Labour’s Employment Rights Bill was published on 10^th October, the first stage of their Plan to Make Work Pay, in what’s been hailed by CEO of the CIPD as ”the greatest shift in employment legislation in decades”.

The Bill is the headline plan, there is still lots of detail missing, and some changes that were predicted, have not been included in this stage. The government plans to consult on the reforms next year, and any new legislation will not be implemented until 2026, at the earliest.

Here are the key things you need to be aware of:

Right to claim unfair dismissal will be a day one right, but with a caveat

Currently those dismissed with less than 2 years continuous service can’t claim unfair dismissal at an employment tribunal.  This requirement for 2 years service will disappear, and any employee would in theory have the right to make a claim.

However, there will be consultation on the use of a statutory probation period to allow for an initial judgement about a new joiner’s suitability for the role. Indications are this will either be a 6 or 9 month statutory probation period. The suggestion is that there will be a simplified process for dismissal during the statutory probation period, but there is still much detail to be provided prior to 2026 about how it will work in practice.

Employers will be thinking about how they can make their recruitment processes more stringent, so the right hiring decisions are made at the start, with some employers saying that they are less likely to take risks at the appointment stage, for example offering a role to a candidate who lacks experience but shows enthusiasm.

Flexible working will be the default, but with a caveat

Flexibility will be the default, unless the employer can prove it’s unreasonable, for a potentially valid reason, including the burden of additional costs, a detrimental effect on ability to meet customer demand, an inability to re-organise work among existing staff or recruit additional staff, and a detrimental effect on quality or performance; all of which are currently justifiable reasons for rejecting a flexible working request.

Currently employees with any length of service can request to work flexibly, and this request can only be refused on specific grounds – which are similar if not the same as those included as a valid reason for disallowing default flexibility. There is a change of emphasis and there will be a greater requirement for the employer to demonstrate why the role can’t be done flexibly as requested.

Employers will be thinking about how they manage the selection and onboarding processes so there is transparency about the employee’s requirement or desire for flexibility and what is reasonable, from the start.

Zero-hours contracts will stop, but with a caveat

Workers will have the right to be offered a contract with guaranteed hours, based on their regular hours worked over a defined period, expected to be the previous 12 weeks.  However, workers can opt to remain on a zero hours contract if they prefer.

This replaces previous legislation due to be implemented where workers could request a predictable working pattern if they had 26 weeks’ service.

Employers will be considering how they currently use zero hours contracts, if there’s an alternative contract (for example a fixed term contract), and review the hours their zero hours workers currently work to see how they may be impacted.

Parental rights will be strengthened with expanded leave entitlements

Employees will have a day one right to paternity, parental, and bereavement leave. Currently employees need 26 weeks of continuous service to qualify for statutory paternity and ordinary parental leave.

Bereavement leave will extend beyond the existing entitlement for parents who lose a child. Broader compassionate leave rights are expected but the details of how long and whether it will be paid remain uncertain.

Employers will be considering what the financial and practical impact of this change might be, looking at the demographics of their workforce, allowing for planning and mitigating risk.

Employees will get sick pay from their first day of illness

There will no longer be any ‘waiting days’ before an employee who is off work due to sickness will be eligible for SSP.  This pay will now be available from the first day of their absence, provided the employee meets the eligibility criteria. The criteria are also likely to be changed to make it more accessible for all employees, regardless of their earnings level.

Employers will be looking at their current sickness absence figures, and planning for the increase in costs of the additional 3 days SSP applicable.

There will be a ban on ‘fire and rehire’ practices, but with a caveat

The government will shut down the ‘loopholes’ that allow ‘fire and rehire’ and ‘fire and replace’ to continue. The practice of terminating an employee’s contract and rehiring them on different terms will be restricted, and these dismissals will be treated as ‘automatically unfair’, unless employers can evidence financial hardship as the reason for the change to terms and it was unavoidable. Employers will need to show such a change was a ‘last resort’ after thorough consultation and consideration of alternatives.

Employers will be considering what other changes they could make should there be a need to reduce costs across the business, before looking at forcing through changes to worker terms and conditions, so they can demonstrate it is a last resort.

Collective redundancy consultation and notification requirements will change

When an employer proposes making 20 or more redundancies at one establishment, there is a requirement to notify the DBIS and collectively consult.  The changes proposed mean there will be a requirement to collectively consult if the Company intends to make more than 20 redundancies, regardless of which establishment in the UK the losses will apply.

Employers will need to review their policies and internal procedures for establishing the need for collective consultation processes and plan accordingly should redundancies be necessary.

Requirement to prevent sexual harassment of workers will be extended

On 26 October, the Worker Protection Act 2023 came into force, introducing a new duty for employers to take ‘reasonable steps’ to prevent sexual harassment of their employees.  The Labour government has set out its intention to require employers to take ‘all reasonable steps’ to prevent sexual harassment, rather than just ‘reasonable steps’. It will also make employers vicariously responsible for protecting workers against harassment by third parties, a measure which was removed from the Worker Protection Act during the parliamentary process.

Employers will need to go ‘belt and braces’ with the preventative steps they can take in their business to prevent sexual harassment and tighten up how they can reasonably prevent harassment by a third party, as well as how they should respond to a complaint in light of this new liability.

Firms will be required to publish their intentions around improving equality

Large organisations (250+ employees) will have to develop and publish an equality action plan to show the steps they are taking in relation to gender equality.

 A new Fair Work Agency will crack down on unscrupulous employers

The government has announced it will establish the Fair Work Agency, combining existing enforcement functions around minimum wage, statutory sick pay, the employment tribunal penalty scheme, labour exploitation and modern slavery, to create a “strong, recognisable single brand” that will make it easier for individuals to know where to go for help. The Fair Work Agency will also cover a new area of enforcement – the holiday pay policy.

The Strikes Act and Trade Union Act 2016 will be repealed

The Bill will repeal the minimum service levels legislation introduced in 2023, and will repeal all but two parts of the Trade Union Act 2016.

The new government has set out plans to introduce new rights of workplace access for trade union officials and employer obligation to inform employees of their right to join a union.  The bill also brought forward measures to modernise trade union laws, including a reduction in the threshold for a recognition application from 10 per cent of the workforce.

Employers may want to introduce a ‘staff forum’ as a preventative measure to minimise the likelihood of union presence or recognition, or how they could engage proactively with unions in a positive way to build good employee relations. Contracts will need to be revised to include employee’s rights to join a union, and a communications plan to ensure the need to remind them will need to be devised.

Other plans outside of the Employment Rights Bill

The government has stated some of its commitments will be delivered outside of legislation, and they believe they can deliver more reform and therefore do not need all the commitments to be included in the bill.

This includes:

• Introducing the ‘right to switch off’, to prevent employers from contacting staff outside of their working hours.
• expanding the Equality (Race and Disability) Bill making it mandatory for large employers to report their ethnicity and disability pay gap.
• consulting on single worker status, aiming to transition towards a simpler two-part framework for employment status
• reviewing parental leave and carers’ leave systems

As a reminder, Labour’s Employment Rights Bill is subject to consultation as well as the usual passage through the House of Commons and the House of Lords, before it will become law in 2026, so there is plenty of time to prepare. More information is available here.

If you need help preparing, please get in touch.

The Covid-19 pandemic had an undeniable impact on everyone’s lives.  During that time, the requirement to work flexibly created a new landscape, which employers are still having to navigate.

For some employees, that switch to remote, flexible working appears to have resulted in the ‘always-on’ phenomenon. There’s no real boundary between work time and personal time. This means that employees can work around other personal commitments or activities, if they wish. However some people find it difficult to switch off, in some cases leading to a culture of presenteeism.

What is Presenteeism?

The CIPD states that presenteeism occurs when people work when in suboptimal health.  Your employees are attending work when they are unwell, and are therefore unable to be productive.  Absenteeism has a huge cost implication for employers.  But interestingly, the CIPD also reports that presenteeism has a much bigger cost (according to research by Deloitte).

Why is it a problem?

Unless addressed, presenteeism can lead to a culture where presence indicates commitment and success. I.e., if you turn up early and leave late you’re doing a great job, you will be more valued, and potentially rewarded accordingly.  What it doesn’t do is lead to an increase in productivity and it can cause a toxic culture. These things will drive away talent, further decreasing productivity.

There are also other effects, for example:

• Employees come to the workplace with contagious illnesses, which spread through the workforce, increasing absence and / or presenteeism.
• Employees won’t take the rest from work they need to recover, therefore stay unwell for longer, or their health deteriorates further.
• Employees working while unwell will understandably demonstrate less enthusiasm and motivation, leading to low morale. This low morale may be contagious within the workforce, even in your healthy employees.
• Depending on the sector, employees who are unwell are more likely to have workplace accidents, putting themselves and others at risk.
• Presenteeism means that employees aren’t giving their full commitment to their work, and therefore will not progress and develop, which may lead to further demotivation and disengagement.
• The quality of work produced is less likely to be as high as it might otherwise be, if the employee was healthy. This may have a knock-on effect on colleagues, for example causing frustration, or blockages and delays in systems and processes.

What can you do about it in your business?

Leaders need to be proactive in changing the narrative about the behaviours that are valued in their business. They need to move away from a ‘bums on seats’ approach (i.e. presenteeism), and instead focus on outputs and achievements. One of the first things they can do is lead by example. Create those work and home time boundaries. For example, only respond to emails during working hours, or as close as you can get (unless it’s business critical). Encourage employees to leave work, or if remote, switch off at the end of their contracted hours.

Tips to reduce presenteeism

• Find out why people are behaving this way, either through focus groups or an anonymous survey, and find out about their concerns around taking time off ill, and blurred work / home boundaries.
• Look at your sickness absence policy. Will employees suffer significantly financially every time they take a day off sick?  Do you have a fair sickness absence review policy which is consistent, reasonable and supportive?  And if you make changes to your policy, ensure these changes are communicated. Create clear messaging that supports taking time off if it’s needed, so people can fully recover and then return to work.
• Consider what you could do to promote a healthy working environment that supports mental and physical wellbeing.  For example discounted gym membership, walking meetings, cycle to work schemes, wellbeing apps, mental health first aiders and training for all employees.
• If you use zero hours contracts, consider if this is a factor. Review your resourcing model to establish if you could reduce these and create more stability for your workforce.
• Improve manager / staff communication, so that managers are familiar with their employees and have positive working relationships. Employees may then feel the can share any health concerns with confidence, and managers will spot warning signs of any health or wellness issues.

If you’ve noticed your employees seem to be working when they are clearly unwell, and you want to find out why, or need support to change those habits, get in touch.

Mental Health Awareness week in the UK is an initiative introduced by the Mental Health Foundation.  In 2023, Mental Health Awareness week is from 15-21^st May and the theme this year is Anxiety.

Anxiety can affect people both physically and mentally. People may experience different symptoms, including increased heart rate, headaches and chest pains.  It can cause people to feel tense or nervous, making it hard to relax and detrimentally affect sleep and concentration.

Mental health is something everyone has, like physical health, and they are connected – you will have noticed physical symptoms of anxiety described above.  Equally, those experiencing physical health problems can experience declining mental health as a result.

Mental health at work

Your employees’ mental health problems have a big potential impact at work, for example:

• Increased absence from work
• Lack of concentration leading to reduced productivity
• Increased accidents at work due to lack of attention
• Increased attrition rates
• Poor morale and low-esteem in the workforce

It is estimated that cost to employers of poor mental health at work cost £56 billion per year [1], consisting of:

• absenteeism cost: £6.1 billion
• presenteeism cost: £24.8-£27.6 billion
• staff turnover cost £22.4 billion

So, if you consider the cost, investing in ways to support good mental health at work seems to be a ‘no-brainer’.

Promoting good mental health at work

Businesses can take small steps to support their employees’ mental health. Here are some ideas:

1. Talk to people in your team and get to know them, so you can notice any changes in their behaviour and demeanour.
2. In your regular 1-1s with your team, ask them how they’re feeling, if they have any worries or concerns, and respond constructively. Normalise that kind of conversation.
3. Encourage your staff to ‘switch off’ out of work, especially when it comes to accessing and responding to emails outside of working hours.
4. When addressing issues with your staff, make sure you deliver difficult messages in a kind and supportive way.
5. Consider introducing an Employee Assistance Programme which offers a confidential counselling support service.
6. If you operate as a remote business, think about introducing more face-to-face interactions with your team, or alternatively review the frequency of video / phone calls.
7. Encourage employees to take physical exercise, whether lunchtime walking or yoga, walking meetings, sponsored challenges, subsidised gym membership, volunteering days or competitive ‘step challenges’ between teams.
8. Introduce a ‘buddy’ system, where a colleague is allocated to an employee as an additional support. This provides another way for them to flag concerns.
9. Train some employees as Mental Health First Aiders, and provide regular training about mental health to all employees and managers.
10. Ensure your managers are meeting their team members regularly and providing feedback to them, not just via an annual appraisal system.

Mental Health problems affect one in four people in any given year [2] so if you have a team of 12 people, 3 of them may be struggling.  If those three employees are absent as a result, then that could have a big impact on your business.

If you would like help with supporting the mental health of your employees, get in touch here.

References:

1 – Source: Deloitte | March 2022

2 – Source: Mind.org.uk

Absence of more than 4 weeks is often defined as long-term sickness absence. In some cases an employee’s absence can continue month after month.  But how do employers manage this absence in a positive and pro-active way that benefits the business and the employee?

Here are 5 tips for managing long-term sickness absence:

1. Make sure you have a sickness absence policy.  Any policy you have should include: absence notification requirements; sick pay applicable and what the qualifying criteria is; expectations regarding contact with the employee during sickness; an absence review process and how long-term absence will be dealt with.
2. Introduce an Ill Health Capability procedure. This will enable you to manage an employee’s long-term absence through a fair and transparent process.
3. Maintain regular communication with the employee.  Contrary to popular belief it is rarely appropriate to cease contact with an employee while they are off sick.  Limit this contact to business updates and enquiries regarding the employee’s health.  You should put no pressure on the employee to return or deal with work during their absence.  A supportive and empathetic approach should be taken, focussed on their wellbeing and what you can do to support them. This will support their ongoing engagement with the business and hopefully a productive return to work.
4. Consider the steps you need to take to support the remainder of the team during the employee’s absence.  This will reduce any potential resentment about additional workload. The danger is that resentment builds and is directed at the absent employee, making their return to work difficult. Carry out regular check-ins with the team to enable you to address any issues they share.
5.  Ensure you follow the policies you have in place correctly.  Put milestone dates in the diary to prompt actions under the policies and procedures to ensure you stay on track. For example: the date the current fit note expires; next planned contact date and why; when Company and Statutory sick pay expires, and the stages of the Ill Health Capability procedure.

Although every situation is different, you will be best placed for success if you have these basics in place.   The worst-case scenario is that you get it wrong and receive an employment tribunal claim against you alleging disability discrimination.  In addition to this, the employee may be disengaged even if they do return, therefore they are unlikely to be productive.  The alternative is that they ‘disappear into the ether’, making it difficult to resolve the situation one way or another.

Helpful HR can support you if you have an employee absent from work due to long-term sickness, so get in touch and we can get you on track and limit the risk of a costly employment tribunal claim.

Over the last 6 months mental health and wellbeing support has become a hot topic, as data emerges about anxiety and stress levels in the context of returning to work and to the workplace.

What do we know?

Some key statistics regarding mental health and wellbeing are coming to light:

• 72% or employers are planning to bring teams back to the office by mid-October ¹
• 33% of UK workers don’t have faith in their colleagues when it comes to hygiene protocols ¹
• 44% of workers are worried about sharing equipment ¹
• By end May 2020 calls to the UK’s national domestic abuse helpline had increased by 66% ²
• The number of adults experiencing depression has doubled during the pandemic ³
• 37% of people in the UK are suffering from high anxiety ³
• 22% of those with no pre-existing mental health issues now report having ‘poor’ or ‘very poor’ mental health ⁴
• 65% of those with pre-existing mental health issues report that those issues are now worse ⁴

In the context of these statistics, fears of a mental health crisis seem well founded.

What does this mean for employers?

There are potentially many ways in which the mental health crisis will affect employees, as people will have had very different experiences of the pandemic. Here are some of the issues your employees may be having:

• Job security – as more and more businesses announce job losses, anxiety about impending unemployment will be high
• Isolation – for some remote working has left them feeling isolated and de-motivated
• Mental and physical exhaustion – for many who had to balance work and childcare and/or home-schooling it has been extremely stressful and tiring, creating what could manifest itself as ‘burn-out’
• Personal relationship stress – spending such a long time in close proximity with partners may have put a strain on relationships
• PTSD and bereavement – for anyone who contracted the virus, there are reports of potential longer term mental and physical issues; and those who have lost loved ones may still be dealing with grief and feelings of guilt

Employees may find it difficult to focus, concentrate and  stay motivated and engaged. For those who are working from home for the foreseeable future, the feeling of being disconnected from their colleagues may continue. Without interventions, these issues could result in both a downturn in productivity and difficult and sensitive employee relations issues to manage.

Pro-active employers will definitely be on the front-foot if they can support employees through the next phase of the coronavirus pandemic and beyond.

Why should employers focus on mental health and wellbeing?

As well as the ethical and moral arguments for supporting employees who are struggling, there is evidence to suggest that wellbeing could increase productivity by 12% and that unhappy staff could be 10% less effective. ⁵

If employers do provide support for their employees, they would undoubtedly become more resilient. If issues arise at any point in the future those employees will be able to manage more successfully, leading to less employee absence.

Employers will also find that how they treat people during this time will define them and their brand. Being supportive will drive both loyalty and make them a more attractive employer for the best talent in the longer term.

From a practical perspective, if employers ‘catch people’ before they fall, they will avoid difficult employee absence issues which can be time-consuming and expensive to manage.

There is also the issue of the duty of care employers have for employees. Employers have a duty to minimise risk of health and safety issues, and this includes the risk of mental health issues. Risk assessments should be done, steps taken to minimise risk and these should both be communicated to employees to ensure employers don’t breach of health and safety regulations.

In addition, as mental health issues can be regarded as a disability, employers have a duty to make reasonable adjustments to accommodate and support those with mental health issues.

What can employers do?

There is a plethora of solutions to address the mental health and wellbeing. Here are some ideas:

Communication: Make people feel connected and find out how people are feeling.

• Conduct regular group and individual check-ins
• Hold virtual team meetings – peer or manager lead
• Create virtual ‘pub’ meet ups over video conference
• Appoint ‘check-in’ champions in each team who can re-create the ‘water cooler’ catch up moments

Line manager proactivity: Create a supportive environment.

• Be a sympathetic ear – not just focussing on work / outputs
• Train managers as Mental Health First Aiders
• Ensure managers are keeping up to date with how individuals in their team are coping
• If returning to workplaces is causing anxiety, ensure managers are discussing options and solutions to help address those anxieties
• Communicate with employees to reassure them about what the company is doing to minimise risks

Update or create a Mental Health and Wellbeing Policy

Re-visit your existing policy and update it to account for issues created by the coronavirus pandemic and different norms relating to work and workplaces. This will create the framework within which the business will function in this area, and create consistency.

Research, propose and implement a variety of support ideas to tackle the variety of issues people may be experiencing, to cover physical health, diet, financial health as well as mental health and wellbeing. All of these factors play a part in keeping employees healthy in body and mind.

If you would like to discuss support you could put in place for your employees, get in touch with Helpful HR here.

References:

1 – Solopress Survey via HR Review: https://www.hrreview.co.uk/hr-news/workers-fear-returning-to-work-due-to-colleagues-lack-of-hygiene/126356?utm_source=Gatormail&utm_medium=email&utm_campaign=HR+Daily+Friday+-+17-07-2020&utm_term=Government+bury+its+%27head+in+the+sand%27+in+response+to+House+of+Lords+IR35+report&utm_content=108317&gator_td=o3G5kc7rW2VpP8pLbvvPKX8i65b%2blZYHTpgu38q3MGha0tK5Q3sXgBaP1prmh6Uahsujuoe2CuGf6B3yFqphtXubssiphNgkvdH1KnKkAGx3lvuNf7CA%2bu8sK%2bvpNvjxNCLDEd8aOmaV9F4yS%2bf%2f2pCjx64K0MeyKpb1VszBRbl53pQV6Ng3a%2fnLQ8Dir5b9XfQusRxJpXxh1CL8mZhbHg%3d%3d

2 – Independent: https://www.independent.co.uk/news/uk/home-news/domestic-abuse-lockdown-reports-school-reopen-coronavirus-a9703926.html

3 – Office of National Statistics via People Management: https://www.peoplemanagement.co.uk/experts/legal/supporting-workers-mental-health-during-covid?utm_source=mc&utm_medium=email&utm_content=pm_daily_03092020.Employment+law%3a+Supporting+workers’+mental+health+during+Covid&utm_campaign=7295441&utm_term=1115500

https://www.peoplemanagement.co.uk/voices/comment/employers-must-act-restore-workforce-mental-health?utm_source=mc&utm_medium=email&utm_content=pm_daily_24072020.Opinion%3a+Employers+must+act+to+restore+their+workforce’s+mental+wellbeing&utm_campaign=7295441&utm_term=1115500

4 – Mind via People Management: https://www.peoplemanagement.co.uk/voices/comment/employers-must-act-restore-workforce-mental-health?utm_source=mc&utm_medium=email&utm_content=pm_daily_24072020.Opinion%3a+Employers+must+act+to+restore+their+workforce’s+mental+wellbeing&utm_campaign=7295441&utm_term=1115500

5 – University of Warwick study in 2015: https://warwick.ac.uk/newsandevents/pressreleases/new_study_shows/

This month we’ve watched Radio 2’s Zoe Ball struggle through cycling 400 miles from Blackpool to Brighton entitled “Zoe’s Hardest Road Home”. We also saw Radio 1’s Greg James struggle with his “Pedal to the Peaks” challenge, which the Beast from the East put a stop to. Watching these Sport Relief challenges, we’re encouraged not only to donate to the cause, but to take on a physical challenge ourselves.

Since the start of 2018, every month there has been something in the media which drives healthy living. In January it was Dryanuary, in February it was the Winter Olympics and in March it’s the aforementioned Sport Relief.

The benefits

While we may start to tire of feeling pressure to exert ourselves, the benefits of encouraging physical activity cannot be underestimated.

Did you know?

• 80% of commuting employees felt more energised after a walk to the office
• 74% of employees acknowledge that getting outside during a working day improved their mood
• 85% of employees believe keeping active is good for their mind and body
• 94% of employees said exercising relieves stress

(Source: Asics survey|2017)

These results show employees really value physical exercise. Businesses could also enjoy the benefits of having a more energised, happy and less stressed (if not stress-free) employee population. Unfortunately, despite the benefits, over half of employees felt work prevented them from going to the gym. (Source: HR Grapevine|2017)

What next?

Businesses which promote and support the healthy practices employees value could see an increase in employee engagement and in turn, productivity.

One size doesn’t fit all, but if you’d like to find out what you could do to promote the health and wellbeing of employees in your business, please do get in touch.