Businesses Urged to Prepare for Major Employment Law Changes, Warn HR Experts

HR experts are advising businesses to get organised as the new Labour government embarks on its ambitious plan to overhaul employment law. Peter Jones, head of the HR Dept Swindon, North Wiltshire, and East Cotswolds, has highlighted the extensive legislative changes set to be implemented within the first 100 days of the new government. These changes mark the most significant shift in employment law in decades.

“We now have a new government, which outlined numerous planned changes to employment law in the Labour Party’s manifesto,” said Peter. “Now business owners need to bring in changes of their own to make sure they are ready for all the new legislation.”

Key aspects of Labour’s ‘Plan to Make Work Pay’ include banning zero-hour contracts and ending fire and rehire practices. These changes will particularly affect sectors like hospitality, which rely heavily on seasonal workers.

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From day one, employees will enjoy increased rights, including protection against unfair dismissal, enhanced parental leave, and extended sick pay. Statutory sick pay will be widened by removing the lower earnings limit and the waiting period. Other significant changes include offering flexible working from the first day of employment in most cases, addressing the impact of AI on jobs and skills, establishing a living wage that reflects the cost of living, and requiring large firms to develop action plans to close gender, ethnicity, and disability pay gaps.

Union rights will be strengthened, with plans to remove restrictions on trade union activities. There will also be a review of health and safety regulations, including those related to extreme temperatures and long Covid. Notably, the right to ‘switch off’ will be introduced to promote a positive work-life balance.

Specific changes aim to protect rights for self-employed workers, and a Fair Pay Agreement in the adult social care sector will tackle recruitment and retention issues.

Peter added: “From increasing tribunal rights, to extending statutory sick pay, to re-empowering the trade unions, many of the plans will have a significant impact on SMEs. However, Labour has said they will consult with businesses, workers, and civil society to implement their plans effectively.”

The HR Dept supports clients across various sectors, with a particular focus on manufacturing, IT and tech, and trades. It works with businesses in Swindon, Chippenham, Hungerford, Marlborough, Calne, Devizes, Burford, Lechlade, and Carterton.

For more information about the HR Dept Swindon, North Wiltshire, and East Cotswolds, visit HR Dept, email remy.morland@hrdept.co.uk, or call 01793 683 398.

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