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Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Small firms prepare for end of zero-hours contracts

20 August 2024

The number of workers on zero-hours contracts has increased by 288% since 2020; however, plans by the government to crack down on unfair zero-hours contracts are likely to affect small businesses across the UK.

The government's Employment Rights Bill will introduce changes to laws around zero-hours contracts, with the King's Speech confirming that a ban on "exploitative" zero-hours contracts will be tabled.

The anticipated changes to employment law are likely to affect a number of key business sectors in the UK, especially hospitality, where 27% of staff are on zero-hours contracts. The number of people on zero-hours contracts has increased by 288% since 2020.

Digital staffing platform Coople has analysed the potential impact of changes to employment law and says that if zero-hours contracts are restricted, UK businesses may need to find alternative ways to manage staffing, particularly when both the business and the worker want flexibility in the contract. However, it suggests that a likely scenario would be that businesses could offer zero-hours contracts as long as they also offer candidates a contract with set hours.

"All companies who rely on workers on zero-hours contracts should pay close attention to the coming changes. It may be that businesses will have to find new ways of working in order to remain compliant with UK employment law." John Dawson, vice president of customer success, Coople.

Several models for flexible contracts could be considered by the government, including contracts that offer a set number of hours of work, spread out over a specific time period, while still allowing for varied hours. The UK could follow the example of countries like Germany, for example, where employers must offer a minimum number of hours per day or week.

Business insurance provider Uswitch has analysed the latest data from the Office for National Statistics (ONS) showing the number of zero-hour contract workers in the UK by industry, age and region.

Zero-hour contracts in numbers

  • Over one million people in the UK are on zero-hours contracts.
  • 10% of 16-24 year olds are on zero-hours contracts; many of these are students.
  • 5% of people over 65 are on zero-hours contracts.
  • 27% of those working in the accommodation and food industry are on zero-hours contracts.
  • London and the West Midlands are the UK's zero-hours contract hotspots.

Andy Elder, Uswitch business insurance expertsaid: "Businesses preparing for a world without zero-hours contracts must prioritise flexibility through strategic workforce planning. This involves investing in employee training, fostering a culture of adaptability, and leveraging technology to optimise scheduling.

"By creating clear, predictable work patterns and engaging in transparent communication, companies can maintain operational efficiency and employee satisfaction without relying on zero-hours contracts."

Written by Rachel Miller.

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