The newly elected Labour government has swiftly unveiled an ambitious agenda aimed at reshaping the landscape of workers’ rights and conditions in the UK. The Labour government has pledged to implement these changes within the first 100 days of their term.  While some details remain to be finalised, the commitment to rapid action means employers must prepare for swift implementation. Here’s a look at what this means for employers:

Day-One Rights for Workers

Labour plans to extend key employment rights from the first day of employment. These day-one rights include protections against unfair dismissal, eligibility for parental leave, and sick pay.

Employers will need to ensure that all new hires are granted these rights immediately upon starting their employment. HR policies and employee handbooks will need to be updated to reflect these changes, ensuring compliance and clear communication with employees. A review of employer’s recruitment and Selection Policy will also need to take place to ensure they are hiring the most appropriate candidates.

Changes to the Living Wage and Fair Pay

Labour’s plan includes a commitment to revising the living wage and ensuring fair pay across all age groups. Key changes include:

Reviewing the Living Wage: Adjusting the living wage to better reflect the cost of living.

Removing Age Bands: Eliminating lower minimum wage rates for employees under 25, ensuring equal pay for equal work.

Sickness Benefit Review: Reevaluating sickness benefits to provide better support for employees who are unable to work due to illness.

Employers will need to adjust pay scales to ensure compliance with the revised living wage and the removal of age bands. These changes may require significant budget reallocations to accommodate increased wage costs and enhanced sickness benefits.

Banning Some Zero Hours Contracts

Another key element of Labour’s plan is the restriction on zero-hours contracts. These contracts, which do not guarantee any hours of work, have been criticised by the party for their instability. Under the new regulations, workers who regularly work a consistent number of hours will be entitled to a contract that reflects these hours. This will be determined based on a 12-week reference period.

Employers will need to review and adjust contracts for employees who have been working regular hours, ensuring that their contracts accurately reflect their typical working hours. This will require a thorough review of work patterns and possibly an administrative overhaul to comply with the new regulations.

Reviewing Family-Friendly Laws

The government has committed to reviewing and potentially enhancing family-friendly laws. This includes:

Bereavement Leave: Ensuring employees have adequate leave following the death of a loved one.

Flexible Working: Making flexible working arrangements the default unless there is a valid business reason not to.

Parental Rights: Strengthening rights related to maternity, paternity, and shared parental leave.

Employers will need to revisit and possibly expand their family-friendly policies, ensuring they align with new legal standards. Increased emphasis on supporting employees’ work-life balance, may require cultural shifts within the organisation.

What Employers Should Do Now:

Consult us!: Engage with HR and legal experts to ensure all changes are understood and correctly applied within your organisation.

Prepare for Transition: Begin reviewing current contracts, policies, and pay scales to identify areas that will need adjustment.

Stay Informed: Keep abreast of the latest updates and guidance from the government regarding the implementation of these changes.

THS: Here to Help

At THS, we are dedicated to staying ahead of legislative changes and ensuring our clients are well-prepared. If you have any questions or need assistance navigating these new regulations, do not hesitate to get in touch. Our team of experts is here to support you through these transitions, helping you to understand and implement the necessary changes to remain compliant and supportive of your workforce. Call 01633246666 or contact Matt on 07704016007