With the Government signalling imminent significant shifts in employment law, UK businesses are awaiting the full details of the proposed legislative changes. These reforms, if implemented, will reshape how employers operate and offer greater protections to employees.
As part of its plan to ‘Make Work Pay’, The Employment Rights Bill is likely to change multiple aspects of employment law. Although the precise measures are yet to be announced (all the predictions point towards Thursday 10th October), there are three key proposals that we expect to create ripple effects across the financial sector:
Rights to claim unfair dismissal from Day One
Right to demand/request flexible working
Right to disconnect.
In this article, Mike Clyne, Founder of FeMan Consulting, breaks down what these changes could mean for both employers and employees.
Rights from Day One: Redefining job security
One of the most anticipated changes is the new Government’s intention to introduce the right to claim unfair dismissal from the first day of employment (currently it is two years). The legislative change would grant workers immediate protection and, many think, result in a significant increase in tribunal claims.
What this means for businesses
Most commentators are predicting that rather than ending up as a Day One right, there will be some sort of opportunity to delay the right to claim unfair dismissal until the end of a probation period and that this will probably be set at up to six months. As always, the detail of this will be critical to assess the potential impact.
For businesses, this change would increase the thorough consideration of employment contracts, onboarding processes and dismissal procedures. Without a two-year cushion, every employment decision could be scrutinised from day one in adding protection for employees while placing new burdens on companies to avoid costly legal disputes.
Flexible working: Productivity vs flexibility
Much has been made of comments by the Business Secretary regarding flexible working. Some press articles have signalled this as a ‘Right to a Four Day week’ or ‘Right to Work from home from Day One’.
Unsurprisingly, there has been a significant input from business organisations that are concerned about the tilt in the right to request flexible working. Employees currently have the right to make this request and employers must deal with the requests in a ‘reasonable manner’ but some pressure groups have moved this to a case that would be nearer to the obligation for an employer to have to demonstrate a significant business reason not to allow this change.
Similarly, there have been moves to allow people to work compressed hours (same weekly hours over fewer days for same pay). Whilst I think the Government will make noises about how employers should consider this I do not think they will bring forward legislation to compel organisations to have to acceded to requests of this nature.
What this means for businesses
This month’s cliché will be ‘The devil is in the detail’. We need to see the proposed legislation and hear more specifics from the relevant Government departments to understand where we may be going.
There have been many studies investigating whether companies can maintain productivity levels with fewer working days and there are many different findings that can support any point of view.
The ebb and flow of the recruitment market will continue to change how businesses are needing to explore flexible approaches to work in order to be able to attract and retain people. Time will tell if the legislation will accelerate these changes or make businesses hesitate to invest in new staff.
Right to disconnect: Boundaries in the digital age
In the post-pandemic world, where remote and hybrid working models have become more common, the ‘Right to Disconnect’ has been mooted to give employees clearer boundaries between work and personal life. This proposal could mean employees would no longer be required to respond to work-related communications outside of contracted hours.
What this means for businesses
Theory vs Reality. Anyone expecting a legislative change to transform the lot of a junior M&A banker or a trainee lawyer is likely to be sorely disappointed. Whilst Ireland, Spain and Belgium (among others) have introduced such changes, I don’t foresee new UK rights to be absolute, instead looking to a general pattern of the expectation to work outside of ‘normal’ hours. And in any event, I will predict this will only be a theoretical introduction that may not see the parliamentary process for a couple of years – if at all.
Next steps
As soon as the reforms are announced (expected to be Thursday 10th October), the team at FeMan Consulting will update you on the precise details. Please contact us to find out how FeMan Consulting can support your business and the implications of these legislative changes as they develop.