Navigating Employment Law Changes: A Guide for London Employers
Employers in London are bracing themselves for a wave of new legal obligations on the horizon. The proposed Employment Rights Bill is currently making its way through the committee stage, with significant changes on the horizon that are set to reshape the employment landscape in the years to come.
Preparing for Change
Employment specialist Paula Squire, Partner at Clarke Willmott LLP, is urging employers to take a proactive approach to these impending changes. Rather than waiting for modifications to be enforced, she advises businesses to start future-proofing their employment policies now. By actively planning and ensuring well-drafted contracts, employers can position themselves for success in a constantly evolving regulatory environment.
Key Changes on the Horizon
One of the most notable changes included in the Employment Rights Bill is the introduction of day-one rights for unfair dismissal claims. The proposed Initial Period of Employment (IPE) aims to simplify dismissal procedures for issues like poor performance or misconduct. This shift could mean more employees gaining unfair dismissal rights, emphasizing the importance of getting recruitment decisions right from the start.
Impact on Fire and Rehire, Zero-Hour Contracts, and Flexible Working
The legislation also targets the controversial practice of fire and rehire, with plans to ban it in all but extreme cases. Employees on zero-hour or low-hour contracts will see changes too, with employers required to offer contracts reflecting the hours regularly worked. Additionally, flexible working is set to become the default position, with employers needing to justify any refusals.
Looking Ahead
While the Employment Rights Bill is expected to become law in 2025, most reforms won’t take effect until 2026, with unfair dismissal changes coming even later. Despite the daunting prospect of these legal obligations, Paula emphasizes that with the right tools in place, employers can streamline the process and ensure a compliant and inclusive workplace.
As we navigate these upcoming changes, it’s crucial for London employers to stay informed and proactive in adapting their policies. By taking the necessary steps now, businesses can stay ahead of the curve and ensure a smooth transition into the new era of employment law.
Remember, preparation is key when it comes to staying compliant and competitive in today’s ever-changing workplace landscape.