Navigating change: The key employment law changes HR needs to know

Following the most recent general election comes a change in Government, and with it, a whole host of employment law changes HR must follow. To help you stay up to date with the latest changes to employment law in 2024, Talos360 will summarise the most important proposals to keep your eye on.

With the shifts in HR and employment law set to come into force from October 2024 we wanted to explore the upcoming employment law changes presented in Labour’s plan to make work pay so you have a clear understanding of what’s to come and how you can prepare as a business.

Labour’s Employment Rights Bill 

Prior to Labour’s victory, changes to employment rights in the form of a new Employment Rights Bill were a key part of Labour’s manifesto. Now, following the King’s Speech, we have some clarity on the proposed employment law changes.

As with any new legislation, the Employment Rights Bill will be subject to parliamentary approval, yet with Labour holding a majority share of seats, it’s safe to say that HR can expect some employment law changes coming sooner rather than later.

Employment law changes in 2024

There are several changes to employment law that will dramatically alter how we recruit here in the UK. Whilst Labour promised to deliver new HR and employment laws in the first 100 days of their victory, we won’t likely see any real changes until April 2025.

But that doesn’t mean we should sit back and do nothing. Below, we have summarised some of the most important changes to employment law in 2024 and what you can do to stay ahead of the curve.

Zero hour contracts 

The first of the upcoming employment law changes proposed in the King’s Speech is banning abusive zero-hour contracts. Labour has laid out a law to ensure workers have a right to a contract that reflects the number of hours they regularly work. 

While zero-hour contracts are an ideal solution for employment agencies, the idea behind the law change is to end the one-sided flexibility abused by some businesses offering zero-hour contracts. 

It’s important to note that this new law won’t end all zero-hour contracts, but it will cause a considerable shift in the way some businesses operate. For the 3.1% of UK workers on zero-hour contracts, this will provide the right to regular hours and notice of changes in working patterns, bringing balance between employer and employee. 

Is this change to zero-hour contracts a cause for concern? If you are currently exploiting zero-hour contracts then yes, this is certainly a cause for concern, but for the majority of employers, it will just mean a closer inspection of the latest employment law when placing workers on zero-hour contracts.

Fire and rehire 

Following a new Government is an updated code of practice on dismissal and re-engagement. The purpose of said code is to ensure an employer takes all the necessary steps to explore alternatives to dismissal and engages in meaningful consultation with employees to reach an agreed-upon outcome. 

‘Fire and Rehire’ is the process of firing and rehiring staff on new, less favourable terms, which employers can abuse. It is typically a last resort option, but employers use this initiative to reduce salaries, minimise redundancies, and reduce employees’ working hours.

Following the upcoming employment law changes, employers must be careful when considering changing staff and making redundancies. 

Where it is impossible to avoid the fire and rehire practice, decision-makers will have to check existing codes of practice and ensure they are operating within the new HR and employment law. 

Parental leave 

A small but important change outlined in Labour’s employment law proposals is the update to parental leave. Often mistaken for maternity leave, parental leave is unpaid leave taken by new parents to care for children and support partners. 

Currently, those wishing to take parental leave must have at least one year of service under their belt. But no more. The new Government has proposed that the ability to take parental leave will become a day one right.

Ahead of the change, employers must look at their current parental leave policy and update it where necessary to comply with employment law changes before they come into force. 

Statutory sick pay from day one

Statutory sick pay is another area that is set to face some major alterations following the latest change to employment law. Currently, statutory sick pay is a cost for employers, yet it acts as a state benefit for employees. 

The King’s Speech made clear that Labour wants to reform the rules and provide statutory sick pay as a day one right. But that’s not all. Following the new employment law changes, employers must provide sick pay from day one of absence instead of the current day four.

Following approval from parliament, statutory sick pay will be available to all employees, including agency workers and those on worker contracts.

As good as day one sick pay sounds, it does raise some questions about how upcoming changes to employment law will work. For example, will those on contracts earning less than the statutory sick pay of £116 per week receive the full amount, or will it be altered? For employers, this is certainly one to keep an eye on… 

Working right from day one 

When Labour announced the upcoming employment law changes, this was the one that really caught the attention of HR teams. While we don’t have all the answers right now, the King’s Speech gave us one or two things to think about. 

Labour is set to make a historic change to employment law, introducing employees’ right to claim unfair dismissal from day one. The change will bring heightened job security for employees but will also put more pressure on HR and internal recruitment teams to get their hires right the first time.

With all workers able to claim unfair dismissal, recruiters must ensure the people they bring in are suitable for the role. With this change on the horizon, businesses are already looking for alternative ways to hire, with many considering skills-based hiring. 

By leveraging candidate assessments, employers can make a more data-driven hiring decision, hiring candidates that meet the role’s requirements. If you are looking to steal a march on the upcoming changes to employment law, this is definitely one to consider. 

Flexible working from day one

While 94% of UK employers currently offer some form of flexible working, the popular benefit is not available to all workers. That is something Labour look to change in their next batch of employment law changes. 

Labour has promised that employees will have the right to request flexible working from day one. Following this change, employers will find it harder to resist flexible working requests and must accommodate reasonable, flexible working options if required.

If your business doesn’t currently offer flexible working, it’s a good idea to put flexible working rules in place. Not only will this put you in good stead once the employment law changes are in place, but offering flexible working can help you attract top talent in your industry. 

While this proposed legislation may change, this is still one to watch.

Protection for new mothers 

The last big HR and employment law change we want to talk about is the new proposed protection for new mothers. We understand that the new change to employment law will make it unlawful to dismiss a woman within six months of her return to work following maternity leave. 

Many think this law is already in place, but the current protection for mothers is slightly different. The current protective period ensures that a woman is protected against redundancy while pregnant and is entitled to be offered another role if there is a suitable role available. 

Labour’s employment law changes will ensure that mothers will be protected against redundancy for six months after returning to work. For employers, expect to adopt a new process for returning new mothers to ensure you remain in the law now and in the future. 

Consequences of breaching employment law

Failing to comply with the new employment law changes can result in many issues for businesses. Depending on the breach of legislation, employers can expect to face anything from employee tribunals to expensive fines and fees. Here is what you can expect if you breach the Labour employment law proposals:

• Employee tribunals 
• Court hearings 
• Damaged employer brand
• Lowered stakeholder trust 
• Expensive legal fees 
• Fines and employee compensation