The new government have already set out their plans for significant changes to employment legislation in line with their manifesto.  While some have been slated for the first 100 days, the ability to implement changes within this timescale will be limited by the desire to consult with business and trade unions and the need to pass new laws.

We have summarised below some of the key changes that are likely to affect smaller businesses.

  • More employment rights from the first day of employment.  The most significant of these is the right to claim unfair dismissal, which currently only applies after 2 years employment.  Probation periods will still be allowed but will need to be clearly structured and managed.  Other rights likely to apply from day one are the right to sick pay and paid family leave (e.g. paternity leave).
  • A ban on “exploitative” zero hours contracts, although it is not clear what is considered exploitative.  This is likely to mean the removal of one-sided flexibility and the right for workers to have a contract based on their regular working pattern over a period of 12 weeks.
  • Removal of the age bands for the National Minimum Wage for workers over 18.
  • Time limits for submitting a tribunal claim to be increased from 3 months to 6 months.
  • Flexible working to be a right unless an employer has a good reason to refuse it.
  • Making it easier for trade unions to gain recognition and requiring employers to inform employees of their right to join a union.

 

These are just some of the changes proposed in Labour’s “Making Work Pay” document but the ones that we think will have the most impact on small businesses in the short term.   Of course, the devil will be in the detail and we will keep you informed as the proposals are firmed up and we have dates for implementation.

The Government’s first step will be to introduce an Employment Rights Bill through the parliamentary process and to establish a Single Enforcement Body to support it.  Then we are likely to see a timescale for implementation and greater clarification of the measures proposed.

The team at Pennine HR will be updating our clients’ employee handbooks and related documentation to reflect legislation changes as and when they happen.  We will also be on hand to answer any questions about these changes or any other aspect of people management – Call us on 01484 841776 to speak to a member of our team or email [email protected]