Kate: 0:31

Welcome back to Buzzing About HR. If you're here, you probably already know that employment law is never boring, boy, have I got some stories, but let's be honest, it can be a bit of a headache, lucky for you. That's where I come in. I'm Kate HR expert, employment law geek. I love a good case and your go-to person for making sense of all this chaos, so you don't have to Now.

Kate: 1:00

Today's episode is a big one. We're diving into the Employment Rights Bill. What's changing, what's been scrapped and what all this actually means for you as a small business owner. This bill has been through more changes than a performance review gone wrong. Some updates are long overdue, some are causing a few raised eyebrows and some, well, they've mysteriously disappeared, like a lost HR file when you're facing an audit. Oh and, before we get into it, quick heads up. A brand new neonatal leave policy is coming to effect on the 6th of April 2025. This is huge change for parents with babies in neonatal care and if you're an employer, you need to get your policy sorted. But don't worry, we'll be covering this properly next week. So hit subscribe so you don't miss it. Right, grab a coffee, tea or something stronger no judgment here and let's get into it.

Kate: 2:03

So, first off, unfair dismissal the day one drama. What's currently happening? So right now, employees need two years of service before they can claim unfair dismissal. There's no official legal framework for probation periods and employers pretty much set their own rules. This means that if you're let go before you hit the two year mark, you're pretty much out of luck, unless the dismissal is discriminatory, linked to whistleblowing or falls under an automatically unfair reason like raising health and safety concerns. Let's be real, this has always been a bit of a grey area, especially when it comes to probation periods. Some companies handle them properly, while others well, let's just say they make it up as they go along.

Kate: 2:57

So what's been proposed? Employees would get a day one right to claim unfair dismissal. Employers would still be able to dismiss easily in the first nine months, but they need to follow a basic fair process. So the goal here was to give employees more protection from the get-go while still giving employers a way to let someone go if they weren't the right fit. The light touch process meant that employers wouldn't have to jump through so many hoops to dismiss someone in their first nine months, as long as they did it properly. So what's proposed to be changed. The easier dismissal process won't apply to redundancies, so you can't just call something a restructure and sidestepped fair dismissal rules. Employees can request written reasons for dismissal even if they've only been a short time. This means that while businesses still have flexibility when it comes to probation periods, they'll need to be a bit more careful, especially with how they dismiss employees. And let's be honest, having to explain why someone's being let go might make some managers think twice before hitting the eject button too quickly. So when might this happen? Consultations are continuing in 2025 and we think it's likely to come into force in autumn 2026. So no immediate panic, but definitely something to keep an eye on. If you're hiring, now's the time to start tidying up your probation processes.

Kate: 4:40

Fire and rehire almost gone, so where are we now? Fire and rehire is technically legal, but very risky. It's been getting a lot of negative press. We've seen some companies use fire and rehire as a way to force new contracts on employees and it's landed some big names in hot water. It's legal, but it comes with a huge reputational risk, especially when employees fight back. So what's been proposed? Making it automatically unfair to dismiss someone for not accepting a new contract term, not only in cases of genuine financial distress, and even then, employers would need to follow a proper process. This was meant to put an end to companies strong-arming employees into accepting worse terms unless the business could prove it was absolutely necessary.

Kate: 5:36

So what's being changed? The government scrapped interim relief, meaning employees won't get paid whilst waiting for their cases to be heard, but they doubled the protective award. Now businesses could be fined up to 180 days pay for getting it wrong. This is a big deal. If you're considering contract changes, you'll need to be crystal clear on your reasons or it could cost you a lot more. When's this happening? Again, consultation in 2025, likely to come into force in 2026.

Kate: 6:13

If your business is thinking about restructuring, get advice now, because fire and rehire is about to become a legal minefield Redundancy rules, more red tape or just more headaches. So what's happening now? Right now, if you're making 20 or more redundancies at a single site, you're legally required to go through a formal consultation process. This means collective consultation, notifying the government if it's 20 plus in 90 days, and making sure employees know their rights. If you skip this process, not good Employees can take you to tribunal and if they win, you could be on the hook for a protective award, which could mean up to 90 days pay per affected employee. So yeah, it's something you don't want to mess up. So what's being proposed? The 20 person threshold would no longer be just per location, it would apply across all sites. The protective award aka the fine for not consulting properly would increase from 90 to 180 days pay. So, in simple terms, if a company has multiple locations and they're making a total of 20 plus people redundant, they'll still have to consult, even if those redundancies are spread across different sites.

Kate: 7:40

The goal To stop businesses from avoiding collective consultation by making smaller cuts in multiple locations. But for employers this means more admin, more hoops to jump through and a bigger risk if they get it wrong. So what's changing? Well, this part is still up in the air. Instead of automatically applying the 20-person rule across all sites, the government is now reconsidering how this threshold should work. They're looking at whether it should be based on a percentage of total employees rather than a fixed number. What does that mean in real terms? More waiting, more uncertainty and more. Let's see what happens. When is it going to happen? Right now, no firm date, but expectation is that changes will come in 2026. More consultations are set for late 2025, so businesses will have some time to prepare or panic. If your business is planning restructures, it's worth keeping an eye on this, because redundancy rules could be changing drastically.

Kate: 8:41

Zero hours contracts and predictability no more on-call chaos. So where are we now? At the moment, zero hours contracts are a bit of a wild west situation. Employers don't have to guarantee any hours and workers are often left hoping for the best, waiting for their phones, wondering if they're actually going to get any work this week. For businesses, it's a flexible dream you can call people in when you need them and not pay them when you don't. But for workers, it can be unpredictable, stressful and financially unstable. And let's be honest, trying to get a mortgage or even plan your grocery shop on a zero hours contract is a nightmare.

Kate: 9:25

So what's been proposed? If a worker has regular hours for 12 weeks, the employer must offer them a guaranteed contract that reflects their typical working hours. This was meant to stop the misuse of zero hours contracts and give workers some stability. The logic If someone is consistently working, they should have a contract that actually reflects that, instead of being stuck in limbo unsure of whether they'll have work next week. So what are the changes proposed? Agency workers are now looking to be included, so if you're hiring through an agency, you can't dodge responsibility. The end hirer will now be on the hook for offering guaranteed hours too. They're still debating what actually counts as low hours, so if someone works a few hours here and there, it's unclear whether they qualify. There may be exceptions, for example, in industries where work is seasonal or naturally inconsistent, but nothing's been confirmed yet. So the basic idea is still the same, but some of the details are still being ironed out. When's this likely to happen? Most likely 2026.

Kate: 10:36

For now, zero hours contracts aren't disappearing, but businesses that rely on regularly using flexible workers without any commitment are going to have to start planning ahead. If you've been leaning on zero hour staff, this is one to watch closely. Write to notice for shift changes. No more surprise you're not working today. What's happening now? Right now, employers can change or cancel shifts at the last minute without any consequences. This means a worker could turn up for a shift only to be sent home unpaid or find out the night before their early morning shift has been scrapped. And, let's be honest, that's a nightmare for anyone trying to plan childcare, pay bills or just have a life outside of work. It's particularly tough for hospitality, retail and healthcare workers, where shifts can be unpredictable. For employers, this flexibility is great, but for employees not so much.

Kate: 11:38

So what was proposed? Employers must give reasonable notices of shifts. If a shift is cancelled at short notice, the worker must be compensated. The goal To stop last minute changes from messing with people's lives If you're going to cancel or change a shift, you need to give proper notice or pay up if you don't. What's been proposed again? Agency workers are now included, so both the agency and the end hirer must follow these rules. This means agencies can't just blame the employer and employers can't pass the buck back to the agency. Everyone has to take responsibility. This is a big deal for agency workers, who often get treated as second class employees when it comes to shift scheduling. When's this likely to happen? Consultations in 2025 are still continuing. Likely to come into force in 2026.

Kate: 12:37

For businesses that rely on flexible shift workers, now's the time to start planning, because soon, last-minute cancellations could come with a cost Holiday pay and pay transparency. Time to get your records in order. What's changing? Employers will now have the right to keep six years worth of holiday pay records and if they don't, it could be a criminal offence. That's right. Even if you've been a bit casual about tracking holiday pay, now's the time to get serious. This change is designed to protect workers from being underpaid and make sure businesses aren't cutting corners when it comes to holiday entitlements. For HR teams, this means more admin, more record keeping and potentially more headaches. This means more admin, more record keeping and potentially more headaches, especially if your business has seasonal workers, casual contracts or complicated pay structures. If you don't already have a good system in place, now's the time to sort it out. When's this going to happen? Expected in 2026. If you've been managing holiday pay manually, this is your wake-up call to start automating and tracking everything properly before the law does it for you.

Kate: 13:56

Employment tribunal time limits extended. Right now, most employment tribunal claims have to be filed within three months, but that's about to double to six months if the legislation gets through. For employees, this means more time to gather evidence, get advice and decide whether to take legal action. For employers, it means that issues that you thought were long gone could come back to haunt you six months down the line. It's great news for employees, who need time to process what's happened, especially in cases of discrimination, harassment or unfair dismissal, where people might not be ready to take action straight away. For employers, it means keeping records longer, making sure decisions are well documented and being prepared for legal claims much further down the line. So if you've been cutting corners on documentation or hoping grievances will just go away after three months, think again, because soon employers will have twice as long to take you to tribunal if the the Fair Work Agency, hr's new best frenemy.

Kate: 15:17

So what's new? A brand new government body is being set up to crack down on dodgy employment practices, and it's going to have teeth. The Fair Work Agency will be responsible for enforcing holiday pay, sick pay and minimum wage compliance. But that's not all. It will also have the power to bring claims on behalf of employees. So if an employee isn't getting what they're owed, they won't need to take their employer to tribunal themselves. The government could do it for them. That means businesses can't just rely on employees being too busy, stressed or under-resourced to take action, because the Fair Work Agency will be actively looking for breaches.

Kate: 16:02

When could this happen? It's already starting in 2025, and they anticipate that it should be up and running by 2026, when the bill passes. For employers, this means no more flying under the radar. If you're not following employment law properly, the government will find out. Now's the time to get everything in order before they come knocking. So out of all of this, what's been left out and what promises have disappeared? Not everything that was hyped up in the Employment's Right Bill has actually made it through. Some of the big ticket promises have been quietly dropped, some have been pushed into other legislation and some have been sent to the we'll think about it later pile, which, let's be honest, means never. Here's what isn't happening yet.

Kate: 16:57

Menopause action plans Originally, there was a call to make it legal requirement for large employers to introduce formal menopause policies. Instead, it's now just recommended good practice with lovely air quotes, which means employers can do it, but there's no obligation. Air quotes, which means employers can do it, but there's no obligation. Ethnicity and disability pay gap reporting At one point there was a push to make reporting on ethnic and disability pay gaps mandatory, just like gender pay gap reporting, but instead of being including here, it's been moved to the upcoming equality, race and Disability Bill, which means it could still happen, but not anytime soon. Ban on unpaid internships this one had a lot of public support, which caused to outlaw unpaid internships that exploit young workers. But instead of an actual ban, all we're getting is a call for evidence, which, in government terms, means we'll think about it, maybe at some point.

Kate: 18:05

The right to switch off One of the biggest letdowns. There was a proposal for a code of practice that would have encouraged employers to set boundaries around work communications outside of working hours. It wouldn't have been a full-on legal right to ignore your boss's emails at 10pm, but it would have given employees more protection against burnout. However, this is now vanished from the agenda and it looks like the government isn't moving forward with it at all. Instead of strong legal protections, most of these issues have been pushed aside, delayed or downgraded to guidance. In other words, if you are hoping for big changes in these areas, you might be waiting a long time. Most of these reforms have been shelved for now. Some might reappear in future legislation, but there is no clear timeline. So if you're expecting major progress on work-life balance, pay gap transparency or workplace equality, it looks like it's still business as usual, at least for now, and some still need further consultation. That means if you start making small, manageable updates now, you'll be in great shape when the laws actually kick in. So, instead of waiting until you're scrambling at the last minute, here's a practical action plan to help you get ahead of the game.

Kate: 19:36

Firstly, review your contracts and policies. Some of these changes, like the new fire and rehire restrictions and day one unfair dismissal rights, might mean you need to tweak your policies and employment contracts. Now's the perfect time to check your probationary period policies. Do they align with upcoming unfair dismissal rules? Do you actually have one? If not, you might want to put one in place. Review your redundancy procedures, especially if you operate across multiple locations, and look at shift changes and zero-hour contracts. Are you relying on last-minute changes and start thinking about how to adjust Spoiler alert. I will be doing a podcast on this.

Kate: 20:22

Secondly, keep your record keeping in order. With the new legal requirements on holiday pay records for six years, plus a big crackdown on wage compliance, good record keeping it's about to become more important than ever. Audit your payroll and holiday pay records. Make sure everything is properly documented and trackable. And don't forget I'm your happy go-to geek. So if you need any support with regards to systems that can help you do this, I've got a few up my sleeve with regards to systems that can help you do this. I've got a few up my sleeve. Ensure you have clear documentation for dismissals, redundancies and shift changes, especially with tribunal time limits being extended. Thirdly, keep an eye on consultational timelines. A lot of these changes are still in progress, with consultations running throughout 2025. This means some of the finer details, like the threshold for collective redundancies, could still change. Stay ahead by keeping up with updates from the government, acas and employment law experts getting involved in consultations if your industry has a voice, and don't wait for the law to change without your input. Oh, and don't forget to subscribe to this podcast, because I'll be keeping you up to date as we go.

Kate: 21:45

Fourthly, think about employee communications. Employees will hear about these changes too, and the last thing you want is a wave of unnecessary panic. Instead of waiting for a flood of emails and worried questions, be proactive. Train your managers so they understand what's changing and how to communicate it clearly and keep employees informed through updated policies, staff briefings or even a simple Q&A session. And, lastly, don't wait for the Fair Work Agency to come knocking. The Fair Work Agency is being set up to enforce employment rights and it's got some serious powers.

Kate: 22:28

If you've been thinking we'll fix that later, now is the time to get everything in order. Now is the time to get everything in order. Make sure you're fully compliant with holiday pay, sick pay and wage laws before they start investigating. Address any grey areas in your employment practices now, because soon someone else might be looking into them for you. The bottom line stay ahead of the curve.

Kate: 22:56

Here's the thing the best way to handle these changes is to get ahead of them now. If you start preparing bit by bit, you'll be in a great position when these laws actually come into force, while other businesses are scrambling to catch up. And remember, you don't have to figure this out on your own. If you need help navigating these changes, updating your policies or just making sure you're compliant, now's the time to speak to an HR expert and yes, that does mean me. That's it for today. If you found this episode helpful, hit, subscribe, share it with a colleague and let me know your thoughts. And don't forget next week we're talking neonatal leave, which comes into effect on the 6th of April 2025. It's a huge change for working parents, so make sure you tune in. Thanks for listening and see you next time.