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Is the “New Deal for Working People” a good deal?

July 31, 2024

  1. Basic Individual Rights from Day 1:

  • Significant changes granting workers’ rights from the first day of employment, including protection against unfair dismissal, parental leave, and sick pay.
    The removal of the 2-year minimum service requirement for unfair dismissal claims.

  1. Probationary Periods and Hiring Practices:

  • Ensure fair and transparent probationary periods.
    Employers will need to refine recruitment policies, increase candidate screening, and document performance issues to mitigate unfair dismissal claims.

  1. The Right to Disconnect:

  • A new "right to switch off" will allow workers to disconnect from work outside of working hours.

  • Employers and workers can agree on bespoke policies.

  1. Zero Hours Contracts:

  • New rules will prevent the abuse of zero hours contracts.
    Employers must ensure zero hours contracts comply with minimum standards, reflecting regularly worked hours over a 12-week reference period.

  1. Fire and Re-hire:

  • A new statutory ACAS Code of Practice on Dismissal and Re-Engagement is being introduced, with stricter regulations and increased penalties for non-compliance. “Worker” (temporary labour) and employee (permanent) will essentially be the same going forward. The spirit of this is sound but in practice, it’s not straightforward. Employers take on temps to solve short term manpower challenges and it’s a service they can switch on and off on demand. This actually works well for temp staff too – they can also switch this service on and off as their lifestyle requires. It is likely that some employers will not offer temporary positions because of the proposed changes. There will be contract revisions galore over the coming months.

  • Should temporary workers have the same rights as permanent employees? That can be debated. Temporary workers will often get paid more for accepting the risk of short-term contracts without the safety of a permanent position and this suits some people – but one could argue that they can’t have it both ways, i.e. the financial uplift AND all the same conditions.

Pros

Granting employees the right to claim unfair dismissal from day one ensures immediate protection, fostering a sense of security and stability in the workforce. This can encourage loyalty and commitment among employees, knowing they are safeguarded from the start. Allowing employees to challenge unfair dismissals from the outset promotes fairness and equity in the workplace.

Cons

For those of you reading this as an employer, there is a burden on employers. The administration and time involved of candidates able to claim unfair dismissal from Day One will be a problem for many, regardless of whether there are grounds for unfair dismissal or not. This will be abused by some.

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