Home › blog › 2024 › September › 17th › a summer of change
A summer of change
17th of September 2024 Article by Lynn Webster
Lynn Webster looks at the impact on the industry of the new government in the UK.
As the dust settles following the summer general election and a new government in the UK, we are now beginning to see some of the inevitable changes, the priorities and thought processes of the leading party. Whilst remaining apolitical on viewing these changes there are certainly going to be some major impacts on companies in the cleaning industry.
In his speech to Parliament, the King said: “My government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights”
Potentially significant are the changes in power and control between employers and their employees. These are expected to be presented as The New Deal package of employment reform by mid-October. Over recent decades employers have had a number of legislative ‘benefits’ which could be removed.
This will include significant change in the grace period when recruiting new employees without facing unfair dismissal claims. This has previously been six months, one year and since 2012 two years - that will now revert to ‘from the first day of employment’. It is likely to be a major concern to employers and their HR advisors.
It may include onerous time spent in consultation processes; formal performance reviews which will occur from the first day in a job; increase in operational management time; consuming paperwork; the need for greater HR expertise; and potential legal costs when new cases are taken to tribunal hearings.
There are also changes in removal of zero hour contracts; increases in administration time to manage rights for various benefits such as sick pay; maternity and paternity pay; and flexible working being accommodated by employers. All from day one.
There are of course the values to employees which are not in dispute - especially the social aspects that reduce the risks of employees being dismissed without fair cause. And there will be improved workplace standards for many, but perhaps at a cost that many smaller businesses can ill afford. HR expertise and the management of staff can be a significant weakness in SME’s.
This could mean employers are less likely to take on those workers who take longer to become productive if there is less flexibility in having to retain the less suitable or able candidates. This in turn may mean reduced opportunities for job seekers when employers won’t take risks on a new employee or give them a chance to prove themselves.
After all, who is truly able to assess the full capability, competence, attitude and behaviours of new recruits on day one? It may alter the way companies recruit - make them less likely to give someone a chance. Where there are doubts about suitability, some won’t be employed in future.
The government has promised to consult and canvass views. “It is crucial we get the balance right,” the Department for Business and Trade has said, “… we will consult fully with business.”
There’s no doubt - this could be the biggest change in UK Employment Law in over 20 years.
RSS