- Work Hard
- 27th Nov 2024
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How Labour’s new employment laws could affect you
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As we’re gearing up for changes under a Labour government, whether you’re an employee or a business owner, we‘re all left wondering how they’ll impact us.
Kathryn Rodgers, the founder of face2faceHR Newcastle, has over two decades of HR expertise, from addressing workplace dynamics to fostering supportive, inclusive environments.
With a friendly, jargon-free approach, Kathryn shares what Labour’s new focus on ‘making work pay’ means for workplaces across the country.
LABOUR’S EMPLOYMENT LAW REFORMS: WHAT CHANGES CAN WE EXPECT?
Labour’s proposed reforms are all about enhancing workers’ rights. They aim to bring more financial security, flexibility and job stability to workers.
Kathryn says, “One of the biggest anticipated changes is extending unfair dismissal protections from the first day of employment, eliminating the current two-year wait. This adjustment means employees would no longer need to endure two years in a role to gain legal protection, bringing more stability to job security but also posing new challenges for employers to manage right from hiring.”
Labour’s focus on worker protection extends if you’re on zero-hour and variable-hour contracts, particularly in industries like hospitality and manufacturing. “Labour plans to implement the right to request a working pattern based on average hours over a reference period, likely 12 weeks, which would better protect workers from unpredictable schedules,” Kathryn explains. This change aims to create fairer working conditions, but it requires businesses to think more strategically about scheduling.
WHAT’S ON THE HORIZON FOR INDIVIDUAL WORKERS?
Fairness for temporary, contract and freelance workers
Kathryn outlines a range of new protections likely to emerge under Labour’s vision. These include fair treatment for the temporary, contract and freelance workers. “Workers on variable-hour contracts might soon gain a right to guaranteed hours if their worked hours consistently exceed contractual minimums,” Kathryn says. “If businesses don’t offer these guaranteed hours, employees could bring claims to tribunals. This legal shift would bring stability for workers who have long endured uncertain schedules, but it places new administrative demands on employers.”
Aim to tackle pay inequality
Kathryn also touches on Labour’s efforts to tackle pay inequality, including changes to the gender pay gap. Labour would require businesses with 250+ employees to publish annual gender pay gap reports, accompanied by an ‘equality action plan.’ Kathryn advises, “For employers, this could mean a closer look at diversity and pay equality within their organisations, as larger companies would be held publicly accountable.” Smaller companies might not face this mandate, but embracing transparent pay structures could still help attract talent.
HOW WILL THESE REFORMS AFFECT BUSINESS OWNERS?
A push for guaranteed hours and sick pay
Labour’s new policies aim to build a more supportive, secure workplace, but business owners will face new responsibilities. Kathryn explains, “Labour’s push for guaranteed hours and sick pay from day one means employers need to be vigilant about compliance and employee management. Employers may need to adapt probation periods to fit the new dismissal protections, setting clear, measurable targets for new hires within the first few months.”
Need for careful planning around recruitment and retention
For businesses relying on freelance, temporary and flexible contracts, Kathryn suggests careful planning around recruitment and retention. “As employee mobility increases and job protection comes from day one, employers will need to ensure strong engagement and clear, measurable onboarding processes to retain talent.”
A shift in redundancy and dismissal protocols
Another key focus of Labour is the shift in redundancy and dismissal protocols. The new rules could further restrict “fire and rehire” tactics, making it crucial for businesses to adopt collaborative strategies when updating employment terms. Kathryn warns that tribunal claims may rise under these protections, but without a boost to tribunal capacity, employers could face delayed resolutions in disputes.
HOW TO PREPARE YOUR BUSINESS FOR LABOUR’S PROPOSED CHANGES
Kathryn offers a proactive approach for employers preparing for Labour’s possible impact. “This is a great time to conduct an HR policy review,” she suggests. By assessing current recruitment, hiring and onboarding processes, companies can ensure compliance with Labour’s anticipated reforms.
Kathryn’s key tips to prepare
- Conducting risk assessments: This can identify potential harassment or discrimination issues within the company.
- Manager training: Training managers on new rules and discrimination policies will help build a culture of accountability.
- Reviewing pay structures and employee benefits: Labour’s removal of the lower age minimum wage bracket and its push for gender pay transparency will have implications for budgeting and reward planning.
Kathryn also recommends that you consider employee feedback to understand what keeps them engaged and to make necessary improvements. “With enhanced job mobility, a supportive work culture will be invaluable in retaining talent.”
LABOUR’S PUSH FOR INCLUSIVITY – MENOPAUSE ACTION PLANS TO BE INTRODUCED IN MORE BUSINESSES
Labour has a strong focus on diversity and inclusion, which could bring new workplace requirements, especially for large employers. Kathryn points out, “Businesses with over 250 employees may need to implement and publish menopause action plans, as peri- and menopausal women are one of the fastest-growing workplace demographics.”
HLN TOP TIP: Need more advice on how to cope with menopause at work? Kathryn shares her tips here.
For personalised advice on preparing your workplace for Labour’s upcoming reforms, contact Kathryn Rodgers at face2faceHR Newcastle.
Rachael Ellis
Creative Solutions Manager
After gaining a first in her BA Media and Journalism degree at Northumbria University, Rachael worked at Newcastle’s leading regional newspaper with her stories being picked up in national and global newspapers She spent two very successful years giving a voice to those communities across the North East who otherwise…
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