New government brings new HR policies: What SMEs need to know

By RfM Transform

12 Aug 2024

pexels-pixabay-272980.jpg.jpg

With a new government in place, several significant changes to employment law are on the horizon. These changes aim to enhance employee rights and protections, but what does this mean for small businesses?

Tina Holt, HR director, details the latest updates and their implications.

Key Changes in HR Compliance:

Day-One Rights for Unfair Dismissal

Status: Proposed

Details: Under the new government, employees will have the right to unfair dismissal protection from the first day of employment, eliminating the previous two-year qualifying period. This would require SMEs to handle dismissals with the same level of care from the very start to avoid unfair dismissal claims.

Implications: If this policy comes into effect, SMEs must improve their recruitment processes to ensure they hire the right candidates and manage performance rigorously from the get-go.

Flexible Working Requests

Status: Implemented

Details: Employees can now request flexible working from their first day of employment and make up to two requests per year. Employers must respond within two months and provide a valid reason if denying a request.

Implications: SMEs may need to adapt their operational flexibility to accommodate these requests, balancing employee needs with business requirements.

Carer's Leave

Status: Implemented

Details: Employees are entitled to one week of unpaid leave per year to care for dependants, effective from the first day of employment.

Implications: SMEs must incorporate this leave entitlement into their HR policies and plan for any potential disruptions.

Redundancy Protection for Pregnant Employees

Status: Implemented

Details: Enhanced protections require employers to offer suitable alternative employment to pregnant employees and those on family leave, extending up to 18 months post-birth or adoption.

Implications: SMEs need to carefully plan redundancies and ensure compliance with these new protections.

Did you know: Brought in as part of the 2017 reforms to the Loi Travail (labour law), the French ‘right to disconnect’ allows employees to not receive, or to be able to ignore, all digital forms of work communication – phone calls, emails, texts, etc – outside of their defined and contracted working hours. 

Right to Disconnect

Status: Proposed

Details: A new policy provides employees with the right to disconnect from work communications outside of working hours.

Implications: SMEs will need to develop HR policies and build on their work culture to respect this right while maintaining operational efficiency.

Zero Hours Contracts and One-Sided Flexibility

Status: Proposed

Details: The government plans to ban exploitative zero hours contracts and ensure all jobs provide a baseline level of security and predictability.

Implications: SMEs using zero-hours contracts must review their employment practices and consider more stable arrangements for their workers.

Single Enforcement Body

Status: Proposed

Details: Establishing a Single Enforcement Body to enforce workers’ rights, including strong powers to inspect workplaces and take action against exploitation.

Implications: SMEs need to be prepared for more coordinated and proactive enforcement of employment laws.

Family-Friendly Rights

Status: Proposed

Details: Reviewing and improving family-friendly rights, including better parental leave policies and protections for pregnant workers.

Implications: SMEs will need to update their family-friendly policies to align with new legislation.

Menopause in the Workplace

Status: Proposed

Details: Thousands of women are struggling at work due to a lack of support in dealing with symptoms of menopause. The new government will require large employers with more than 250 employees to produce Menopause Action Plans, similar to gender pay gap action plans. These plans will outline how employers will support employees through menopause. Additionally, guidance will be published for small employers on measures to consider, such as uniform and temperature adjustments, flexible working, and recording menopause-related leave and absence

Implications: Menopause is a hot topic (no pun intended) and it’s great to see that women are being considered in this new piece of legislation. SMEs should take note of the upcoming guidance and consider implementing supportive measures for employees experiencing menopause to foster an inclusive workplace and enhance employee wellbeing and productivity.

Are These Changes Set in Stone?

Not yet. While some changes, such as flexible working requests and carer's leave, have already been implemented, others, including day-one rights for unfair dismissal and the right to disconnect, are still proposed and awaiting final legislation. The new government has made clear commitments to these reforms, but the specifics and timelines may evolve as the legislative process progresses.

What This Means for Small Businesses

For small businesses, these changes represent both challenges and opportunities. The enhanced protections and rights for employees necessitate updates to HR policies and processes, potentially increasing the administrative burden. However, these changes also promote a fairer and more supportive working environment, which can only enhance employee satisfaction and retention.

To effectively manage these new HR compliance changes, SMEs should take several proactive steps. At RfM Transform, we provide cost-effective and comprehensive support to help you navigate these challenges seamlessly.

Recommendations for SMEs

  • Review and Update Policies: Ensure all HR policies reflect the new laws, particularly those related to dismissal, flexible working, and employee leave.
  • Train Management: Educate managers on the new regulations and the importance of following fair procedures from the start of employment.
  • Plan for Compliance: Develop a compliance plan to manage the additional administrative tasks and ensure all new rights and protections are respected.

How RfM Transform Can Help

At RfM Transform, we can help you with all of this and more!

  • Director-led HR Support: Ensuring compliance and streamlining HR processes from as little as £65+vat per month.
  • Staff-Central People Management System: Our cloud-based app helps you manage payroll, employee records, and administrative tasks efficiently.

Ensure your business not only meets the new HR compliance requirements but also creates a positive and supportive work environment. For more detailed information and tailored solutions, get in touch RfM Transform.

Latest news

1

Post Office future secured as council explores new options Abington Street Post Office

Post Office future secured as council explores new options

17 Sep 2025

2

Airframe Designs supports new defence strategy with pledge to nurture talent Jerrod Hartley

Airframe Designs supports new defence strategy with pledge to nurture talent

17 Sep 2025

3

Fox Group makes second acquisition since Stellex Capital backing Roger Thistlethwaite, managing director NMS Civil Engineering Limited. Paul Fox, CEO Fox Group. John Flood, Executive Director Fox Group

Fox Group makes second acquisition since Stellex Capital backing

17 Sep 2025

4

Villa at Wrea Green bought for £3.6m by Haythornthwaite family The Villa Wrea Green courtesy of The Villa Wrea Green

Villa at Wrea Green bought for £3.6m by Haythornthwaite family

16 Sep 2025

5

Fourth Lancashire Bodycare store to shut Nick Holloway of administrators Interpath

Fourth Lancashire Bodycare store to shut

16 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Ladies Lunch
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
18 Sep 2025 - 18 Sep 2025

Ladies Lunch

Lancaster Golf Club, Lancaster, LA2 0AJ

12:00 - 16:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day
MTD drop in session.jpg.jpg
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day, Blackburn, BB1 5QB

10:00 - 16:00

The Marketing Metrics That Matter – Sept 25
Metris 25.09.png.png
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

The Marketing Metrics That Matter – Sept 25

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin