The recently published Employment Rights Bill 2024 is set to bring significant changes to the UK workplace that will impact both employers and employees. It’s crucial that small business owners understand these reforms and prepare for their implementation.

The bill will bring forward 28 individual employment reforms, with the changes intended to help deliver economic security and growth to businesses, workers and communities across the UK.

Key Changes at a Glance

Day One Rights

• Unfair dismissal protection from day one of employment.
• Paternity, parental, and bereavement leave available immediately.
• Strengthened statutory sick pay with no waiting period.

Zero Hours Contracts

• Right to guaranteed hours for regular workers, following research that showed 84% of zero hours workers prefer guaranteed hours.

Flexible Working

• Default option unless proven unreasonable by employer.

Protections for New and Expectant Mothers

• Enhanced dismissal protection during pregnancy and after return to work.

What This Means for Your Business

Adapting to Day One Rights

The removal of the two-year qualifying period for unfair dismissal protection represents a significant shift. Small businesses should:

1. Review and update onboarding processes
2. Ensure clear communication of expectations from day one
3. Consider implementing a formal probation period

Practical Tip: Consult with your HR advisor to develop a robust onboarding strategy that aligns with the new legislation.

Managing Zero Hours Contracts

If your business relies on zero hours contracts, prepare for changes:

1. Audit current zero hours arrangements
2. Identify workers who may qualify for guaranteed hours
3. Plan for potential increases in fixed labour costs

Did You Know? The average zero hours contract worker in the UK works 25 hours per week.

Embracing Flexible Working

With flexible working becoming the default, small businesses should:

1. Assess which roles can accommodate flexible arrangements
2. Develop clear policies for handling flexible working requests
3. Train managers on managing remote or flexible teams

Practical Tip: Consider piloting flexible working arrangements before full implementation to identify and address any challenges.

Preparing for the Future

The Fair Work Agency

The establishment of the Fair Work Agency will consolidate enforcement of employment rights. Small businesses should:

1. Stay informed about the agency’s remit and powers
2. Ensure compliance with holiday pay regulations
3. Review sick pay policies to align with new requirements

Did You Know? The UK government estimates that 1.8 million workers do not receive the holiday pay they are entitled to.

Next Steps for Small Business Owners

1. Stay informed: Keep up to date as the bill progresses through Parliament and speak to your HR advisor to be sure of the implications for your business.
2. Conduct an internal audit: Review current practices against upcoming changes and their implications.
3. Seek expert advice: Consult with HR professionals or employment law specialists; they’ll be the experts on the changes and will be able to apply them to your business and circumstances.
4. Plan for implementation: Develop a timeline for updating policies and procedures. Don’t leave things too late!
5. Communicate with your team: Keep employees informed about upcoming changes.

As these reforms draw closer, we cannot over emphasise the importance of gaining advice from an experienced HR advisor to ensure you can minimise the problems that could arise around implementation and compliance. There is an opportunity to convert the potential challenges into growth and improved employee relations.

You can find more details about the new bill here.