UK Employment Law Changes 2024 from the King’s Speech
We have multiple UK employment law changes to consider in 2024. In this article we’re going to take you through the upcoming changes, what you have to be aware of to stay compliant and how we can help remove the time and stress of keeping up to date when you are an employer.
Take note of the Actions You Can Take sections.
In this article:
- New Employment Bill
- Day-One Employment Rights
- Zero Hours Contracts
- Maternity Rights
- Single Enforcement Body
- Fair Pay and National Minimum Wage (NMW)
Plus
- Draft Equality (Race and Disability) Bill
- New Employment Bill
This will be tabled (a formal way of putting forward to the House of Commons) by 12th October 2024. Although this has captured some headlines due to it being seen as representing the biggest upgrade to worker’s rights in a generation it does come with some caveats recognising the reality of being an employer.
We’ll be keeping an eye on any changes so contact us for the latest news.
Day-One Employment Rights
It is the new government’s intention to make parental leave, sick pay and protection from unfair dismissal available from day one of employment.
As an employer, you can continue to use probation periods to assess new hires although no detail is yet available on how this will work and how long those periods can last.
This most radical change to employment law removes the current 2-year qualifying period.
The right to Flexible Working will also be a default position. The government expects employers to accommodate such requests UNLESS the business has a logical and convincing argument.
Actions You Can Take
- You can prepare for this new addition by:
- Review and update your recruitment practices
- This is to make sure your business is making sound hiring decisions. You may wish to undertake additional assessments or background checks to ensure the person you are recruiting is the best fit for the position and the company culture.
Review Current Probation Periods
- Do you think your current probation period provides enough time for a thorough assessment?
- Do you have a written policy/process that ensures you are recruiting employees with a good fit for your business?
- Does this process set out what to do if new recruits don’t meet expectations during probation?
- Do managers know what to do and how to enlist HR support if a problem arises with the new recruit?
- Ensure all processes of employment are documented and this documentation is retained for a period of up to six years from the end of the financial year to which they relate.
Zero Hours Contracts
It is unlikely that zero-hours contracts will be banned outright. The government is addressing the way some workers have been exploited and the flexibility of such contracts is attractive to some workers.
The law will be changed to give the worker a right to a contract reflecting their average hours worked. Also included will be compensation for workers who have shifts cancelled or shortened at short notice.
‘Fire and Rehire’ and ‘Fire and Replace’ practices are also going to be curtailed.
Actions You Can Take
- To reduce the risk of short or cancelled shifts a business will have to plan as far ahead as possible. Particular attention should be paid to the use of outsourced and agency workers.
- We can certainly help with reducing this stress. It’s what we’re here for.
- An audit of your workforce should be undertaken. This would establish those on zero-hours contracts and if they can be moved onto permanent or fixed-hour contracts.
Maternity Rights
The new legislation will increase protection for new mothers for six months after returning to work, except in exceptional circumstances.
Single Enforcement Body
What this ‘Fair Work Agency’ will be allowed to enforce and the penalties it can enforce are still not known. It is thought, within the industry, that they will be allowed to impose financial penalties, which increase government revenue.
Check-in with our team for the latest news.
Fair Pay and National Minimum Wage (NMW)
An increase in the National Minimum Wage (NMW) is expected before April 2025.
The current NMW for those over 21 is £11.44 ph. and it seems likely this will be increased to reflect the “genuine living wage” supported by the Living Wage Foundation which currently sets the Real Living Wage at £13.15 ph. in London and £12.00 ph. outside London.
Statutory Sick Pay (SSP) is set to increase.
Actions You Can Take
- Audit your staff and identify those paid or close to the NMW.
- Analyse your pay structure and any other worker rewards. Would non-financial rewards and incentives be helpful?
- Technical compliance breaches are also a headache. For example, certain shift premiums and bonuses are not included in the NMW calculation.
We can help with such headaches, it’s our job.
Budget for increased payroll costs. Consider if a cost-cutting exercise should be undertaken. Anticipating payroll increases means you will be better prepared for the new legislation.
Would an investment in tech’ bring greater efficiency for your business, cut down on minimum wage workers and create roles for those with higher skill levels?
Draft Equality (Race and Disability) Bill
This is likely to affect employers with a workforce of 250+. The bill will enshrine the full right to equal pay for ethnic minorities and disabled people.
This will mean that a claimant will be able to bring equal pay claims on the basis of race or disability pay disparity/differences in contract terms, in addition to claims based on gender as is currently the case.
Actions You Can Take (for large employers, 250+)
- How will you collect and process ethnic and disability data and keep it secure?
- What other preparations can you make? This is a draft bill so it may change before coming before parliament. Consider how much effort you are prepared to make to be forearmed for these changes.
Check-in with our team for the latest news.
Conclusion
Employment law is a very involved business, it’s time-consuming, stressful (if not your full-time role) and can lead to punitive measures. It’s E&P Services business to be ahead of any employment law, remove our client’s stress and give them more time to focus on running a successful business.
Drop us a line and we can have an obligation-free chat.
Image credit: Amy Hirschi, unsplash.com