From legislation to general election… Check out our key insights ⬇️

Wow...

It's been a whirlwind for us HR folks lately with all those changes in legislation and the announcement of a general election!

This month, we're sharing some key insights from our recent survey on employee entitlements and exploring how employment law might change after the election.

Our Survey Insights on Employee Entitlements

Firstly, thank you to everyone who participated in our recent survey on employee entitlements.

The results are in, and they shed some light on current practices across various organisations:

• Statutory Entitlements: The majority of respondents have implemented statutory entitlements only. It’s great to see that most businesses are meeting their mandatory obligations 🧡
• Enhanced Entitlements: A very limited number have gone above and beyond to enhance employee entitlements beyond statutory requirements 👀
• No Inaction: We’re pleased to report that no-one indicated they’ve done nothing. Progress is being made, and that’s a win for everyone! 😁

What's Next You Ask? 🤔

Here's Some Possible Changes in Employment Law

With the recent announcement of the upcoming general election in July, we may see a significant shift in government for the first time in 14 years.

In preparation, the Labour Party has published its Green Paper titled A New Deal for Working People, outlining their proposals to reform current employment laws.

Here’s a quick rundown of what might be on the horizon:

➡️ Single Status of ‘Worker’

Currently, UK employment law categorises individuals as employees, workers or self-employed.

Labour plans to consolidate these into a single status of ‘worker’ for all but the ‘genuinely self-employed’.

This change aims to provide all workers with the same protections, including sick pay, parental leave and protection against unfair dismissal from day one.

➡️ Expanded Unfair Dismissal Protections

Under the current law, employees usually with two years of continuous service are protected from unfair dismissal, and compensation is capped at 52 weeks’ pay.

Labour proposes removing the qualifying period and statutory caps, allowing all workers to claim unfair dismissal and seek appropriate compensation.

➡️ Increased Statutory Sick Pay

Labour plans to increase the amount of Statutory Sick Pay (SSP) and extend eligibility to all workers, including the self-employed and low-wage earners.

➡️ Banning Zero Hours Contracts

The days of zero hours contracts may be numbered. Labour intends to ban contracts without a minimum number of guaranteed hours. Anyone working regular hours for twelve weeks or more will gain the right to a regular contract.

➡️ Ending Fire and Rehire Practices

Labour aims to adapt redundancy legislation, ending fire and rehire practices. They’ll also ensure that notice and ballot requirements on trade union activity don’t inhibit defensive action.

➡️ Right to Disconnect

A new right to switch off outside of working hours is on the table. Workers would have the right to disconnect from work and not be contacted by their employer during their personal time. Labour may also introduce new rights to protect workers from remote surveillance.

➡️ National Minimum Wage Increase

Labour plans to raise the national minimum wage to £10 per hour for all workers immediately. This could impact apprenticeships and see unpaid internships banned unless part of an education or training course.

➡️ Strengthening Workplace Rights

The time periods for bringing claims at Employment Tribunals would be extended from 3 months to 6 months. Labour also plans to remove caps limiting the amount of compensation awarded.

➡️ Updating Trade Union Legislation

Labour proposes updating trade union legislation to remove restrictions on union activities.

➡️ Strengthening Family-Friendly Rights

Expect extended statutory maternity and paternity leave, along with the introduction of bereavement leave rights. Protections for pregnant women would be bolstered, making it unlawful to dismiss a woman while pregnant or for six months after her return, except in specific circumstances.

➡️ Tackling Workplace Harassment

Employers would be required to create and maintain workplaces free from harassment, including by third parties.

Phew, looks like we've wrapped everything up now 😅

We hope this overview provides valuable insights into the potential changes ahead.

If you have any questions or comments, feel free to reach out. Let’s continue the conversation and ensure we’re all ready for whatever changes come our way.

Adam, Mark & Dean - Petaurum HR