The new UK government HR shake-up: what you need to know now

Change is in the air... in the lead up to the election, the Labour Party proposed extensive reforms to UK employment law as part of “Labour’s Plan to Make Work Pay: Delivering A New Deal for Working People” (the “New Deal”).

There are some big reforms in here that prioritise employee rights and will no doubt have an impact on HR leaders including:?

1. Day-one unfair dismissal protection
2. Priority on work-life balance and flexible working
3. Expanded pay gap reporting (gender, ethnicity, disability)
4. Enhanced family leave policies
5. Simplified worker status classification

For those of you in the UK, here are some of the trends I think we should be prepared for:

Rising costs of staff turnover

The combination of day-one rights and enhanced employee protections means that staff turnover is likely to become more costly;?

• Recruitment processes may need to be more rigorous, taking more time and resources
• The risk of unfair dismissal claims increases, potentially leading to higher legal costs
• Training and onboarding investments become more critical, as replacing staff becomes riskier

Enhanced focus on workplace culture and well-being

With the introduction of the "right to switch off", you may need to develop?new policies around work-life balance and disconnecting outside of work hours and review and enhance your organisation's mental health and well-being initiatives.

(You can see where you stand currently using our Cultural Audit services)

Critical role of mediation and early resolution

With employees gaining unfair dismissal protection from day one, the stakes for maintaining positive workplace relationships will be higher than ever. Addressing issues early can prevent them from escalating into formal disputes or legal claims and mediation helps maintain positive employer-employee relationships, crucial in an environment where employees have more rights from the start (our Resolution Framework can help with this).

By resolving conflicts internally, you can significantly reduce the risk of costly tribunal claims and high staff turnover rates.?Early resolution practices also align well with the spirit of the new reforms, demonstrating a commitment to fair treatment and open communication.

Preparing for the future

As these reforms take shape, HR professionals need to revise policies and procedures to align with the new regulations, invest in training for managers on effective communication and conflict resolution, develop robust mediation and early resolution processes, and foster a culture of open dialogue and collaborative problem-solving.

All change comes with challenges but this can be an amazing opportunity to also create a workplace that works well for both employer and employee - where everyone feels valued, heard, and motivated. And we're here to help!

A new approach to HR for a new era of work

Remember, in this new era of employment law, proactive conflict management isn't just good practice – it's essential for organisational success.

We developed The Resolution Framework precisely for organisations who wanted an alternative to traditional HR grievance policies that, in line with the changes ahead, prioritises early resolution and open communication with staff - in a way that's baked into formal procedures.

We're offering this framework as a free, open-source resource to anyone who wants to transform their policies!

We're excited to spotlight Islington Council as our Customer of the Week! ???

Islington Council recently utilised our 2-party mediation service, expertly facilitated by Marjorie Hurwitz Bremner FCIPD . It was a lovely process that really underscored the effectiveness of mediation.

Our team had a great time reviewing the outcomes during their Project Impact Meeting, and we're thrilled to acknowledge their dedication throughout. Working with Islington is always a pleasure, and it's inspiring to see our partnership flourish as their culture continues to thrive. Keep setting the standard, Islington Council!

This week: the trouble with leading from home

Last year, the CIPD reported that 83% of UK organisations have implemented some form of hybrid working since the pandemic.?

The rise of hybrid teams has brought unprecedented challenges for leaders: How do you maintain team cohesion when half your staff is remote? What strategies can bridge the gap between digital and physical workspaces?

In our next webinar on Wed 14 August, we’ll dive deep into the realities of managing dispersed teams and the key leadership skills you (and your team) need to thrive.

Acas Dispute Resolution Conference

On 20 November, I'll be a guest speaker for a masterclass in dispute resolution as part of Acas Dispute Resolution Conference. This event will provide an in-depth look at dispute resolution options and dispute prevention approaches, drawing on my own and others' real-world evidence of approaches that work.

Pertinent to the upcoming employment law changes, we will also cover one of the most common disputes and Employment Tribunal claims – Unfair Dismissal. You can book to join here.

The TCM Reading Corner

This is one of my favourite books to recommend and his approach aligns well with the challenges we're facing under the new Labour reforms.?Instead of relying on traditional punitive measures, Grote advocates for a system where employees take the lead in their own improvement. The focus is on open communication, coaching, and giving team members the opportunity to commit to positive change. It's about moving from a "shape up or ship out" mindset to one of collaborative problem-solving.

The "Discipline Without Punishment" method offers a way to handle performance problems while maintaining a positive work environment and reducing the risk of legal disputes. It's about creating a culture where improvement is encouraged and supported, rather than enforced through threats.

You can get the book here.

That's it for now. Have a great weekend!

David