On 17th July 2024, King Charles III delivered the longest monarch’s speech at a State Opening of Parliament in over two decades. His speech introduced 40 bills, 2 of which focus on employment law. Here’s a look at the proposed changes that are particularly important for employers.
Introduction of the Employment Rights Bill
The King’s speech confirmed that the Labour government will plan to introduce a new deal for working people to “ban exploitative practices and enhance employment rights” through a new employment rights bill. This legislation aims to create fairer work conditions and could have significant implications for employers across the UK. Key aspects of this reform include:
- Making protection from unfair dismissal available from day 1 (subject to special rules for probationary periods).
- Making sick pay available from day 1, removing the lower earnings limit and waiting period for Statutory Sick pay.
- Making flexible working the default for all workers from day one and requiring employers to accommodate this as far as is reasonable.
- Making parental leave available from day 1.
- Making it unlawful to dismiss for a woman for six months after she returns from maternity after having a baby (with certain exceptions).
- Banning exploitative zero-hour contracts, giving workers the right to a contract of employment which reflects the hours they regularly work.
- Ending ‘fire and rehire’ and ‘fire and replace’ practices by reforming the law and replacing the statutory code.
- Creating the Fair Work Agency to enforce workplace rights.
- Introducing a Fair Pay Agreement in the adult social care sector.
- Repealing the law on minimum service levels in relation to industrial action.
Introducing a right for workers/union members to access a union within workplaces and simplifying the process of statutory recognition for trade unions.
Introduction of draft Equality (Race and Disability) Bill
Alongside the Employment Rights Bill, Labour also plans a draft bill which will to “enshrine the full right to equal pay law” for disabled people and ethnic minorities. Draft legislation proposes to:
- Make employers regular pay equity audits to identify and rectify any disparities in pay between different racial groups. This involves analysing salary data and ensuring that pay practices are transparent and equitable.
- Make employers develop and implement inclusive policies that promote diversity and equality in the workplace. This includes anti-discrimination training and creating a supportive environment for all employees.
Reforms to the Apprenticeship Levy
Changes to the apprenticeship levy will encourage more businesses to invest in training and development. For HR professionals, this means:
- Maximising Benefits: Adjusting apprenticeship programmes to align with new regulations, ensuring the organisation maximises the benefits of the levy.
- Workforce Development: Developing comprehensive training programmes that support the long-term growth and development of employees, thereby enhancing overall organisational capability.
AI Regulation
The government plans to legislate requirements for those developing powerful AI models. This aims to ensure the ethical use of AI in the workplace, safeguarding jobs, and preventing misuse. Whilst this might not seem like a key consideration for employers it is worth considering the proposed changes:
- Compliance with AI Regulations: Ensure that the use of AI in recruitment, performance monitoring, and other HR processes complies with new regulations. This might include implementing new training for HR staff on AI ethics and compliance.
- Impact on Jobs: Evaluate the impact of AI on job roles within the organisation and develop strategies to support employees whose roles may be affected by automation. This could involve reskilling and upskilling initiatives.
How quickly can these changes be implemented?
Prior to becoming law there are several stages a Bill needs to go through; these are as follows:
- Introduction and First Reading: Bills are formally introduced without debate.
- Second Reading: General principles of the bill are debated.
- Committee Stage: Detailed examination and potential amendment of the bill.
- Report Stage and Third Reading: Further scrutiny and final vote in the House.
- Other House: The bill undergoes a similar process in the other House.
- Royal Assent: The bill becomes law once it receives Royal Assent.
This process can take several months to over a year, depending on the complexity and controversy surrounding the bill.
The 2024 King’s Speech outlines significant legislative changes that employers and HR professionals must monitor closely. With substantial reforms in employment rights on the horizon, we recommend subscribing to our North West HR Group mailing list to receive our quarterly updates for Employment & HR professionals.
For expert guidance and personalised assistance with your Employment and HR needs, contact Tom Evans, Head of Employment & HR, at DTM Legal by calling 0151 321 000.
For further details and to read the King’s speech in full refer to the GOV.UK website.
