As the Labour government seeks to reassure business leaders about proposed employment law changes aimed at improving work-life balance, I share my thoughts with The Times (5 Sept) on the impacts these proposals will likely have on businesses. Here is a summary of the insights that were included in the article “’Right to switch off’ plans spook businesses”:
Implementation Costs: Businesses will need to incur substantial time and cost in understanding and implementing the planned changes. Companies will need to review their contracts, policies, and procedures, and consult with employees to agree on new ways of working.
Rise in Grievances and Claims: There’s likely to be an increase in grievances and claims from employees who will be more aware of their new rights through. Employees are likely to be vocal in requesting certain rights like flexible working.
Unfair Dismissal Claims: The changes to unfair dismissal rights, allowing employees to challenge their dismissal from day one, could be challenging for businesses. Many employees who find themselves without a job will likely assert claims in the hope of a settlement. Therefore, it is crucial for companies to implement robust recruitment and probationary processes to ensure fair grounds for dismissal.
Fair Work Agency: The creation of the Fair Work Agency, which promises to have “teeth,” will only be effective with significant government investment, given what we know about the government’s current limited resources, there is a question of how this will be meaningfully resourced.
As we await the full detail of the government’s proposed employment law changes, businesses should ensure they are sufficiently resourced to properly manage and deal with these requirements.
The government’s “smorgasbord of employment law changes will have a significant impact on businesses, and many will likely suffer in some way, especially to begin with”.
https://www.thetimes.com/article/5b7a5a50-3ea7-49b9-90df-4613c40fca0e