Autumn: Season of Change for Employment Law – What Changes Are on the Horizon?
Sep 16, 2024
The arrival of autumn often brings a sense of renewal, and this year, it’s no different for employment law.
The arrival of autumn often brings a sense of renewal, and this year, it’s no different for employment law.
The Labour Government has set out an ambitious agenda that will reshape the employment landscape in the UK, following the King’s Speech delivered on 17 July 2024. Two new employment bills are expected to dominate discussions and have far-reaching implications for employers: the Employment Rights Bill and the draft Equality (Race and Disability) Bill.
For employers, the announcement of these changes signals a time to reassess policies, update practices and ensure readiness for the forthcoming transformations. Below, we outline the anticipated developments and their potential impact.
The King’s Speech highlighted the Government’s focus on reforming employment practices to create a fairer and more inclusive workplace environment. In particular, two bills were announced:
These proposed legislative changes mark a significant shift in the Government’s approach to employment law. They promise stronger protections for employees and increased obligations for employers to comply with.
The Employment Rights Bill is the centrepiece of the Labour Government’s agenda for workers’ rights. It is expected to bring substantial changes that will enhance protections for workers from their first day of employment. The Government has committed to presenting the Bill to Parliament within its first 100 days. The legislative process may take longer, so employers should anticipate hearing further debate and detail throughout the autumn.
The proposed changes include:
These changes will require employers to take a proactive approach. Contracts, policies and practices will need updating once the Bill becomes law, and businesses will need to navigate the shifting employment landscape with care.
The draft Equality (Race and Disability) Bill represents a landmark step towards addressing pay inequality for ethnic minorities and disabled workers. Historically, equal pay claims have focused on gender discrimination; this Bill aims to expand those protections and make it easier for affected groups to bring claims based on race or disability.
In addition to expanding the grounds for equal pay claims, the Bill will introduce mandatory ethnicity and disability pay gap reporting for employers with more than 250 employees. This follows the trend of gender pay gap reporting and places a clear onus on larger employers to be transparent about pay disparities and take meaningful action to close them.
For employers, this means collecting and reporting data in new ways, analysing pay practices and addressing any pay gaps. Non-compliance will likely attract scrutiny, and the reputational risk for businesses that fail to act should not be underestimated.
While the Employment Rights Bill and Equality (Race and Disability) Bill are dominating headlines, other legislative changes are also set to impact employers:
As covered in a previous article, the duty of employers to prevent sexual harassment comes into force on 26 October 2024. This places a new obligation on employers to take ‘reasonable steps’ to prevent harassment, and failure to do so could result in a 25% uplift in compensation if a successful claim is made.
Employers must act now to prepare for these changes. Regular training, updated harassment policies and clear reporting mechanisms are essential to avoid breaching this new duty.
The autumn of 2024 is shaping up to be a busy period for employment law, with reforms that will reshape the relationships between employers and employees. These changes will require careful planning, as employers will need to adapt recruitment processes, update contracts and review policies to comply with their new obligations.
At Walker Foster, we understand the challenges these changes pose. Our team of experienced employment solicitors is here to support you through this period of transition. Whether you need guidance on updating policies, managing flexible working requests, or understanding your new duties, we’re ready to help.
For more information or advice on how these changes might affect your business, contact us today.
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