When there are major changes that affect employment law (such as a new party coming into power and a new Prime Minister who plans to rip up the employment rule book and start again), what could be more reassuring than knowing that you can access information written specifically for the aftermarket, and be a part of a subscription that will round up all of these changes for you?

Not all changes to employment law make the headline news, either. For example, did you know that carers’ allowance increased in April? What about the recent changes to paternity leave or flexible working requests?

We know that the weight of information can sometimes feel overwhelming, especially when you have so much more to be getting on with in your day. That’s why we keep our subscribers updated with weekly emails to ensure that they know all about any changes with only the click of a mouse.

With Labour winning the General Election on 4th July, changes are imminent. For those of you who don’t have a subscription with HR Vitals yet, here’s a summary of some of Labour’s manifesto and how their proposals will affect the aftermarket:

1.            More day-one rights

Will it impact the aftermarket?

Yes.

How?

When an employee first joins your company, you don’t need to do everything that is included in the law immediately; some rights are only activated after working for the company for a number of months (or even years). But soon, employees could be entitled to a lot more from their first day of employment, including the right to a fair dismissal, sick pay, and parental leave.

Not a lot of definitive information has been given about these rights yet, but we will be keeping an eye out for our subscribers to let them know as soon as we do.

  • Changes to disciplinary procedures

Will it impact the aftermarket?

Yes.

How?

With the day-one right to a fair dismissal, this means no more quick dismissal processes, and we may also see the end of short-service dismissals.

Instead, we will have to do the full disciplinary process, costing you more in salary payments. Employers will also have to prove that they followed the ACAS Code Of Practice on disciplinary and grievance procedures, relying on the existing “fair” reasons for dismissal (such as redundancy, conduct, capability, breach of a statutory obligation or some other substantial reason).

3.            To deliver a genuine living wage

Will it impact the aftermarket?

Yes.

How?

This change could be one of the first to be implemented through secondary legislation and, if so, employers with younger employees or apprentices may find this a costly change.

4.            SSP from day one of sickness

Will it impact the aftermarket?

Yes.

How?

The waiting period for SSP is likely to be removed, making it another day-one right. This means that employees will get paid from the first day of sickness (not after four days, as it currently is), which will also change how beneficial it is to offer Company Sick Pay.

5.            Extending tribunal claims

Will it impact the aftermarket?

Yes.

How?

Labour is working to extend the time to six months (stating that three months is too short for discrimination complaints). This means that it will be easier for employees and ex-employees to make a claim, having longer to do so, and therefore, increasing the chance of the employer being taken to court.

It could also mean that you have to wait six months after terminating a contract to find out if the employee is trying to take you to court.

6.            Improved work-life balance

Will it impact the aftermarket?

Maybe.

How?

Do you message employees outside of working hours? Are you contacting people when they are meant to be on annual leave? These things will probably need to stop, as Labour is keen to reinforce a work-life balance and a “right to switch off”, which could mean clearer boundaries to being off work.

7.            Protecting employees against sexual harassment

Will it impact the aftermarket?

Yes.

How?

This one isn’t technically a new Labour law as it was already coming in September, but this new law will mean that you must now prove that you, as a company, are proactively protecting your employees against sexual harassment. This includes third parties and anyone the company interacts with.

There may be more to it than just signing an agreement, as well, including training and implementing new policies to ensure that you aren’t putting yourself at risk. Whatever is needed, we will be guiding our subscribers through it.

8.            More rights for employers returning from maternity leave

Will it impact the aftermarket?

Yes.

How?

It will soon be unlawful to dismiss pregnant employees for six months after returning from maternity leave (except in specific circumstances).  We don’t know what those specific circumstances are yet, but this means there are likely to be some exclusions.

9.            Removing the status of worker

Will it impact the aftermarket?

Unlikely.

How?

In employment law, people are classed as employees, workers, or self-employed. These definitions can get confusing, so Labour is looking to merge “employee” and “worker” into one status. This doesn’t happen often in the aftermarket because we are short-staffed and everyone is simply employed or self-employed, so we are unlikely to experience this change.

10.         Changes to zero-hour contracts

Will it impact the aftermarket?

Unlikely.

How?

It is extremely rare for an employee in the aftermarket to be on a zero-hour contract, but if someone repeatedly (12 weeks or more) works a set amount of hours, then they will have the right to turn this into a permanent contract and to be guaranteed the hours.

Labour is also proposing that workers get a right to “reasonable notice” of any change in shifts and that, if a shift is cancelled or curtailed, compensation paid is proportionate to the notice given, ending “one-sided flexibility”.

11.         Prevention of firing and re-hiring

Will it impact the aftermarket?

Unlikely.

How?

This proposal is to ban dismissing employees who refuse to agree to changes in their contracts and then offering to re-employ them on new terms. Labour is also looking to bring in a new Code of Practice to support this. However, you are all continuously improving the terms and conditions of your contracts and, therefore, would not fire an employee to re-employ them on fewer terms and conditions.

12.         Menopause action plans

Will it impact the aftermarket?

Yes.

How/Why not?

Employers with more than 250 employees must produce menopause action plans. This is for larger employers, so we probably won’t be affected by this one. Whilst you have less than 250 employees – your competitors do not, meet their standards and you will improve your recruitment and retention.

13.         Ethnicity and disability pay gap reporting

Will it impact the aftermarket?

No.

How/Why not?

Employers with more than 250 employees will have to monitor and report on ethnicity and disability pay to mirror the current gender pay gap reporting rules. Employers will need to publish an action plan outlining how they will close any pay gap. Again, this is for larger employers but you should consider doing it too.

What are we doing to help our subscribers?

Mainly, we are helping to make these changes as smooth for our subscribers as possible, as these changes will likely see the need for new employment contracts, revisions to HR policies and procedures, and training for managers on how to function in practice.

We are already preparing for this by building online training courses, looking into reviewing the terms and conditions of our employment contracts and Employee Handbooks, and hosting webinars to discuss the changes in more detail.

Our subscribers will be first in line to take the next steps with us, as we ensure that they are on top of whatever’s to come over the next few months.

If you would like an easy solution to keeping on top of any legal changes, remaining legally compliant, and weekly tips and advice on relevant topics, become a Vital Employer with us!