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

CMAC completes full acquisition of Coach Hire Comparison Cmac

CMAC completes full acquisition of Coach Hire Comparison

18 Sep 2026

2

'Mayoral devolution is an opportunity not to be missed' BwDBC Phil Riley

'Mayoral devolution is an opportunity not to be missed'

18 Sep 2026

3

Jobs axe falls as chemical plant closure confirmed AGC Logo

Jobs axe falls as chemical plant closure confirmed

18 Sep 2026

4

Partnership will drive AI innovation and growth across Lancashire Business School Partnership With Seriun 2026

Partnership will drive AI innovation and growth across Lancashire

17 Sep 2026

5

Feeling the buzz at Lancashire Business View issue 130 launch 130 Launch

Feeling the buzz at Lancashire Business View issue 130 launch

17 Sep 2026

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
Built Environment Conference 2026
BEC26 WW Logo720 24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

19:00 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

The Marketing Meetup : Lancashire
Sept_TMM_Lancashire.png.png 22 Sep 2026 - 22 Sep 2026

The Marketing Meetup : Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

Unfair Dismissal Reforms Under the Employment Rights Act: What Employers Need to Know
Brabners logp .png.png 23 Sep 2026

Unfair Dismissal Reforms Under the Employment Rights Act: What Employers Need to Know

Webinar , Remote , Remote

10:00 - 11:00

Launch Event - Business Support and Grant Programmes
Choose Chorley 23 Sep 2026

Launch Event - Business Support and Grant Programmes

Strawberry Fields Digital Hub, Chorley, PR7 1PS

08:45 - 11:00

The Business Network Central and East Lancashire
LBV Website Events GraphicBusiness Network 2 24 Sep 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Employment Law Update Lancashire
LBV Website Events GraphicEmployment Law 1 24 Sep 2026

Employment Law Update Lancashire

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

09:00 - 12:00

September Freelancer Meet-Up
 Freelancer Meet-Up Square September .png.png 24 Sep 2026 - 24 Sep 2026

September Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

90 Day Business Planning Workshop
90 Day Business Planning Workshop 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin