What UK Small Business Owners Need to Know About the Employment Rights Overhaul

As a small business owner in the UK, it's crucial to stay informed about upcoming changes in employment law. The Labour government is planning a significant overhaul of employment rights, with legislation expected to be introduced by October 2024. Here's what you need to know:

Key Changes on the Horizon

1. Contracts Reflecting Actual Hours: You'll need to issue contracts that accurately reflect the average hours your employees work. This change aims to provide more job security, especially for those on zero-hours contracts.
2. Stricter Rules on 'Fire-and-Rehire': It will become more difficult to dismiss workers and rehire them on less favourable terms. Expect a strengthened statutory code governing this practice.
3. Day-One Rights: Employees will gain several rights from their first day of employment:
- Parental leave without a qualifying period
- Statutory Sick Pay (SSP) without a minimum earnings threshold
- Protection against unfair dismissal
4. Enhanced Maternity Protection: It will be unlawful to dismiss a woman for six months after she returns from maternity leave, except in specific circumstances.
5. Expanded Statutory Sick Pay: SSP will be available to more workers by removing the lower earnings limit and eliminating the waiting period.

What This Means for Your Business

These changes aim to enhance worker protections and job security. As a small business owner, you should:

Review and update your employment contracts
Familiarise yourself with the new day-one rights
Prepare for potential increases in sick pay and parental leave costs
Ensure your HR policies align with the new dismissal protections

While these changes may present challenges, they also offer an opportunity to foster a more secure and motivated workforce.

It's advisable to stay informed and refer to your employees' employment contracts for specific details on your obligations and their rights. If you're establishing new employment relationships or refreshing existing ones, ensure that the contracts are up-to-date and compliant with these upcoming regulations.

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