A look at forthcoming changes to UK employment law

By Alistair September 25, 2024 07:21

Major changes to UK employment law are set to be announced by the new government. Here, Carolyne Wahlen from Golf HR outlines what to expect.

We now have a new government in power and parliament is back after the summer holidays. During the campaign, changes to employment law were highlighted by the new government as a key priority. These proposed changes aim to address issues such as workers’ rights, job security and fair pay, and they are expected to have profound effects on both employees and employers across the nation.

The changes should be announced in the first 100 days, by the end of October, but it is highly unlikely, although not impossible, that they will come into effect in that time.

Let’s start with the changes that are confirmed

‘Fire and rehire’ is now subject to a 25 percent uplift if the court finds you guilty of this practice. This came into effect on July 18, 2024. This is unlikely to affect golf clubs directly.

The Strikes Act 2023 will be repealed, with the formal wording included in the Employment Rights Bill which will be announced in October this year. Again, unlikely to directly affect golf clubs.
The ones that will affect golf clubs

People will be allowed to ask for predictable working patterns

This already has Royal Assent, so is only one step away from being put into practice. This right applies to zero hours workers or others that have irregular hours / patterns of work. The act carries a minimum service requirement of 26 weeks and from that point, qualifying workers will be able to make two requests every 12 months for a predictable working pattern. This request would need to be treated seriously, and would mean that effectively a part-time contract, with set hours / days could be requested. Rejecting the request could lead to a potential claim of discrimination.

Fair allocation of tips

From October 1 the statutory code for the fair allocation of tips (cash or card) will come into force. The code states that tips should be paid to all workers in full, before the end of the month following the payment being made. No deductions for card fees or overheads (only PAYE is allowed). No putting it all in a pot and sharing it out between all staff. Tips do not count towards minimum wage, they will be additional.

To comply with the law, employers must produce a written policy on tip allocation (in situations where tips are paid on more than an occasional basis) and maintain records of tip allocations for three years.

You should note that tribunals will have the power to award compensation of £5,000 from day one of the act coming into force.

Prevention of sexual harassment at work

This was confirmed by the previous government and comes into force on October 26. The Worker Protection (Amendment of Equality Act 2010) Act 2023 will require employers to take reasonable measures to prevent the sexual harassment of their employees (see the article on this published in the July 2024 issue).

Not confirmed yet

The biggest potential change is the removal of the employer’s ability to fire staff if they have less than two years’ service. Under two years you can currently just say that it is not working out, pay their notice and that is it.

The government wants to remove that loophole so that employees are protected from day one. Which means that to part company you would have to either follow the full disciplinary process, or go through a redundancy process, or give them a settlement agreement, just as you currently have to with staff over two years’ notice. There is talk of a probationary / trial period exception, so that in the first six months you can fire and not follow the full process, but that is not guaranteed.

This means that clubs will need to put a lot more time and analysis into their recruitment processes, as once you have hired someone, it is going to be more difficult to fire them. And you will need to have a rigorous performance management process in the first six months, that regularly reviews and documents new staff’s performance, so that you have a chance to part company. No more saying after 12 months ‘they have always been bad, can we just fire them now?’.

The government has also proposed a significant increase in the minimum wage, aiming to align it more closely with the living wage. This move is designed to ensure that all workers, no matter what age, can afford a decent standard of living, reducing poverty and inequality.

This is likely to come into effect next April with the regular minimum wage changes.

The government has also prioritised improving work-life balance for employees. Proposals include a range of day one measures, that staff have a right to from their first day of working, not only after the first six or 12 months of service. Suggestions are to support flexible working arrangements, bereavement leave, statutory sick pay, parental leave and protections against excessive working hours (the right to disconnect).

Particularly with flexible working, the rules will change so that the request will be approved by default, and then the employer has to prove that the request will not work. The existing eight reasons for rejecting a request are unlikely to remain. By promoting a healthier work-life balance, the government aims to improve overall well-being and productivity among workers.

One of the cornerstones of the government’s proposed changes are measures to prohibit exploitative zero hours contracts, and the gig economy workers, who often face precarious working conditions and lack of basic employment benefits. The new legislation aims to classify gig economy workers as employees rather than independent contractors, thus granting them rights to minimum wage, holiday pay and sick leave. For clubs this means that you can no longer have a self-employed house manager (yes, it does happen); they will have to be employees.

The proposed employment law changes by the new government represent a bold and ambitious effort to reshape the work market. While these changes aim to enhance workers’ rights, fair pay, job security and work-life balance, they also present big challenges for golf clubs in terms of increased costs and administrative responsibilities. However, the long-term benefits of a more motivated, secure and productive workforce could outweigh the initial difficulties.

As these proposals move through the legislative process, it will be crucial for employers to stay informed and engaged with the changes. Make sure that you have expert HR advice, and do not rely on a member doing the work for the club in their spare time! Email cw@golfhr.co.uk for more information