Labour promised to make work pay. They promised to overhaul the employment legislative landscape to get better pay and conditions for the UK’s 33.09 million employed workforce.
They meant business.
Many of their planned reforms hit the headlines. From banning unpaid internships and zero hours contracts to employees having the right to request flexible working arrangements from day one. The latest radical plan to introduce a 4-day working week for full time employees is also big news.
But what other reforms can we expect in the last quarter of 2024 that haven’t quite made the front pages?
Irwell’s Senior Class Underwriter in Legal Expenses, Billi Cobley summarises seven changes employers should be prepared for to avoid exposing themselves to the risks of costly, stressful and time-consuming tribunals.
1. Stable and predictable contracts
Workers with unpredictable working hours, or a fixed-term contract of less than 12 months, will have a right to request a more stable and predictable contract after 26 weeks of service.
2. Fire and re-hire
A new statutory code of practice will set out a procedure for employers to follow when considering dismissals for employees who do not agree to changes to their terms and conditions.
3. Harassment and bullying
A duty requiring employers to proactively prevent sexual harassment by taking “reasonable steps” will be introduced.
The Bullying and Respect at Work Bill proposes a statutory definition of bullying and will allow employees to bring a standalone claim in a tribunal.
4. Pensions
Under proposed pension auto-enrolment rules, the lower earnings threshold will be removed and those aged under 22 will be in scope of the scheme.
5. Gender pay gap
Regulatory exemptions from gender pay gap reporting will be extended to businesses with fewer than 500 employees.
6. Paternity leave
Legislation will be introduced to allow employees to take paternity leave within the first year after the birth and also split the leave into two blocks as long as they give 4 weeks’ notice of the dates when they wish to take the leave.
7. Neonatal care leave
Under the Neonatal Care (Leave and Pay) Act 2023, parents of babies who are admitted to hospital before 28 days old for at least one week will get a maximum of 12 weeks paid statutory leave in addition to their maternity or paternity leave.
Tribunals on the rise
In 2023/24, employment tribunal receipts and disposals increased by 7% and 16% year-on-year. Meanwhile, open cases increased by 3% to 653,000 over the same period.
This rise in cases underscores the need for an appreciation of employment legislation, having preventative measures and HR policies in place – and legal expenses protection that can ease the burden should a legal issue arise.
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