Following the change of government yesterday are you aware of the potential changes to employment law based on labour’s manifesto and what implication this will have on you as an employer.

Here are the main 15 proposed changes in employment legislation, the pros and cons for each and what you need to do as an employer.

1.    Unfair Dismissal

2 year Qualifying period removed

• Pros:
• Improves employee protection from day one, increasing job security.
• Potentially reduces turnover and enhances employer reputation.
• Cons:
• Increases legal risk and potential litigation costs from early disputes.
• Employers may hesitate to dismiss underperforming employees quickly, impacting productivity.
• Action Required :
• Update employment contracts and policies to ensure protection from the immediate right to take action for unfair dismissal.

2.    Sick Pay and Parental Leave

4 waits days removed

• Pros:
• Improves employee welfare and can aid in attracting and retaining talent.
• Encourages employees to take necessary leave without financial stress, potentially improving health outcomes.
• Cons:
• Increases direct costs for employers due to earlier and potentially more frequent payouts.
• Possible abuse of more accessible benefits could lead to increased absenteeism.
• Action Required:
• All company sickness policies will need to be updated to eliminate waiting periods for sick and parental leave in company policies.

3.    Removal of 'Employee' vs 'Worker' Distinction

Distinction between workers and employees removed giving all employees the same basic rights

• Pros:
• Simplifies classification and reduces potential for legal errors.
• Ensures fairness and equal treatment across all types of workers.
• Cons:
• Increased costs and administrative burden to extend benefits to all workers.
• Possible reduction in flexibility for engaging contract or gig workers.
• Action Required :
• Updating of all employment contracts and policies to reflect new rights for workers

4.    Pregnancy and Whistleblower Protections

Increased protection for pregnant employees and whisltblowers

• Pros:
• Enhances support for vulnerable employee groups, promoting a fair and equitable workplace.
• Reduces the risk of costly discrimination or retaliation lawsuits.
• Cons:
• Requires careful monitoring and enforcement, adding administrative complexity.
• Potential for increased operational interference if protections are misused.
• Possible reduction in flexibility for engaging contract or gig workers.
• Action Required :
• Updating of all policies to ensure they are reflective of the changes to legislation and advise employees of their greater rights of protection

5.    Redundancy and TUPE

Greater protection from redundancy for employees facing a TUPE transfer

• Pros:
• Provides better protection and clarity during organizational changes, supporting employee rights.
• Helps maintain morale and productivity during transitions.
• Cons:
• Increases the complexity and cost of executing redundancies and business transfers.
• Could inhibit flexibility in making necessary business adjustments.
• Action Required :
• Revise & update all redundancy policies and ensure compliance with enhanced TUPE regulations.

6.    National Minimum Wage

Removal of age banding and one set minimum rate for all

• Pros:
• Increases earnings for lower-paid workers, potentially reducing poverty.
• Simplifies wage structure, making payroll easier to administer.
• Cons:
• Increases staffing costs significantly, which might lead to higher prices or reduced staffing.
• Action Required :
• Adjust payroll systems to reflect the removal of age bandings for national minimum wage payments to younger employees

7.    Gender, Ethnicity, and Disability Pay Gaps

Mandatory publication of employee’s pay for companies with 250 + employees

• Pros:
• Promotes diversity and inclusion, enhancing company reputation.
• Helps identify and correct systemic pay disparities.
• Cons:
• Compliance and reporting can be costly and time-consuming.
• Potential backlash if disparities are revealed, affecting public image.
• Action Required :
• where required conduct and publish pay audits and implement measures to eliminate discriminatory based pay variations

8.    Sexual Harassment and Flexible Working Rights

Greater protection from sexual harassment and rights for flexible working from day 1

• Pros:
• Creates a safer, more respectful workplace.
• Increases job satisfaction and productivity with flexible working options.
• Cons:
• Requires significant investment in training and policy enforcement.
• Flexible working can complicate team coordination and resource allocation.
• Action Required :
• implement more robust policies and measures to prevent harassment in the work place, Update flexible working policies to give a right to flexible working from day 1.

10. Family Friendly Policies

Introduction of bereavement leave and better support for employees dealing with family issues such as paid carers leave.

• Pros:
• Enhances support for workers with families, improving work-life balance.
• Attracts talent looking for supportive work environments.
• Cons:
• Additional leave benefits can strain operational capabilities.
• Increased direct costs with more paid leave entitlements.
• Action Required :
• update and expand company policies on maternity, paternity, and carer’s leave; introduce new policies to cover bereavement leave

11. Zero Hours Contracts

Rights to a full contract for any zero hours contracted employee working regular hours for 12 weeks or more

• Pros:
• Provides pathway to stable employment for zero-hour workers.
• Improves predictability of workforce management.
• Cons:
• Reduces flexibility in staffing costs and staffing strategies.
• Potential decrease in workforce fluidity, impacting response to variable demand.
• Actions Required:
• Move all qualifying employees from Zero Hours contracts on to regular part time contracts

12. Fire and Rehire Tactics

Amending of redundancy and unfair dismissal law to give greater protection for employees from being forced to accept new terms and condition

• Pros:
• Encourages fair and transparent employment practices.
• Reduces the risk of reputational harm from unethical practices.
• Cons:
• Limits employer flexibility in renegotiating terms during crises.
• Could prolong untenable employment situations.
• Actions Required:  
• Revise or implement termination and rehire policies, improving fairness and transparency in line with legislative changes.

13. Health and Right to Disconnect

Requirement to implement strategies to better protect employee’s from mental health and manage stress,

Policies to limit out of hours contact and surveillance

• Pros:
• Supports employee mental and physical health, reducing long-term health-related costs.
• Protects personal time, potentially improving work-life balance.
• Cons:
• Compliance monitoring can be complex, particularly with remote work.
• Might restrict urgent communications and flexibility in some roles.
• Actions Required:  
• implement policies to address and enforce out of hours contact with employees. Update and implement policies for neurodiverse support & stress management

14. Trade Union and Tribunal Claims

Employers duty to inform employees of right to join a trade union.

Extension to time scales for filing a tribunal claim  

• Pros:
• Promotes fairness and transparency in employer-employee relations.
• Encourages more structured dispute resolution processes.
• Cons:
• Potential for increased frequency of disputes and union actions.
• Requires careful documentation and potentially more complex negotiations.
• Actions Required:  
• Update contracts of employment to include changes to union rights. Make sure all your policies are up to date and line managers are properly trained to minimise tribunal claims.  

15. Tribunal Claims Compensation

Possible unlimited tribunal awards for all claims

• Pros:
• Ensures adequate compensation for grievances, supporting justice for wronged employees.
• Deters employers from unlawful practices.
• Cons:
• Uncapped compensation can lead to significant financial risk.
• May encourage more tribunal claims, increasing legal costs.
• Actions Required:  
• Make sure all your contracts policies and operating procedures are up to date to limit the chances of ending up in tribunal.