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How Will the Latest Employment Law Reforms Affect You?

On 2nd October, Chancellor Jeremy Hunt announced that from April 2024, the minimum wage in the UK will be going up to £11 per hour (it is currently £10.42). But that isn’t the only thing that’s set to change in the world of employment in the coming months. Since the government’s dropping of the Employment Bill in 2022 – sorry if you missed it! – there has been a series of employment reform announcements from Number 10; you are forgiven for struggling to keep up as it’s quite a minefield. The idea is (we believe) to have a series of new Acts, or legislation, that are designed to provide improved, more focused guidance for employers and employees rather than the potential loopholes in a one large, all-encompassing Bill of Parliament.

So, what are these new employment law reforms and how could it affect employers and employees going forward?

Latest employment law reforms in 2023

To ‘amend’ the Employment Bill in the UK, the government is proposing a series of employment law reforms, or legislation. These changes have resulted in businesses having to review their current HR processes to ensure they are in alignment with employment law regulations. So what are they and what does it mean for you? 

  • Carer’s Leave Act 2023. This will provide employees who share caring responsibilities the right to one week’s unpaid leave per annum. Employers will now need to make sure they have the resources in place to allow employees dedicated time to care for a dependant who needs long-term care, and they can ask for it from day one of employment. 
  • Employment Relations (Flexible Working) Bill. Employees will have the right to request flexible working, as well as variations, to certain employment terms and conditions. The overriding change is that employees no longer have to wait the 26-week qualifying period before asking for flexible working – they’ll be able to do this from day one of employment. It is currently on its way to the Third Reading stage. 
  • Neonatal Care (Leave and Pay) Act 2023. This Bill will provide employees who are responsible for children receiving neonatal care the right to take up to 12 weeks of paid leave, in addition to statutory maternity and paternity leave. This Bill is scheduled to take effect from April 2025. 
  • Worker Protection (Amendment of Equality Act 2010) Bill. This new bill will, for all intent and purposes, bring back an employer’s duty to protect their employees from third-party harassment and impose another duty on employers – they must take all reasonable steps to prevent sexual harassment. They’ve also given the Tribunal powers to uplift compensation by 25% if this doesn’t happen. However, despite the Bill having had its second reading in both Houses and is at the Committee stage in the House of Lords, there are rumours support for the Bill could be dropped. 
  • Protection from Redundancy (Pregnancy and Family Leave) Act 2023. This extends redundancy protection to employees who are pregnant or returning to work after family leave. Pregnant employees will be covered from the time they tell their employer they’re pregnant and through to 18 months after birth. This will also cover employees coming back to work after maternity leave, shared parental leave and adoption for a minimum of six months. Having already received Royal Assent, this Bill will be implemented in due course. 
  • EU Retained Law (Revocation and Reform) Bill. Originally, this Bill was to revoke all retained EU law by the end of 2023, unless it had been expressly transferred into law in the UK. However, the government has changed their mind on this and in the future, only laws identified by the government will be revoked. But it doesn’t end there as the government introduced new employment law reforms under this Bill, namely Working Time Regulations, TUPE, holiday pay and non-competition clauses.
  • Strikes (Minimum Service Levels) Bill. Albeit controversial, the Bill is intended to change the legal framework that governs industrial action to ensure minimum service levels are maintained during strike action in certain industry sectors. It is also looking to change unfair dismissal rights – this means that any worker that is identified as requiring to work during a strike, but go ahead and strike, could lose their automatic unfair dismissal protection. As you might expect, there has been a lot of opposition to the Bill along with multiple amendments and counter-amendments, which are currently being debated. 
  • Employment (Allocation of Tips) Act 2023. Often a much-discussed issue, this new Act will make sure that any tips, gratuities or any other service charge paid by a customer will be allocated to the workers. 
  • Miscarriage Leave Bill. Losing a child to miscarriage is very stressful and this Bill is to grant three days of statutory paid leave to employees who have gone through a miscarriage, ectopic or molar pregnancy before 24 weeks. Although it is set for a second reading on 24 November 2023, the House isn’t sitting that day so, watch this space on this Bill. 
  • Fertility Treatment (Employment Rights) Bill. This Bill is proposing the statutory right for an employee to take paid time off work for fertility treatment appointments and other associated purposes. However, as with the Miscarriage Leave Bill, it may not get its second reading as it is due on 24 November 2023.
  • Bill of Rights Bill. Another controversial reform proposed by the government, its aim is to repeal the Human Rights Act 1998 and create a new domestic human rights framework for the UK. However, although it was introduced to Parliament in June 2022, a Joint Committee on Human Rights urged the government not to go ahead with it. So, as it waits for its second reading, there is doubt whether it will happen, particularly after Dominic Raab’s departure.
  • Workers (Predictable Terms and Conditions) Bill. This is a Private Members’ Bill with the aim of giving workers and agency workers the right to request predictable terms and conditions of work. The House of Lords is due to consider the Bill and it is supported by the government so, it is likely to be implemented at some point in the future.
  • Data Protection and Digital Information (No. 2) Bill. This is essentially about making the current EU GDPR regulations more practical and less of a burden for businesses that are in a low risk situation, yet still retain a high data protection. It is currently at its Report Stage and Third Stage Reading in the House of Commons so, it is likely to be implemented at some stage in the future.

As well as these reforms, the government is also conducting a series of consultations on other employment related matters.

What does this mean for businesses?

As and when the above reform Bills and Acts are implemented, businesses will have to address and amend their HR policies and procedures. For some, they may already have the resources in place but for others, it could be a complicated process.

These changes may well have an impact in recruitment in the future as companies will need to adapt accordingly and integrate the reforms in their recruitment plans. There are arguments for and against the reforms. Although some might not make it through Parliament and some are unlikely to be implemented until 2025 and beyond, preparation is key.

With all these new employment changes, we understand it can be confusing to keep up but we will always ensure our clients and candidates are ahead of the game and ready.

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