Getting ready for the Employment Rights Bill
Employers have perhaps never confronted such extensive or challenging obligations. Our latest report delves into the shifting terrain of employment law and workplace dynamics, highlighting the challenges employers face in an increasingly complex environment. From the forthcoming Employment Rights Bill to the rise of employee activism and the pitfalls of handling social media, the findings underscore the pressing need for businesses to adapt and prepare.
The Employment Rights Bill
The Government's forthcoming Employment Rights Bill introduces a raft of new statutory rights, aiming to reshape the employer-employee relationship. While many employers express support for the Bill’s overarching aims—particularly when they align with existing corporate values—there is widespread confusion about the specifics. 58% of employers admitted to having little to no knowledge of its provisions. And of those who say they do understand, we found that many were unable to differentiate between the current law and the changes that are proposed.
This knowledge gap poses significant risks. Employers who fail to familiarize themselves with the new legal landscape may expose their organizations to litigation risk. The report also reveals that 81% of employers anticipate the Bill will drive-up costs, prompting many to consider cost-cutting measures such as reducing recruitment or eliminating jobs altogether.
Small and medium-sized enterprises (SMEs), which made up approximately half of the respondents, appear particularly apprehensive. They are less enthusiastic than larger employers about new measures such as "day one" rights against unfair dismissal and enhanced trade union rights.
Beyond legislative changes, the report highlights the growing influence of employee activism on workplace dynamics. Issues that once seemed external to the workplace—such as geopolitical conflicts or social justice movements—are now increasingly finding their way into boardrooms and HR departments.
The rise of employee activism
Employee activism is a more prevalent feature of large organizations, where workers are more likely to expect their employers to take a stand on social and political issues. Interestingly, companies that have previously taken strong positions on certain topics (e.g., the Ukraine War) are now finding themselves under pressure to address a broader array of issues, including those that may be unrelated to their core business. Nonetheless for every social issue we asked about, employers told us it had at least doubled in salience over recent years.
Employers report feeling better prepared to handle activism on topics that overlap with existing workplace policies, such as flexible working, than on polarizing issues like the Israel/Gaza conflict. As the workplace becomes more politicized, businesses must develop strategies to navigate these sensitive waters effectively.
Social media
Social media continues to be a minefield for employers. While 26% of respondents reported disciplining or dismissing employees over social media posts, many admitted to lacking clear guidelines on where to draw the line between free speech and reputational risk. Twice as many employers prioritized the potential for a post to cause offence over its impact on an employee’s ability to discharge their professional duties, even though a recent decision of the Court of Appeal suggests this is the wrong approach.
This reactive approach can lead to inconsistent decision-making and reputational damage. The report emphasizes the importance of having robust social media policies, clear internal communication, and a crisis management plan to mitigate risks and protect both the organization and its employees.
Key takeaways for employers
The findings from our report paint a challenging picture for employers, who must navigate a rapidly changing legal and social landscape. To stay ahead, businesses should consider the following steps:
Educate and train: Invest in understanding the provisions of the Employment Rights Bill and ensure that HR teams and managers are equipped to implement them effectively.
Engage with employee concerns: Develop frameworks for addressing employee activism, balancing corporate values with the need for impartiality and inclusivity.
Strengthen social media policies: Create clear guidelines on acceptable online behaviour that distinguish between personal and professional accounts, and establish protocols for handling social media-related incidents including a fair system of warnings.
Prepare for litigation: Anticipate an increase in legal challenges and take proactive steps to ensure compliance with new and existing laws.
As the workplace continues to evolve, the ability to adapt will be critical. Employers who embrace these challenges with clarity and foresight will not only mitigate risks but also position themselves as leaders in a rapidly changing world.
