August 2024

New Government Brings New HR Policies: What SMEs Need to Know

With a new government in place, several significant changes to employment law are on the horizon. These changes aim to enhance employee rights and protections, but what does this mean for small businesses?
Tina Holt, HR Director, details the latest updates and their implications.

Key Changes in HR Compliance

Day-One Rights for Unfair Dismissal

• Status: Proposed

• Details: Under the new government, employees will have the right to unfair dismissal protection from the first day of employment, eliminating the previous two-year qualifying period. This would require SMEs to handle dismissals with the same level of care from the very start to avoid unfair dismissal claims.

• Implications: If this policy comes into effect, SMEs must improve their recruitment processes to ensure they hire the right candidates and manage performance rigorously from the get-go.

Flexible Working Requests

• Status: Implemented

• Details: Employees can now request flexible working from their first day of employment and make up to two requests per year. Employers must respond within two months and provide a valid reason if denying a request.

• Implications: SMEs may need to adapt their operational flexibility to accommodate these requests, balancing employee needs with business requirements.

Carer's Leave

• Status: Implemented

• Details: Employees are entitled to one week of unpaid leave per year to care for dependants, effective from the first day of employment.

• Implications: SMEs must incorporate this leave entitlement into their HR policies and plan for any potential disruptions.

Redundancy Protection for Pregnant Employees

• Status: Implemented

• Details: Enhanced protections require employers to offer suitable alternative employment to pregnant employees and those on family leave, extending up to 18 months post-birth or adoption.

• Implications: SMEs need to carefully plan redundancies and ensure compliance with these new protections.

Did you know: Brought in as part of the 2017 reforms to the Loi Travail (labour law), the French ‘right to disconnect’ allows employees to not receive, or to be able to ignore, all digital forms of work communication – phone calls, emails, texts, etc – outside of their defined and contracted working hours. 

Right to Disconnect

• Status: Proposed

• Details: A new policy provides employees with the right to disconnect from work communications outside of working hours.

• Implications: SMEs will need to develop HR policies and build on their work culture to respect this right while maintaining operational efficiency.

Zero Hours Contracts and One-Sided Flexibility

• Status: Proposed

• Details: The government plans to ban exploitative zero hours contracts and ensure all jobs provide a baseline level of security and predictability.

• Implications: SMEs using zero-hours contracts must review their employment practices and consider more stable arrangements for their workers.

Single Enforcement Body

• Status: Proposed

• Details: Establishing a Single Enforcement Body to enforce workers’ rights, including strong powers to inspect workplaces and take action against exploitation.

• Implications: SMEs need to be prepared for more coordinated and proactive enforcement of employment laws.

Family-Friendly Rights

• Status: Proposed

• Details: Reviewing and improving family-friendly rights, including better parental leave policies and protections for pregnant workers.

• Implications: SMEs will need to update their family-friendly policies to align with new legislation.

Menopause in the Workplace

• Status: Proposed

• Details: Thousands of women are struggling at work due to a lack of support in dealing with symptoms of menopause. The new government will require large employers with more than 250 employees to produce Menopause Action Plans, similar to gender pay gap action plans. These plans will outline how employers will support employees through menopause. Additionally, guidance will be published for small employers on measures to consider, such as uniform and temperature adjustments, flexible working, and recording menopause-related leave and absence

• Implications: Menopause is a hot topic (no pun intended) and it’s great to see that women are being considered in this new piece of legislation. SMEs should take note of the upcoming guidance and consider implementing supportive measures for employees experiencing menopause to foster an inclusive workplace and enhance employee wellbeing and productivity

Are These Changes Set in Stone?

Not yet. While some changes, such as flexible working requests and carer's leave, have already been implemented, others, including day-one rights for unfair dismissal and the right to disconnect, are still proposed and awaiting final legislation. The new government has made clear commitments to these reforms, but the specifics and timelines may evolve as the legislative process progresses.

What This Means for Small Businesses

For small businesses, these changes represent both challenges and opportunities. The enhanced protections and rights for employees necessitate updates to HR policies and processes, potentially increasing the administrative burden. However, these changes also promote a fairer and more supportive working environment, which can only enhance employee satisfaction and retention.

To effectively manage these new HR compliance changes, SMEs should take several proactive steps. At RfM Transform, we provide cost-effective and comprehensive support to help you navigate these challenges seamlessly.

Recommendations for SMEs:

1. Review and Update Policies: Ensure all HR policies reflect the new laws, particularly those related to dismissal, flexible working, and employee leave.

2. Train Management: Educate managers on the new regulations and the importance of following fair procedures from the start of employment.

3. Plan for Compliance: Develop a compliance plan to manage the additional administrative tasks and ensure all new rights and protections are respected.

How RfM Transform Can Help

At RfM Transform, we can help you with all of this and more!

• Director-led HR Support: Ensuring compliance and streamlining HR processes from as little as £65+vat per month.

• Staff-Central People Management System: Our cloud-based app helps you manage payroll, employee records, and administrative tasks efficiently.

Ensure your business not only meets the new HR compliance requirements but also creates a positive and supportive work environment. For more detailed information and tailored solutions, get in touch RfM Transform.

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