It is currently still unclear how some of their proposed reforms will work in practice and when they will come in to effect, but below we have outlined the most significant changes and what they could mean for you and your business.
Unfair dismissal from day one of employment
Currently employees are only able to make an unfair dismissal claim once they have been in employment for two years. The proposed changes mean that employees would be able to bring an unfair dismissal claim from day one of employment.
However, employees will undergo a nine-month probationary period, during which they can be dismissed more easily without the full process required.
What does this mean for the employer?
Employers will need to follow much more onerous procedures before dismissing an employee in the early stages of their employment. It will become even more important for them to be sure that the hire is a good fit for their organisation.
Banning certain zero-hour contracts
At present if an employee is working under a zero-hours contract they are not guaranteed hours from their employer, but they also do not have to work when they are asked to.
Proposed changes mean that employers will have to offer a guaranteed hours contract based on the average hours that they work during a 12-week period.
If a zero-hours contract is something that you would prefer to have, you are able to remain on those terms, should you wish.
Flexible working to become the ‘default’ for all workers
Where practical, employers will be required to say ‘yes’ to requests from their staff for ‘flexible working’, from day one of their employment, unless they can prove it is ‘unreasonable’ and not feasible in their workplace.
There is currently no clarity about what is deemed ‘unreasonable’.
Flexible working can include, but is not limited to, flexible start and finish times or working from home.
National Minimum Wage the same for all
Younger workers are currently entitled to a lesser wage than those older than them. The plan is to remove these barriers and have a National Minimum Wage for all, regardless of age.
In particular, businesses that have a high percentage of under 21s in their employ will have to asses their financial forecasts to account for these increased costs.
Statutory Sick Pay to become more available
Employees having to wait until the fourth day of absence to receive SSP will be removed, and they will be eligible from day one of sickness. The minimum earnings limit will also be removed.
Employers will need to factor in higher wage costs for when their workforce is absent due to sickness.
Day one parental and bereavement leave
The rules that mean employees are only able to take unpaid parental leave or bereavement leave after they have been employed for more than a year are to be removed, and this is to be made available from day one of employment if a dependant dies.
Protection against dismissal for pregnant women and new mothers
New measures being introduced are likely to make it more onerous for employers to dismiss pregnant employees or those who have recently returned from maternity leave.
‘Fire and rehire’ practices to be prohibited
Employers that terminate an employee’s employment contract and rehire them on less favourable terms will no longer be able to do so. Although most businesses would only operate this practice as a last resort to potentially reduce costs in a time of need, they will now have less options available to them.
If you’d like to chat about any of these points, please feel free to get in touch.
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