Changes with New Labour

As ever FashionCapital, and sister company Fashion-Enter Ltd, are trying to keep designers up to speed on the latest changes that may affect their business. Today, we are looking at labour and contracts of employment.

Thanks to our legal partners Aria Grace headed by the most wonderful solicitor for fashion Nick Gould we believe that there is talk of “in the next 100 days” and below is a summary of what may be changing in the world of employment, sick pay and contracts. Hold on to your hats! This is a lot of change and it’s coming quickly.  

Day 1 Unfair Dismissal Rights 

Employees currently need 2 years to bring an ordinary unfair dismissal claim. If this is changed to a day 1 right, every employee, whether employed for a day or a month will be entitled to bring an unfair dismissal claim. More than ever you will need robust recruitment policies, crystal clear probationary periods and manager training to minimise the risk of claims.

Extended pay gap reporting to include ethnicity and disability reporting

This is an opportunity for a pay gap review before the obligation kicks in, allowing you to right size any results which may need to be dealt with.

Ending zero hours contracts

In the event that you use zero hours contracts you may want to consider how and when to bring these to a close, potentially on a staggered basis to avoid +20 terminations of zero hours employees which would trigger collective redundancy consultation obligations and claims for Protective Awards in the event collective consultation is not undertaken.

Increasing collective consultation redundancy obligations

Currently you can count employee numbers for collective redundancy purposes based on each place of work, this may change to employee numbers across the company as a whole, potentially dramatically increasing your collective consultation obligations.

Flexible working from day one as a default position

Employers will need to ensure that any steps taken to prevent flexible working can robustly be justified.

Trade Union Rights

It is expected that the Labour Government will seek to increase Trade Union membership with a suggestion that all employers will be required to inform employees of their right to join a Union and for increased Union participation in the workplace.

Increased sick pay

No longer 3 unpaid “waiting days” but Statutory Sick Pay from day one of sickness. Employers should be looking at, as a minimum, how sick leave is reported and what steps it can introduce to ensure medical reporting and / or reduction in generous enhanced sick pay.

Dual Discrimination Protection

Whilst employees can of course already bring discrimination claims for two or more protected characteristics, this proposed enhanced protection is a concern as it suggests a more stringent approach with possibly increased compensation if the employee succeeds with regard to two or more protected characteristics.

At the moment these points are being considered and updated and these are just suggestions but one thing is for sure. Change is on its way and you will need to be ready to change your contracts of employment.