First published on Wednesday, September 18, 2024
Last updated on Thursday, September 19, 2024
Welcome to HR Heartbeat, where we give you a rundown of the week’s top employment law stories. Stay on the pulse of current trends impacting your business, plus get up-to-the-minute commentaries on all things HR and legal.
UK employers could retain the right to put staff on a 6-month probation despite Labour’s promise of day-one employment law rights
Labour could be compromising on one of their most controversial employment law reforms by allowing UK employers to retain their right to place new hires on a 6-month probation.
This contradicts their manifesto promise to introduce basic individual rights for all workers from day-one of employment. A source from the Financial Times confirmed two ministers leading the charge on the legislation had reached a compromise. But it’s important to note nothing will be set in stone until the government reach a decision and debut their Employment Rights Bill that is expected in the first couple of weeks of October. They have declined to comment at this stage.
Despite this U-turn on policy, employment rights will still apply earlier than the qualifying period of 2-years, presenting risks for business owners who need to dismiss employees following their probation period.
Need more support on this topic? Navigating legal change without support can be risky for your business. Learn more about our 24/7 employment law services.
Over 1 million employees have been denied paid holiday
According to new research carried out by the TUC, 1.1 million employees were refused their paid holiday entitlement last year.
1 in 25 employees didn’t get a single day’s paid holiday or the equivalent with missing weeks adding up to £2billion in lost holiday pay (£1,800 per employee).
Holiday calculations can be tough, but falling behind on your legal obligations on pay is extremely risky. Having an effective staff holiday planner and software for automatic holiday calculations can help you keep up to date on all staff allowances whether full-time, part-time, or variable.
As part of their Employment Rights Bill, Labour has pledged to crack down on bad employment practices like failing to pay the minimum wage and not allowing employees to take their full holiday entitlements. This means it’s now more important than ever to seek employment law support to make sure you’re getting rules on employee pay and workers’ rights correct.
UK employers concerned about rising employment law costs under Labour
According to research by CBI/Pertemps, only 26% of employers are positive they can absorb the expected employment law costs from Labour’s worker reforms without impacting growth, jobs, or employee benefits.
BrightHR recently surveyed 150+ business owners about how prepared they felt to implement Labour’s changes. Out of the business owners we surveyed, 42% said their top concern was the time it will take to implement the changes. But this was closely followed by concern for costs associated with the changes (40%), and the monetary risk to their business if changes weren’t introduced correctly (24%).
The incoming legislative changes from the new Labour government will significantly impact business owners. With numerous changes on the horizon, it is crucial for businesses to prepare accordingly. Stay ahead of big changes to employee pay and workers’ rights, with FREE insights from BrightHR’s latest survey.
Under 2-weeks till new tips law
From 1 October 2024, employers are required to fairly allocate ‘qualifying tips’ to workers in accordance with the Employment (Allocation) of Tips Act 2023 and follow the statutory Code of Practice.
If you work in a business that takes tips it’s essential you know what a “qualifying tip” is, whether a tipping policy is required for your business, and how you can allocate and distribute tips fairly.
Employers will have to have a written policy which sets out how qualifying tips are dealt with and maintain a tipping record, unless they receive tips only on an occasional and exceptional basis.
Workers will have the right to make a written request to view the tipping record of their employer for a period of up to 3 years, provided they worked for the employer for the full duration of the requested period.
For instant advice on this topic ask Brainbox: When the new law on tips is introduced, can I make any deductions when paying tips to employees?
Need more support? BrightBase has 300+ policies, documents, and templates to support your including a Fair Allocation of Tips Policy and a Tips Policy Exemption Statement. Discover expert policy support.
Work hard, sleep harder - law firms urged to track employees’ sleeping patterns
The Mindful Business Charter (MBC), a mental health charity established to reduce unnecessary stress for staff has urged firms to check how much sleep lawyers at risk of overworking are getting.
In the past couple of years especially, the legal profession has faced a severe problem with stress and burnout owing to heavy caseloads, long hours, and the pressures of the industry.
While tracking sleep might seem a little invasive, the organisation also suggested the law firms used a time-keeping system to alert managers and employers when employees were working long hours to crack down on overworking.
Need more in-depth wellbeing and mental health support for your staff? Discover the benefits of offering your staff round-the-clock mental health support through an Employee Assistance Programme (EAP) like Bright Wellbeing & Counselling.
And that’s a wrap. Tune in next week for more headlines and make sure you stay ahead of major employment law changes!
