With a confirmed Labour win in the general election, we thought it would be useful to update our clients on what to expect. Below are those areas relating to employment that we feel may affect our clients. We will update you as and when there is any movement on these over the coming months.
Employment Law
• Remove qualifying periods (currently 2 years) for basic rights such as unfair dismissal, sick pay, and parental leave so they become day-one rights.
• Remove current distinction between employees and workers so that all workers are afforded same basic rights and protections, e.g. sick pay, holiday pay, parental leave, protection against unfair dismissal, etc.
The above two points are the most significant changes contained within the manifesto relating to employment and both potentially would have far-reaching impact.
Other commitments from Labour include:
• Individuals who are classed as self employed to be given a right to a written contract.
• Ban “one-sided” flexibility in zero hours contracts; anyone working regular hours for 12 weeks or more will gain right to a regular contract to reflect hours worked; and all workers to get reasonable notice of any change in shifts or working time, and recompense for cancelled shifts.
• Improve information and consultation procedures in relation to “fire and rehire” by replacing statutory Code of Practice introduced by current Government with a stronger one; and adapt unfair dismissal and redundancy legislation to prevent workers being dismissed for not agreeing to a worse contract.
• Work with workers, trade unions, employers and experts to examine what AI and new technologies mean for work, jobs and skills.
• Strengthen trade union right of entry to workplaces; simplify process of union recognition; strengthen protections for trade union reps; and new duty on employers to inform workforce of right to join a union in their written contract.
• Extend time limit for bringing employment tribunal claims from 3 months to 6 months; simplify enforcement of equal pay; and establish a single enforcement body to enforce worker rights.
• Strengthen existing rights and protections, i.e. pregnant workers, whistle-blowers, workers made redundant, workers subject to TUPE processes and those making grievances; and encourage employers to sign up to “Dying to Work” charter to support workers with a terminal illness.
Health and Well-being
• Require large employers with more than 250 employees to produce Menopause Action Plans. Introduce a new right to disconnect (right to switch off) and protect workers from remote surveillance.
To talk to an expert about a menopause action plan, you can reach out to Black Mountain Employee Benefits either through our website or via email – enquiries@blackmountainhr.com
Pay
• Remove wage age bandings used in current system; reform role of the Low Pay Commission, including requiring it to take the cost of living into consideration when recommending rates; ensure travel time in sectors with multiple working sites is paid; and ban unpaid internships except as part of education/training course.
• Strengthen Statutory Sick Pay (SSP), make it available for all workers and remove the waiting period. Rate to represent fair earnings replacement.
• Publication of ethnicity and disability pay gaps to be mandatory for firms with more than 250 staff.
As you can see, there are likely to be significant changes moving forward. We will support our clients to implement these changes and will provide further updates once more information has been released.
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