehire” practices will be curtailed, with measures to protect employees from abrupt terminations.
- Enhanced Parental and Sick Leave: New rights for paternity, parental, and bereavement leave will now apply from day one. Statutory sick pay will also be available immediately without a waiting period, and the lower earnings threshold will be removed, affecting millions of low-income workers.
- Flexible Working as a Default: Flexible working will become the default option for all employees unless an employer can demonstrate that it is impractical. This will impact business operations and scheduling, particularly for industries like hospitality.
- Fair Work Agency: A new enforcement body, the Fair Work Agency, will consolidate existing regulatory bodies and ensure compliance with holiday pay and other entitlements, offering guidance and support to businesses
Advice for Businesses
- Review and Adjust Employment Contracts: Given the move to day-one rights, businesses should audit their employment contracts and policies, ensuring they align with the new standards. Consider adjusting probationary periods to accommodate the new rights while still allowing time for assessing employee fit.
- Adapt to Flexible Working Requirements: Companies must prepare to make flexible working arrangements the norm. This might include investing in technology that supports remote work and revising workplace policies to offer a fair and efficient process for handling flexible work requests.
- Prepare for Increased Administrative Demands: The bill’s measures, particularly around family leave and the enforcement of sick pay, will likely increase administrative workloads. Small businesses, in particular, should consider seeking professional advice to ensure they remain compliant without overburdening their HR departments.
- Engage in Consultations: As the government continues to refine details through consultations, businesses are encouraged to participate and voice their concerns or support. This can help shape secondary legislation and ensure the new rules work in practice for both employers and employees.
- Monitor Upcoming Changes: Further reforms, such as the right to switch off outside work hours and expanded pay gap reporting, are planned. Businesses should stay informed on these developments to prepare adequately for implementation.
The Employment Rights Bill represents a significant shift towards a more flexible and secure working environment in the UK. While this presents opportunities for enhancing employee satisfaction and productivity, businesses must proactively manage these changes to stay compliant and competitive.
How Beavis Morgan can Help
To stay compliant with these extensive reforms, Beavis Morgan group company BM Connect offers comprehensive payroll and HR solutions designed to alleviate the administrative burden on businesses. Our services help manage payroll efficiently, ensuring compliance with statutory sick pay, parental leave, and flexible working arrangements. BM Connect’s tailored support allows companies to focus on growth while we handle the complexities of payroll, reducing the risk of non-compliance and helping to make sure that employees receive the rights they are entitled to.
For tailored advice on how these reforms might impact your business and assistance with preparing for these changes, contact your usual Beavis Morgan partner in the first instance, or Paul Simpson, Head of HR, Beavis Morgan group.
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