We thought we would give everyone a short summary of the headline changes due to come into effect over the coming months, subsequent to the election results earlier this summer. These range from changes in pay, workers’ rights through to how and when we do our work.
With Labour winning the UK election on 4th July, there are a multitude of significant proposed changes to consider under their ‘Plan to Make Work Pay: Delivering a New Deal for Working People’. Labour have promised that they will bring a bill to enrol their plans within the first one-hundred days of their tenure; with the hopes these will be enforced within the next six to twelve months.
Employment status reforms
Subject to consultation, they hope to introduce a new single “worker” status for everyone except the genuinely self-employed; whereby employment status is generally defined as a holistic combination of: personal service, mutuality of obligations and control – exercised by the employer. Labour would be, therefore, extending statutory rights (such as sick pay and family leave) to all those who are considered ‘workers’ under this revision, merging worker and employee statuses.
Contracts and Employee Rights
Zero Hour Contracts
Employers could see an end to “exploitive” zero-hour contracts, with further guidance to follow around when exceptions can apply and with what restrictions, if any. Labour have been vague about their future equivalent, with one spokesman stating: “If you choose to carry on with a zero-hours contract, you can do so”, as their bid to empower the worker will leave the ball in their court. However, employers will be forced to offer a contract with regular working hours as a potential replacement, with the expectation that this will become the standard practise for new employees. Casual workers may have the right to a predictable working plan after twenty-six weeks, and employers should give ‘reasonable’ reasons if they cannot provide this. There is also a possibility that workers could claim compensation for shifts that are cancelled at short notice.
Switch-off
Labour have also illuded to the right for all workers to disconnect / switch off. Although there is currently no guidance as to how this will work. The premise being that employees will not be expected to carry out work outside of their contracted hours and there should be no penalisation given their refusal – as set out currently as a voluntary code of practice in Ireland. Assuming that this would follow suit with the European nations with similar rights, employers and co-workers would not be able to expect a response from an employee/colleague outside of their working hours and may even be expected to state in their communication that they do not expect a response until the recipient re-enters working hours.
Flexible Working
Flexible working is set to become the default working arrangement for employees, expect from where it is obviously not applicable. Labour have stated that the increase in technological advancement will facilitate more flexi-time contracts and hours that better accommodate school terms, where they are not currently available.
Unfair dismissal and tribunal claims
Unfair Dismissals
Ordinary unfair dismissal claims are valid after two-years’ service currently; but this set to become a day-one right. There is, however, a need for clarification regarding probationary periods. It is not yet clear how probationary periods regarding performance will be applicable and how they may still facilitate the business to release those who are not performing within the early stages of their employment.
Tribunal Claims
The time period to bring a tribunal claim will be extended from three to six months for all statutory tribunal claims – e.g. unfair dismissal, unfair treatment. Labour’s wishes to increase transparency regarding employment statuses were said to have been in an effort to unclog tribunals, which may be counter-acted by immediate employment rights. By increasing the time period to bring a claim, giving everyone day-one rights so that everyone has the right to make a claim, as well as abolishing statutory caps on compensation that workers can receive if they are successful in their pursuit of justice, there is likely to be an influx in tribunal cases; especially with the merging of workers and employees.
Businesses should consider that these changes may increase Data Subject Access Requests (DSAR), and the possible need for an increase in retention periods for certain documents.
Grievances
In addition to these changes, Labour wants to make it easier for workers to raise grievances about conduct at work. Notably, they plan to introduce joint grievances via ACAS; they state that under current provisions: “bad or illegal practice can continue without properly being dealt with.”
Changes to pay and pay reporting
Minimum Wage
Labour have promised to remove the age bands for minimum wage, as well as changing the minimum wage to “reflect the need for pay to take into account the cost of living”. They have effectively promised an increase in the minimum wage, as well as hoping to change regulations on travel time in sectors with multiple working sites, with a need for contracts to reflect this. Although they have not been clear in how the wages will increase, they have suggested a gradual increase in minimum wage to £15/hour by 2030, applying to all workers over 18, thus merging the national minimum wage and the national living wage. All workers also could become entitled to Statutory Sick Pay (SSP) from day-one, with a removal of the lower earnings limit and the current three ‘waiting days’. There will also be an end to unpaid-internships, except if they are an explicit part of an education or training course.
Social Care Workers
Adult social care workers have been promised their own Fair Pay Agreement, as well as increased scope to negotiate on: fair pay, working conditions, staff benefits, terms of employment and training opportunities. Labour have said they are committed to ensuring fair pay for social workers, including paid travel time, as well as potential paid leave – although this is merely rumoured, currently.
Pay Reporting
Larger employers (over 250 employees) are to produce extended pay gap reporting, with an extension of equal pay claims to be mandatory for ethnicity and disability cases. The gender pay gap is to include outsourced workers (which are yet to be defined), and employers are to publish an action plan alongside the report.
Equality and Family rights
Parental Leave
Labour have stated that the parental leave system will be reviewed within the first year, with this becoming a day-one right, whereby the categories affected would be: maternity, paternity, shared, and unpaid parental leave. Workers are entitled to up to one-week unpaid carers leave per 12 months period currently (meaning one’s entitlement for the year is subject to number of working days in their regular working week) with a potential for this to become paid – although this is not yet confirmed.
Pregnancy
There will be an Increase to the rights of pregnant women and returning mothers, making it unlawful to dismiss within 6 months of returning to work, building on existing protections.
Menopause
Larger employers (over 250 employees) are to create a menopause action plan. There is already a ‘menopause workplace pledge’ campaign that some UK employers are signed up to.
Sexual Harassment
Employers will have a new mandatory duty to prevent harassment, including sexual, and third-party harassment, which was previously removed from the Equality in Act in 2013. They must take all reasonable steps to stop it happening, before it starts. Women who report sexual harassment will also be provided with the same protections as whistleblowers; as well as this protection for whistleblowers is being reviewed to increase fortification.
Redundancy and TUPE
Redundancy
A more holistic approach to redundancy will be brough in, with a requirement to apply a collective redundancy consultation across the whole of the business, and not just within one workplace/department. Employees who are subject to TUPE processes will have greater protection such as changing T&C’s as part of a TUPE transfer. However, it is not yet clear what other changes are being considered.
Fire and rehire
There will be a ban to “fire and rehire” practices, with Labour stating that the soon to be implemented “code” of practice as not being enough. There will be new legislation or a strengthened code introduced later, although the details of this have not been clarified.
Trade Union and enforcement of Employment Law
Trade Unions
Labour plan to introduce sector wide collective bargaining in social care and other sectors. There will also be increased powers for trade unions, ending the minimum service legislation from certain sectors and simplify trade union recognition process. Employees will have a new duty to inform workers of their rights to access a union and should be pro-active in its approach.
Fair Work Agency
A creation of a single enforcement body (Fair Work Agency) with greater enforcement powers and the ability to fine and prosecute employers who breach employment rights with strengthen employee rights.
If you think that these changes may affect your business and you want some advice on how to best manage them, feel free to get in contact with us. You can reach us at: enquiries@hrcentrlal.co.uk or 0118 324 2526
