Businesses should prepare for sweeping employment law changes, HR experts warn

HR experts are urging businesses to get organised, as the new Labour government sets about implementing its manifesto promise to overhaul employment law.

Peter Jones, who heads up the HR Dept Swindon, North Wiltshire and East Cotswolds, and its sister company which covers London, said a swathe of legislation is planned for the first 100 days of government, amounting to the biggest change to employment law in decades.

“We now have a new government, which outlined numerous planned changes to employment law in the Labour Party’s manifesto,” said Peter. “Now business owners need to bring in changes of their own to make sure they are ready for all the new legislation.”

Key points of the Labour’s ‘Plan to Make Work Pay’ programme include banning zero-hour contracts and ending fire and rehire practices.  

Peter said: “This will have a significant impact on many sectors, including hospitality, which rely on employing seasonal workers.”

From day one, employees will have increased rights, such as protection against unfair dismissal, parental leave, and sick pay. Statutory sick pay will be extended, by removing the lower earnings limit and the waiting period.

Other changes include offering flexible working from day one, in the majority of cases; addressing the impact of AI on jobs and skills; establishing a living wage that reflects the cost of living; and requiring large firms to develop action plans to close gender, ethnicity, and disability pay gaps. Union rights will be strengthened, with plans to remove restrictions on trade union activities. 

There will be a review of health and safety regulations, including those related to extreme temperatures and long Covid. Notably, the right to ‘switch off’ will be introduced, to promote a positive work-life balance.

Specific changes are coming in, to protect rights for self-employed workers, as well as a Fair Pay Agreement in the adult social care sector to tackle recruitment and retention issues.

Peter added: “From increasing tribunal rights, to extending statutory sick pay, to re-empowering the trade unions, many of the plans will have a significant impact on SMEs. However, Labour have said they will consult with businesses, workers, and civil society to implement their plans effectively.”

The HR Dept supports clients in a range of sectors, with manufacturing, IT and tech, and trades being particularly strong. It works with businesses across Swindon, Chippenham, Hungerford, Marlborough, Calne, Devizes, Burford, Lechlade and Carterton.

For more information about the HR Dept Swindon, North Wiltshire and East Cotswolds, visit https://www.hrdept.co.uk/swindon-north-wiltshire-east-cotswolds/, email [email protected] or call 01793 683 398.