Labour is planning to introduce significant changes to employment law that promise to strengthen employee rights and transform the workplace.
It’s all part of the government’s ‘Plan to Make Work Pay’ initiative. And while we don’t have the exact details yet, there will be a focus on improving terms and conditions for employees while increasing protections at work.
Small and micro firms are most at risk of falling foul of the changes to the law as they usually don’t have the ‘HR armies’ that larger corporates equip themselves with. SMEs are usually also far less aware of employment laws.
But it’s important to remember that these changes apply even if you only have one employee.
So, what can we expect to be on the agenda – and how can you, as the owner or MD of a smaller growing business, get ready?
Key areas of focus include:
• Adding more ‘day one rights’, such as unfair dismissal, flexible working, sick pay and parental leave
• Banning zero-hours contracts
• Enhancements to family leave
• Reviewing redundancy rights
• Reviewing national minimum wage
• Doubling the time employees have to raise a tribunal claim
The question I’m often asked as a HR professional is: ‘How do I prepare?’
The good news is that acting ahead of time can save your business time and money – and help you to avoid falling foul of the law.
Five tips to help you get ready
1. Revisit your employment contracts and employee handbooks. Are they up-to-date as the starting point for any upcoming changes?
2. If you’re currently using zero-hours contracts, clarify how many people have these and whether they’re still the best option. Look at how you’re currently monitoring hours worked each week and create a plan should zero-hours contracts become illegal.
3. Consider which areas of flexible working you’re currently using. What other aspects could be possible should the new laws state that flexible working must be provided unless there’s a good reason not to?
4. Start capturing data on your current salary spend. For the employees paid at national minimum wage, break this data down into the number of employees per pay bracket based on age. This will give you an idea of the financial impact should a single rate be introduced.
5. Plan for who’ll need to be informed, and how you’ll do this, should sick pay become payable from day one of absence.
Kat Derbyshire, Director at Black Kat HR, specialises in helping growing businesses to get things right and get things done when it comes to being an employer.
For more information, visit: blackkat-hr.com
