Businesses brace for employment rights overhaul – By Raffingers

Businesses brace for employment rights overhaul – By Raffingers

With the government promising to release draft legislation for a new Employment Rights Bill by 14 October, businesses must prepare for substantial changes.  

The draft legislation, known as the Make Work Pay plan, is progressing rapidly, with the government engaged in discussions with business organisations to refine the proposals. 

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Despite some opposition MPs’ concerns about the bill’s lack of detail and the potential financial impact on small and medium-sized enterprises (SMEs), the government has dismissed these criticisms.  

Currently, consultations are confined to meetings with trade bodies and business groups, with no public consultation expected before the draft legislation is introduced to Parliament. 

During a recent parliamentary session, Secretary of State for Business Jonathan Reynolds assured that the bill’s 100-day target is on track, though he did not specify the release date for the draft.  

MPs expressed worries that the new measures could lead to increased bureaucracy, higher business costs, and reduced financial stability. 

The proposed reforms include raising the employment floor, which will affect many UK businesses already operating above this level.  

The end of zero-hour contracts is also a key element, with plans to ensure that workers receive contracts based on the hours worked over a 12-week period. 

What can you do to prepare for the changes? 

• Review employment practices – Review your current employment practices to understand how they will be affected by the new regulations. 

• Prepare financially – Assess the potential financial impact of the new measures on your business, particularly in terms of increased costs and administrative burdens. 

• Engage with updates – Stay informed about the latest developments in the legislation and participate in any available consultations or discussions. 

• Plan for recruitment and investment – Consider how the changes might affect your recruitment and investment strategies and plan accordingly. 

• Adapt to contract changes – Prepare for the transition from zero-hour contracts to more stable contracts reflecting regular working hours. 

If you need advice on how the new draft legislation may impact your business, please contact Mehul Thaker at Raffingers on mehul.thaker@raffingers.co.uk.