Labour’s promise of ‘Delivering a New Deal for Working People’
All businesses are aware that the current government will be making significant changes to employment law which will impact on the way that all businesses manage their employees.
It currently appears that the vast majority of changes are not expected to come into effect until sometime in 2026. It may however be very useful for employers to review their practices are now in order to be ready for the changes once they are introduced. Some examples are set out below:
- Flexible working – whilst an employer is likely to be able to continue to rely on the existing statutory grounds to refuse a flexible working application, the proposed Employment Rights Bill says that any refusal must be reasonable and an employer must explain why a request has been refused.
It is likely that there will be more requests for flexible working and what is considered to be “reasonable” is likely to only be clarified as tribunal claims make their way through the system.
- Day one unfair dismissal rights – this is likely to be the biggest change for businesses as it will give employees significantly more job security from day one.
There will be an “initial period of employment” where the test for unfair dismissal will be modified in order to allow termination more easily on the grounds of conduct capability, some other substantial reason or illegality. At the moment, the government is consulting on how long this initial period will be but current indications are it will be nine months.
This right will have to dovetail with the current ACAS Code of Practice and we will have to wait and see how the test for unfair dismissal will be modified.
Employees should start to get into the habit of consistently reviewing probationary periods, noting down any issues with performance or conduct and ensuring line managers are trained. There is likely to be an increase in tribunal claims which will put a strain on an already busy tribunal system.
- Statutory Sick Pay will now be available from the first day of illness. If a business is not pay enhanced company sick pay, it is likely that the costs for Statutory Sick Pay will increase.
- A right to switch off from work – it is likely that there will be a new Code of Practice to require employers to engage with their employees and union reps to agree a right to disconnect policy.
It is unlikely this will be a free standing claim but it may factor into grievances, discrimination claims and impact on compensation awards.
- Time limits to bring tribunal claim are likely to be extended from three months to six months – claims may therefore be received when memories are fading and employers should consider keeping detailed and accurate notes and potentially taking witness summaries if they believe a claim will follow.
- There may also be an ability for employees to raise collective grievances about conduct at work – this could mean significant disruption for employers and involved a significant amount of time.
- It appears there may also be an increase in the compensation limit for breach of contract claims (raising it from £25,000-£100,000) and also allow employees to bring breach of contract claims even when they are still employed.
These are only a few of the proposed changes and the sooner employers can modify their practices to anticipate the impact of these changes, the more likely it is that they will be able to adapt quicker to a new employment world.
