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While there has been concern around Labour’s proposed employment law reforms,
small business owners and employers should take a balanced view, or at least wait
until we are all clear what the changes will be.
The reforms may well not cause the level of disruption that some fear. Here's why:
1. Government Assurances for SMEs
In a recent meeting, Labour ministers, including Angela Rayner and Jonathan
Reynolds, reassured small business owners that their interests would be carefully
considered in the upcoming workers' rights overhaul. They emphasised that reforms would not damage small businesses, and that their input would shape the final
policies.
Whatever your political persuasion, the promise of consultation and a focus on SMEs
at least gives employers hope that they may not face changes that are overly
burdensome.
2. Time to Prepare
Though Labour has outlined potential changes like a “right to switch off”, and an end
to zero-hours contracts, details are still forthcoming. We already include a right to
switch off in most of our client handbooks, and have never advocated the types of
one-sided zero-hours contracts that Labour says it is trying to outlaw.
An Employment Rights Bill is expected to be tabled soon, but depending on whether it
is primary or secondary legislation, the rollout period should allow businesses time to
prepare. Moreover, the Government’s approach to consulting with businesses
suggests that many reforms could be gradual, with a clear implementation timeline.
3. Consideration of Small Business Needs
Labour acknowledges that small businesses face different challenges to larger
organisations. Entrepreneurs present at recent meetings, like Carly Cannings from
The Happy Business School, highlighted the need for balance between protecting
employee rights and maintaining business agility. This recognition from Labour
suggests that reforms should aim for fairness without unduly restricting small
businesses’ ability to operate efficiently.
4. Fairer Workplaces Can Benefit Employers
Many of Labour’s proposed reforms, such as making workplaces more family-friendly,
or increasing protections from day one of employment, may benefit employers who
embrace them in the long term. These changes can lead to improved employee
satisfaction, lower turnover rates, and increased productivity. It is always worth
remembering that a fair and supportive working environment tends to foster greater
loyalty and effort from employees.
5. Reforms Focus on Fairness, Not Punishment
As Labour aims to make the working environment more equitable, they insist their
reforms are not designed to penalise businesses but to ensure fairness. The proposed
adjustments to employment definitions, working conditions, and employee rights are
aligned with broader social trends, so those businesses already compliant with current
laws are unlikely to face significant disruption.
Conclusion: No Need for Panic
It appears that Labour's employment law reforms are not being rushed through
without due consideration. By engaging with the business community, and providing
assurances to SMEs, Labour is making clear that the reforms will be developed gradually, with both fairness and practicality in mind. Employers should stay informed
and seek advice where necessary, but there is no immediate cause for panic.
This careful approach from Labour, combined with the longer timeline for
implementing some changes, means that businesses have time to adapt and respond
constructively.
Especially BackupHR clients - we help to protect you with detailed handbooks and
tailored contractual documentation. So, as legislation changes or case law sets
precedence, our clients understand how to comply and have the right policies,
procedures and processes in place, to reduce the risk of Tribunals.
If you are not a BackupHR client but would be interested in engaging our services
either on an ad-hoc basis to review/update your existing contractual documentation, or
on a retained basis when this would be part of our core service, we would be happy to
have a no-obligation discussion to talk through your needs in more detail.
The guidance provided in this article is just that - guidance. Before taking any action, make sure that you know what you are doing, or call an expert for specific advice.
As always, we are here to guide you through any changes, and our next free webinar
will explore the Autumn Statement, and recommended actions for you to take to
ensure your business remains compliant and proactive.
We also run public training courses throughout the year on a range of people
management and employment law topics - our Autumn programme includes:
Core Skills for Managing People – 17 th October 2024 – Quy Mill Hotel, Cambridge
Confidently Resolving Conflict – 21 st November 2024 – Park Farm Hotel, Hethersett
If you would like to receive invitations to our free webinars and/or want to book any
places on the above training courses, please email Jackie Bolton.
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