‘Make Work Pay’ – Labours New Deal for Working People

So, what changes are we expected to see:

October 2024

Employment (Allocation of Tips) Act

This Act comes into force 1st October and will ensure that all tips and service charges are allocated fairly between its workers (not just employees). Employers will also have to have a written policy on how it deals with tips and keep records of all tips and service charges received for three years.

On the Horizon – Dates TBC

Banning Fire and Rehire Process

This is already the subject of a draft Code of Practice that the Government plan to bring into force. Within this Code it suggests what businesses “should” do if they are contemplating dismissing and re-engaging employees on new terms and conditions. The code is likely to be much more restrictive and any employment tribunal claims are likely to be much more than the current 25% award. In the meantime, it is worth checking the content of your contracts to ensure that there are allowances for changes in hours and mobility clauses for working locations etc.

Zero-Hour Contracts

The new government no longer plans to ban zero-hour contracts. However, they plan to introduce the right to a regular contract that reflects the hours worked over a 12-week average and that notice to change a shift will be required and the cancellation of a shift will still require payment to the worker.

Removing the Age Limit for National Minimum Wage (NMW)

Labour plan to remove the current age bands in place which determines the level of NMW payable. The plan is to have one rate for all those 18 years and over.

Day One Right for Unfair Dismissal

Labour confirmed that they are proposing to give day one rights for all workers, ending the current system that leaves workers waiting up to two years to access rights of protection against unfair dismissal. Currently, there is no confirmed date for this change.

There are still questions around how it will work in practice, as well as what happens with the probation period. Such as, will it need to be a certain length, or if failing a probation period would mean the employee was exempt from the day one right.

When the changes come into force you will need to ensure your policies and procedures and compliant.

Alongside this, there is a proposal to increase the time limit for bringing a claim to an employment tribunal from 3 to 6 months.

Neonatal Leave and Pay

Expected in April 2025. The Act is for parents who have a child that requires neonatal care in the first 28 days following birth, to receive up to 12 weeks of Statutory Neonatal Pay and Leave. Payment is due to follow the same administration process as other statutory payments, such as Statutory Parental Bereavement Pay & Leave.

Parental Leave to Become a Day One Right

There is a commitment to review the current right to parental leave within Labour’s first year of Government and make this a day one right. Additionally, leave could be changed from unpaid to paid.

Bereavement Leave

Bereavement leave may become a right for all, including workers. No detail has been issued on the amount or if it will be paid or unpaid.

Changes to Flexible Working

There is a commitment for the right to work flexibly to be the default for all workers “except where this is not reasonably feasible.” It is not currently clear if the existing 8 statutory reasons for declining a flexible working request will be removed or not. It has also not been defined what is meant by ‘not reasonably feasible.’

Ethnicity and Disability Reporting

The publication of ethnicity and disability reporting will be made mandatory for employers with over 250 employees.

Redundancy Law for New and Expectant Parents

Currently, parents on maternity, adoption or shared parental leave are protected from redundancy during the period of their leave. If there is a prospect of redundancy, then a suitable alternative job must be offered. Failure to do so could be automatic unfair dismissal and discriminatory. The protection ends either at the end of their statutory maternity leave or two weeks after the end of their pregnancy where there is no statutory leave.

But under the new Act, the window of time during which a worker is exempt will be extended to safeguard pregnant employees from the time they disclose their pregnancy to their employer until 18 months after the baby is born. It will also apply to employees returning from shared parental leave or adoption leave.

Whether an employer can dismiss for poor performance and/or conduct without risk is still to be confirmed.

How Hallidays HR can help

If you don’t have a policy or need one reviewing, please get in touch to ensure you are compliant with the new legislation. If you would like to discuss any of the above in more detail, then please do not hesitate to contact us on 0161 476 8276 or email. And of course, visit the website: Hallidays HR Website and our LinkedIn page: Hallidays HR LinkedIn