October Saw The Biggest Shake-up in Employment Law in Decades.
October was a huge month for employers, with big changes announced that could reshape the future of work as we know it. The release of the 158 page Employment Rights Bill 2024 brought forward a wave of proposed new protections and policies, giving business owners a lot to think about—and prepare for.
As we move into final stretch of the year, understanding these changes isn’t just beneficial; it’s critical for every business looking to stay ahead in the evolving landscape of employment law.
Let’s break some of the main proposals down as to what these game-changing reforms mean and how you can prepare your business for what’s next.
And with the budget just announced impacting us business owners even more, there are now even more factors to consider as we move into 2025.
Let’s dive into what’s coming and how you, as a business owner, to can be prepared.
Day-One Unfair Dismissal Rights
What’s changing: The 2-year qualifying period for unfair dismissal claims will be scrapped, giving employees protection from day one. There will be likely to be more flexibility during the an ‘initial period’ (i.e probation period). The govt. preference for this is 9 months.
What to think about:
- Do you want to a make any decisions with respect to certain employees before the law comes into force?
- Review & refine your recruitment processes
- Review your probation processes: Ensure your onboarding and probation periods are solid and fair, with clear documentation.
- Educate managers now in actively managing employees during probation.
Statutory Sick Pay (SSP)
What’s changing: SSP will be payable from day 1, removing the current 3 day waiting period. All employees will be entitled to sick pay without an earnings threshold, BUT there will likely be a lower level of sick pay for lower earners.
What to think about:
- Do you have high level of absence rates? If so, establish why? Can you do anything to mitigate this?
- Budget for higher sick pay costs: With more employees eligible, costs may increase. These changes are scheduled to come into effect either during 2025 or 2026.
- Absence policies may need reviewing and updating.
Flexible Working Changes
What’s changing: Employers will only be able to refuse a request for flexible working where it is ‘reasonable’ to do so, in relation to one (or more) of the 8 statutory reasons for refusal.
What to think about:
- What can you as a business accommodate & why? Be clear on your why.
- Respond more thoroughly to requests: Ensure decisions on flexible working requests are well-documented. Get into the habit of including in the outcomes letter:
i) The reason(s) for refusal
ii) Why the refusal is reasonable
- Policies & Procedures: Whilst more guidance will follow on this which are likely to result in policies needed to be formally updated, it is worth reviewing your procedures now to ensure there is clarity in your process and documentation.
Fire and Rehire” Restrictions
What’s changing: It is proposed to effectively outlaw this practice, except in extreme circumstances, i.e when the business is in financial difficulties that would affect its ability to carry on.
What to think about:
- Bring any change programmes to the top your agenda in 2025. These proposed changes are due to come into force in 2026
- Review your mobility / variation clauses
Third-Party Harassment Prevention
What’s changing: Employers will now be liable for acts of harassment by third parties such as customers, clients, agency workers, contractors, unless you can show you have taken all reasonable to prevent the harassment from occurring. This will apply to ALL forms of harassment.
What to think about:
- Risk assessments will be critical here.
- Start thinking about what third parties do your employees come into contact with, what are the risk factors and what steps can you take to protect those employees.
Zero-Hour Contract Reform
What’s changing: There will be a ban on exploitative zero-hour contracts. Workers will have the right to guaranteed hours contracts if they work over a defined period (likely to be 12 weeks).
What to think about:
- Audit current working patterns: Assess whether zero-hour contracts are being used and how much of a challenge this might be for your business
Other changes proposed to be aware of:
- Unpaid Parent Leave and Paternity Leave becoming a Day 1 right
- Establishment of the Fair Work Agency (which is likely to help with the enforcement of the law)
- Enhanced protection from dismissal for pregnant employees and employees returning from maternity leave
The Silver Lining: Opportunities for a Stronger Workplace
These changes bring new standards for employers, but they do also offer business benefits such as:
- Enhanced employee loyalty: With stronger protections, employees feel valued and secure.
- Reduced turnover costs: Improved flexible working and leave policies contribute to higher retention.
- Stronger employer brand: Adapting to new standards shows your commitment to fair, modern workplace practices.
Your Next Steps
Don’t panic—implementation dates are phased, so you have time to prepare & I will keep you updated as and when they will be implemented. In the meantime, here’s what you can do now:
- Begin reviewing your policies and budget for necessary changes.
- Consider consulting with HR professionals (like me) to ensure you’re fully compliant.
- Look for efficiency gains to offset any increased costs these changes might bring.
Need more Guindance? Contact Me Today!
I’m here to help you navigate these updates and prepare your business for a stronger future.