How the King's Speech Will Change UK Employment Law and What It Means for Your Workplace
- 3 Min Read
Explore the impact of new UK employment laws from the King’s Speech. Essential guide for employers on upcoming workplace changes.
- Author: HRD Connect
- Date published: Jul 23, 2024
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Image Source: GOV.UK
The King’s Speech on 17 July 2024 announced big changes for UK employment law. These reforms are designed to boost workers’ rights and job security. For employers, this means new challenges and opportunities, and it’s time to start planning how to adapt.
Key Reforms and What They Mean for You
The new Labour government has a bold plan with two main pieces of legislation: the Employment Rights Bill and the Equality (Race and Disability) Bill. These changes will affect how employers and employees interact and work together.
Employment Rights Bill
This bill is being called “the biggest upgrade to workers’ rights in a generation” and is expected to be introduced soon. Here’s what you need to know:
- Ban on exploitative zero-hour contracts
- If you use zero-hour contracts, you’ll need to switch to contracts that reflect regular working hours. This might mean rethinking how you staff your business, especially if you rely on flexible work arrangements.
- Ending “Fire and rehire” practices
- You’ll need to go through more thorough consultation processes before changing employment terms. This could make restructuring more complicated, so planning ahead is important.
- Day-one rights
- Employees will get key benefits like sick pay and parental leave from their first day on the job. You’ll need to update your HR policies and onboarding processes to comply with this change.
- Flexible working as default
- Be ready to accommodate flexible working requests from day one, as long as it’s reasonable. This could mean big changes to how you manage your workforce.
- Strengthening trade unions
- With easier union recognition and fewer restrictions on union activities, you might see more union influence in your workplace. It’s a good idea to start thinking about how to engage with unions constructively.
- Fair work agency
- This new body will enforce workplace rights more strictly, so make sure your compliance measures are up to scratch to avoid any issues.
- Fair pay agreement for adult social care
- If you’re in the social care sector, you’ll need to meet new pay standards. This might require some strategic financial planning to manage the impact.
Equality (Race and Disability) Bill
This bill is all about promoting equality in the workplace, focusing on race and disability:
- Mandatory pay gap reporting
- If you have 250 or more employees, you’ll need to report on ethnicity and disability pay gaps, in addition to the existing gender pay gap reporting. Get ready to gather more detailed data.
- Equal pay claims
- The process for bringing equal pay claims related to race and disability will be simplified, which could lead to more claims. Make sure your pay structures are fair and transparent.
Getting Ready for the Changes
Even though we’re still waiting for all the details, there are steps you can take now to prepare:
- Review your policies: Start auditing and updating your HR policies to align with the proposed changes, especially around day-one rights and flexible working.
- Collect data: Improve how you collect and analyse workforce data, particularly regarding ethnicity and disability, to get ready for expanded pay gap reporting.
- Plan strategically: Think about how these changes might impact your business model and staffing strategies. Develop plans to adapt while staying competitive.
- Train your team: Make sure your managers and HR professionals are up to date on the new legal landscape and understand how it will affect daily operations.
- Engage with unions: If you have unionised employees, start thinking about how to engage with unions constructively under the new framework.