It’s starting to turn colder now, the winter jackets are coming back out and the leaves are changing colour. But they’re not the only things changing this autumn, because the UK employment landscape is also going through significant transformation.
While September was relatively quiet on the legislative front (with only the notable cancellation of the previously anticipated Workers Act), October is set to usher in a wave of important changes that will reshape the relationship between employers and employees. So what are the main changes you should be aware of as an SME leader?
Day one right to claim unfair dismissal
The Labour government plans to make unfair dismissal a day one right, a major employment law reform that they intend to introduce within their first 100 days in government. Whether it goes ahead or not is uncertain, and details are actually scheduled to be shared later today when the Employment Rights Bill will be read.
Until then there’s a lot of guesswork about the details. That said, they’ll need to consult with ACAS, employment lawyers, trade unions and businesses (some of whom will resist the new mandate), so it’s unlikely to be enacted quickly.
Hands off the tips jar
It’s hard to believe that Managers would be so cruel as to take their employees’ tips at a cafe or restaurant and claim it as their own, but (*sigh*) there you go. A much welcomed mandate, The Tipping Act is coming into effect on October 1st, promising to bring fairness and transparency to the hospitality and service industries.
This groundbreaking legislation mandates that employers distribute 100% of tips and service charges to their workers, with only legally required deductions permitted. To ensure compliance and promote openness, businesses will need to implement written policies on tip allocation and maintain detailed records for three years. A win for waiters and service staff around the country.
Hands off…in a very different context
Later in the month on October 26th, the Worker Protection Act (an amendment of the Equality Act 2010) will take effect, introducing a new duty for employers to take proactive steps in preventing sexual harassment in the workplace.
This is a new mandate that protects employees and no doubt will create safer and more respectful work environments, with tribunals given the power to increase compensation by up to 25% for employers found in breach of this duty. As an SME leader this is particularly worth noting, as there’s no cap on these claims so the uplift could be material.
A failure to comply with this duty could also lead to an investigation and enforcement action by the EHRC (the Equality and Human Rights Commission), which of course nobody wants. Scary stuff! To avoid this, SME leaders should be proactive and preventative, anticipating scenarios where workers might be subject to unwanted conduct of a sexual nature during their work, and – this is the key – take steps to prevent something bad from happening.
The important thing is not to wait until there’s been an incident to take action. This isn’t just harassment of your workers by other staff but also by third parties – i.e. clients, customers, members of the public, etc.
Let’s pencil it in the calendar
Also anticipated in October is the revised Workers Predictable Terms and Conditions Act. This will give a statutory right to workers to request a more predictable working pattern where their working pattern is unpredictable (which includes those on a fixed-term contract for less than 12 months).
Another noteworthy change is around neonatal care. Soon employees will have a new day-one right to take up to 12 weeks of leave if a neonate (a child aged 28 days or younger) is admitted to hospital for a continuous period of seven days or more. These changes should come into effect in 2025.
A lot of these changes are for the better, and I’m excited about championing workers’ rights and introducing positive changes around neonatal care. That said, as a leader you really don’t want to find yourself caught on the wrong side of these mandates.
I’d always advise seeking professional guidance to fully understand how these changes may impact your specific situation, and being proactive about implementing these new changes into the workplace. Drop us a line via hello@thehrhub.co.uk or give us a call on 0203 951 1208.If you don’t want to speak to anyone but would like to learn more, read my book The MAGIC of HR.
