“I think people should always be treated with dignity and respect at work but I also think it’s essential for economic growth, because every good employer knows that to get better economic growth we need to treat our workforce properly.”— Keir Starmer

With Labour now in government, significant changes are on the horizon that will impact businesses and workers across the UK. Understanding these proposed plans is crucial for ensuring your business stays compliant and thrives under the new regulations. Here’s a detailed breakdown of key elements from Labour’s plan and actionable steps to prepare your business.

Key Changes in the First 100 Days (July - September 2024)

1. Employment Rights Bill (ERB) Introductions

Overview: The ERB will introduce a range of new employment rights and protections for workers.

Action: Begin reviewing current employment contracts and policies to ensure alignment with the forthcoming ERB. This includes updating terms and conditions, as well as ensuring that all employees are aware of their rights under the new legislation.

2. Creation of Single Enforcement Body (SEB)

Overview: The SEB will streamline enforcement of employment rights, combining the functions of existing bodies into one.

Action: Familiarise yourself with the SEB’s reporting and enforcement procedures to streamline compliance. Establish internal processes to ensure prompt and accurate reporting and adherence to the new enforcement standards.

3. Awareness of Neurodiversity in the Workplace

Overview: Emphasis on creating inclusive environments that support neurodiverse employees.

Action: Implement training and policies that support neurodiverse employees. This includes revising recruitment practices, offering flexible working arrangements, and providing appropriate support and accommodations.

4. Fair Work Standard and Minimum Wage Increase

Overview: Immediate increase of the minimum wage to £10 per hour.

Action: Prepare to adjust payroll systems to reflect the new minimum wage. Review budgets to assess the financial impact and make necessary adjustments to ensure compliance. Communicate the changes to employees to ensure transparency.

5. Day One Rights Roll Out

Overview: Employment rights, including protection against unfair dismissal, will be available from the first day of employment.

Action: Develop robust probation and performance processes with supporting documentation. Ensure all new employees are informed of their rights from day one and have access to the necessary resources.

6. Large Firms Requirements (250+ staff)

Overview: New requirements for closing gender pay gaps and mandatory reporting of ethnicity and disability pay gaps.

Action: Develop action plans to address gender pay gaps. Prepare for mandatory reporting by collecting and analysing relevant data on ethnicity and disability pay gaps. Implement strategies to address any disparities identified.

7. Employment Tribunals

Overview: Digitisation and improved enforcement of employment tribunal processes.

Action: Stay updated on the digitisation process. Adjust legal strategies to accommodate the new digital procedures, ensuring that all necessary documentation is submitted in the required format and within deadlines.

8. Trade Unions

Overview: Simplification of recognition processes and enhancement of workers’ rights to organise.

Action: Ensure that contracts inform employees of their right to join a union. Provide sufficient facilities for union activities and foster a workplace culture that respects and supports union membership.

Key Changes within the Six Month (July - December 2024)

1. End of ‘Fire and Rehire’

Overview: Prohibition of the practice of dismissing employees and rehiring them on less favourable terms.

Action: Review current contracts and policies to ensure compliance. Ensure any necessary changes are made to employment practices to avoid the risk of legal action.

2. Strengthening of TUPE Rights and Whistleblowing Protections

Overview: Enhanced protections for employees during business transfers and for whistleblowers.

Action: Update internal policies to reflect these strengthened rights. Provide training to managers and HR personnel to ensure they understand and comply with the new regulations.

3. Equal Pay Measures

Overview: New regulations to enforce fair pay, particularly concerning outsourced services.

Action: Conduct an audit of pay structures to ensure compliance. Implement necessary adjustments to address any pay disparities and ensure fair pay practices across all levels of the organisation.

4. Ban on Unpaid Internships

Overview: Prohibition of unpaid internships to ensure fair compensation for all workers.

Action: Review internship programmes to ensure they comply with new regulations. Ensure that all interns are paid fairly for their work and receive the same rights and protections as other employees.

Longer-Term Key Changes (January - July 2025)

1. Single Status of Worker

Overview: Introduction of a single status for workers to simplify employment classifications.

Action: Assess current employment types within your business to prepare for this shift. Update contracts and policies to reflect the new classification system.

2. Self-Employed Rights

Overview: Enhanced protections and written contracts for self-employed individuals.

Action: Draft and review contracts for self-employed individuals to ensure clarity and compliance. Provide the necessary support and resources to ensure these individuals understand their rights and protections.

3. Flexible Working

Overview: Flexible working requests will be available from day one of employment.

Action: Update your contracts and prepare for an adaptable workforce. Develop policies and procedures to handle flexible working requests and ensure they are processed fairly and efficiently.

4. Parental and Carers Leave

Overview: Potential improvements to leave entitlements for parents and carers.

Action: Prepare policies and procedures for enhanced leave entitlements. Ensure that all employees are aware of their rights and have access to the necessary resources and support.

5. Living Wage Enforcement

Overview: Increased enforcement of the living wage to ensure fair pay for all workers.

Action: Re-evaluate wage structures and budget for potential increases. Implement necessary adjustments to ensure compliance and avoid enforcement issues.

How can you prepare for the potential changes?

Review and Update Contracts: Ensure all employment contracts reflect new rights and protections. This includes updating terms and conditions and ensuring that all employees are aware of their rights under the new legislation.

Develop Training Programmes: Focus on awareness and compliance, particularly for neurodiversity and union rights. Provide training to managers and HR personnel to ensure they understand and comply with the new regulations.

Implement Robust Reporting: Prepare for mandatory pay gap reporting and develop strategies to address any disparities. Ensure that all necessary data is collected and analysed, and that any issues identified are addressed promptly and effectively.

Enhance Communication: Keep employees informed about their rights and any changes in company policies. Provide regular updates and ensure that all employees have access to the necessary resources and support.

Adapt Policies: Ensure all HR policies are updated to comply with new regulations, from fair work standards to flexible working arrangements. Regularly review and update policies to ensure ongoing compliance and support for employees.

Stay Ahead: Staying ahead of these changes requires proactive planning and continuous adaptation. Regularly review Labour’s updates and adjust your business strategies accordingly. By doing so, you can ensure a smooth transition and maintain a compliant, supportive workplace for all employees.

Conclusion

Navigating Labour's proposed employment law changes is a complex but necessary task for businesses aiming to stay compliant and support their workforce effectively. By proactively reviewing and updating contracts, developing training programmes, implementing robust reporting systems, and enhancing communication and HR policies, you can ensure your business is prepared for these changes.

Staying ahead of these changes requires continuous adaptation and strategic planning.

Discover more Info with Everybody Hates HR's YouTube Video!

Navigating these complex changes can be challenging, but you don’t have to do it alone. At Legacy Strategies, we specialise in providing comprehensive HR services to help businesses like yours stay compliant and thrive under new regulations. Our expert team can assist you with:

• Reviewing and updating contracts to reflect new rights and protections

• Developing and delivering training programmes for awareness and compliance

• Implementing robust reporting systems for mandatory pay gap reporting

• Enhancing communication to keep your employees informed and engaged

• Adapting your HR policies to align with new regulations

Have you recently audited your HR Policies and Employee Handbook? Are you sure you are currently compliant?

Contact us today to learn more!

🌐 www.legacystrategiesltd.co.uk

📧 [email protected]

📞 01702 540145

Sources & Interesting Links

• Labour Party Website: For the latest updates and official announcements from the Labour Party regarding their proposed employment law changes, visit their official website.

• Gov.uk Employment Law: The UK government's official site for employment law provides comprehensive information on current laws and regulations. Stay updated by visiting Gov.uk Employment Law.

• ACAS (Advisory, Conciliation and Arbitration Service): ACAS offers advice on employment rights, best practices, and resolving workplace disputes. They provide valuable resources for understanding and complying with employment law changes. Visit ACAS for more information.

• CIPD (Chartered Institute of Personnel and Development): The CIPD offers insights and resources on HR practices and employment law. They provide updates and guidance on navigating changes in employment regulations. Check out their resources at CIPD.

• Law Society Gazette: The Law Society Gazette publishes articles and analysis on legal changes, including employment law. Stay informed by visiting their website.

• BBC News Business Section: For news and analysis on how Labour's proposed changes might impact businesses, visit the BBC News Business Section.

• Personnel Today: This site offers news, analysis, and advice on HR and employment law. They frequently cover legislative changes and their implications for businesses. Visit Personnel Today.

• TUC (Trades Union Congress): The TUC provides information on workers' rights and union activities. They offer resources and updates on employment law changes. Visit the TUC for more details.

Visit us on Social Media