UK 
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Following the Labour Party’s ascension to power, many changes are in process that could impact workforce management on a variety of fronts, including the recent Employment Rights Bill 2024. Please note this list is not exhaustive or intended as legal advice:
Employment Rights Bill 2024
Day-One Rights
The two-year qualifying period for protection against unfair dismissal is among the bill’s most important measures. Workers will now be entitled to safeguards like paternity leave, unpaid parental leave, and bereavement time off, starting on their first day at work.
Zero-Hours Contracts
The bill proposes guaranteed working hours following a predetermined duration of employment to combat the abuse of zero-hours contracts. In its “Next Steps to Make Work Pay” guidance, the government specifies 12 weeks as the suggested reference period.
Flexible Work
The Bill commits to make flexible working the default from day one for all workers, except where it is not reasonably feasible. Particularly in the pandemic’s aftermath, this reform underscores the trend toward more flexible work conditions. The government’s goal is clear: they want more requests for flexible work arrangements granted.
Right to Guaranteed Hours
To address the exploitation of zero-hours contracts, the bill introduces guaranteed working hours after a specified period of employment (the government’s stated preference is 12 weeks). This aspect of the bill has strong implications for industries that are heavy users of zero hours contracts, like adult social care.
Other Legislative & Policy Changes
Skill Development
The Labour Party is planning a new Skills and Growth Levy, allowing businesses to use up to 50% for non-apprenticeship training. A new body, "Skills England," will work with businesses to create an approved list of qualifications and training.
Allocation of Tips
The Employment (Allocation of Tips) Act 2023, which recently went live, mandates employers to allocate 100% of qualifying tips (excluding taxes) to workers. Employers must establish a written policy for tip distribution and follow a statutory Code of Practice, ensuring fair and timely tip allocation without discrimination. The Employment Rights Bill also proposes to strengthen this law by requiring all employers consult with their workers when developing tipping policies.
Worker Protections
The “Next Steps to Make Work Pay” document outlines further proposed reforms, including:
A Right to Switch Off: Employees may gain the right to not be contacted outside of working hours, except in exceptional circumstances.
Reporting on Ethnicity and Disability Pay Gaps: Large employers may be required to report these pay gaps, expanding the focus on gender pay equality.
Parental and Careers Leave: Reviews are under way to ensure these leave policies work for both organisations and workers, with potential reforms to come.
Preparing for Compliance
These changes will likely increase the cost of hiring temporary workers but will significantly enhance employment protections. Flexibility and workforce planning may also be impacted within some sectors, especially users of zero-hours contracts and/or shift patterns. It may take time for some of these reforms to come into effect, but there are steps employers can take now to prepare:
Assess current employment practices and conditions against the Employment Rights Bill to understand how changes affect your internal and external workforces.
Review current employment contracts and probationary period guidelines.
Review and update workplace policies and staff handbooks to align with the new regulations.
Consider changes to recruitment and onboarding processes to accommodate the upcoming changes.
For more insights on the latest UK workforce trends, including exclusive data on wages, hiring and in-demand skills, check out Magnit’s "Autumn/Winter 2024 UK Labour Market Report".
