SME’ news Post Election.

SME’ news Post Election.

After the recent government changes and ongoing updates, to labour laws medium sized businesses (SMEs) must stay up to date and flexible to ensure compliance. Here are key points for SMEs to consider following the information from the Kings Speech.

Key Points for SMEs Post Election…

Updates on Employment Status

Labour has proposed introducing a new 'worker' status that merges the employee and worker designations. While this change is significant it's essential to remember that consultation will be necessary for any adjustments. As of now there are no changes so SMEs should keep an eye out for updates in the initial 100 days of the new administration.

Day One Rights – Unfair Dismissal

The government intends to eliminate the two-year qualifying period for protection against dismissal granting employees safeguarding from day one of their employment. Additionally, day one rights will encompass leave and sick pay. These modifications will call for consultations and legal adaptations. Indicate a shift, towards bolstering employee safeguards.

Changes, to Zero Hour Contracts

The Labour party has announced its intention to phase out zero-hour contracts. This move is aimed at enhancing job security for workers and reducing risks for employers. While zero-hour contracts do offer some flexibility for both parties it is advisable for medium enterprises (SMEs) to reassess their recruitment strategies considering these changes.

Implications for Mental Health Rights of Employees

There are plans to strengthen the rights of employees regarding health. One proposed change involves eliminating the waiting period before Statutory Sick Pay kicks in which could greatly benefit employees dealing with health issues. It is important for SMEs to closely monitor these developments to ensure compliance.

The Right to Unionise, Impact on Small Businesses

Discussions are ongoing regarding the right to unionize and how it may affect businesses. Employers might be obligated to inform their employees about their unionization rights. While immediate action may not be necessary SMEs should be prepared for consultations and potential shifts in union related regulations.

The responsibilities of HR professionals have grown significantly amidst the challenges posed by the pandemic. It is essential that HR teams prioritise their wellbeing as they navigate through these demanding times.

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