The first 100 days

The first 100 days – What’s changing?

Well quite simply, not much YET, as most of the promised changes look to be running a little late, and to be fair, they are quite complex in some cases! What follows is a quick rundown of what’s still expected... But possibly outside of the 100-day promise!

Labour waltzed into power on the 4th of July, and here we are on the 28th of August, with their first 100 days nearly up. As promised, they hit the ground running—more like sprinting—and have already started rolling out changes to employment law that have SME owners across the country nervously clutching their balance sheets. Whilst some of the promises have been slowed, a few are either nearly in place or well underway!

If you’re feeling like you've just been dropped into the deep end of a pool full of legal jargon, don't worry—I’m here to help you stay afloat, with a dash of humour to keep things light.

The New Normal

Labour’s been clear about their mission: to tip the scales in favour of employees, ensuring more rights and protections while expecting employers to be a bit more, shall we say, “mindful” of their practices. They’ve wasted no time making good on these promises, and the impact on SMEs is starting to be felt.

“Fire and Rehire”

One of the first things Labour did was shake up/ban “fire and rehire” practices. If you were planning to give your workforce a not-so-subtle nudge by terminating their contracts and offering them new ones with less favourable terms, you’re out of luck. That strategy is now illegal. Imagine telling your staff, “You’re fired, but I’ll rehire you if you agree to a pay cut and extra hours.” Whilst not quite that simple… The not so great practice is no more. It’s now about negotiating in good faith or not at all.

The ￡15 Minimum Wage

The much-discussed ￡15 minimum wage is now on its way to becoming a reality. For SME owners, this might have felt like a punch to the gut. “￡15 an hour?” you might think, “I’m going to need to sell a lot more widgets to cover that!” While it’s a win for workers facing the cost of living crisis, it means you’ll have to rethink your budget, possibly raise prices, or find other ways to trim overheads and to maintain profitability. Higher wages could boost employee morale, but they also squeeze profit margins, so it’s a balancing act.

Zero-Hours Contracts Tamed

Labour has put its foot down on zero-hours contracts, ensuring they’re only used when absolutely necessary. Gone are the days when you could rely on a flexible workforce that you called in as needed. Now, you’ll need to provide more security to your employees, which might mean committing to more hours or hiring additional staff. If your business thrives on flexibility, this change could mean a significant shift in how you operate. But hey, at least your employees will know if they can afford to buy that round at the pub, on the next team night out.

Empowered Trade Unions

Labour’s already made moves to strengthen trade unions, making it easier for them to recruit and represent workers. This could lead to a rise in union activity, even in sectors that haven’t seen much of it before. For SME owners, this could mean navigating more collective bargaining and potentially facing higher wage demands. However, unions could also bring stability and a clearer framework for negotiations, which might make those annual pay reviews a bit less stressful.

Flexible Working for All

One of the more popular changes Labour’s introduced is the right to request flexible working from day one. If your employees fancy working from home or want a four-day week, they can now ask for it without needing to jump through hoops. You’ll need a solid reason to turn them down. For many SMEs, this has meant rethinking how to manage teams, especially if your business relies on in-person collaboration.

What Does This Mean for Your Business?

With Labour’s changes already in motion, but most not quite law yet, the landscape for SME owners is shifting rapidly. These new laws are designed to create a fairer workplace, but they also bring new challenges. It’s a time of adaptation, as you’ll need to stay ahead of the curve, reconsider your business strategies, and maybe even find a few new tricks to keep everything running smoothly.

I guess the bigger question is, what's next? - Feel free to leave a comment and share this if you liked it!