Are you aware of the potential business changes as a result of the general election?

Welcome to the latest edition of our newsletter.  

In this edition we are going to explore some of the potential business changes that could be on the horizon following the recent UK general election outcome. 

The 2024 general election outcome means that major employment law changes could be on the way. The new Labour government proposed a plan to make new laws within the first 100 days in parliament with changes to contracts, pay, day one employment rights, time off and lots more. 

Statutory Sick Pay
One of the first likely changes to be made is to statutory sick pay (SSP) with a plan to increase it, remove the lower earnings limit and remove the waiting period. Currently SSP is £116.75 per week and employees must have been sick for more than 3 days in a row and earn an average of at least £123 per week to be eligible.
 
Flexible Working
2024 has already been a huge year for employment law changes with the new Flexible Working, Carer’s Leave, and the Protection from Redundancy (Pregnancy and Family Leave) laws coming into force.
 
The flexible working changes made in April meant that employees have the right to request flexible working from day one of employment rather than having to be employed for at least 26 weeks before making a request. Labour plan to take this a step further by making flexible working a right from day one of employment, except where it is not reasonably feasible.
Labour will also review the unpaid Carer’s Leave law that came into effect in April 2024 and examine the benefits of introducing paid carer’s leave.
 
Removal of Qualifying Period for Unfair Dismissal
Labour have proposed to remove qualifying periods for unfair dismissal and parental leave, making them a day one right. Currently you must have worked for your employer for a minimum of 2 years before qualifying for the right to claim unfair dismissal at a tribunal.
 
As for parental leave, you must have worked for your employer for a minimum of 1 year to be eligible.
 
Zero Hours Contracts
The final topic is the potential ban on zero-hour contracts. The proposal is to ensure that everyone has the right to a contract reflecting the number of hours they regularly work (basing on a twelve-week reference period). This decision could impact businesses nationwide, requiring them to revise their employees’ contracts to comply with new regulations.
 
If and when these changes come into effect, employers will need to ensure they are aware of the changes impacting their business. Adjustments to any policies, employment contracts and handbooks with the changes will need to be actioned quickly after new laws come into force.
 
Please get in touch if you wish to discuss how to manage any of these changes within your business, or any other matters relating to employment legislation.