As a part time Finance Director or interim Finance Director, it is important to be aware of recent changes in law regarding employment rights. Even if the company has an HR director you should still check that the board are aware of these important changes.

The UK government has introduced the Employment Rights Bill, marking a significant upgrade to workers’ rights, with reforms expected to come into effect over the next two years. This bill aims to strengthen protections against exploitative practices such as zero-hours contracts and “fire-and-rehire” tactics. Key measures include guaranteed-hours contracts for those on low-hours agreements if they work consistent hours, new paternity and bereavement leave from day one, and flexible working becoming the default unless proven unreasonable by the employer.

The bill also proposes removing the two-year qualifying period for unfair dismissal protections, with the potential addition of a statutory probation period for assessing new employees. In total, the bill outlines 28 reforms, including enhancing Statutory Sick Pay (SSP) by removing the lower earnings limit and eliminating waiting periods.

According to Deputy Prime Minister Angela Rayner, these reforms aim to balance employee security with business needs, supporting fairer workplace practices that enable employees to thrive. Additional requirements for large employers will include addressing gender pay gaps and developing action plans for menopause support. Furthermore, the bill proposes repealing restrictive anti-union legislation and creating a Fair Work Agency to consolidate enforcement efforts.

Key Provisions:

• Flexible working to be the default, with employer justification required for exceptions

• New bereavement leave entitlement

• Strengthened protections for pregnant employees and new mothers

• Removal of discriminatory minimum wage age bands and adjustments for the cost of living

• Holiday pay enforcement and improved SSP regulations

Future consultations are set to discuss proposals for “right to disconnect” policies, mandatory ethnicity and disability pay gap reporting, and revisions to parental and carer’s leave frameworks, ensuring policies are in line with evolving employee and employer needs.

If you need a part time Finance Director or interim Finance Director contact us on [email protected] or ring us on 01628-623444.