1 Unfair Dismissal
Change
Clause 19 removes the two-year qualifying period for claiming unfair dismissal, making it a right from day one of employment. The government will consult on a new statutory probationary period, with its preference being nine months.
Action
Monitor probationary periods
Begin planning to monitor and evaluate your employees more rigorously during probationary periods. Change your managers’ behaviour now with a probationary policy and training. If you wait for the legislation to change, it will be too late. Train managers to use probationary periods effectively and manage performance continuously.
2 Ending Fire and Rehire
Change
Clause 22 makes it automatically unfair to dismiss an employee for refusing a contract variation, with limited exceptions for businesses in dire financial straits.
Action
Contract practices
Review your contracts and identify those you should change in the next 12 months. Start a fair process to change them before the legislation restricts you. Assess your current practices around varying contracts so you are ready to comply with the new rules when they change. Prepare for the need to justify any contract changes.
3 Zero Hours Contracts
Change
The Bill introduces guaranteed-hours contracts for zero-hour workers, reasonable notice for shifts, and reasonable notice for shift cancellations or changes.
Action
Adjust zero hours contracts
Prepare to offer guaranteed-hours contracts to zero-hour workers and ensure your systems are in place to provide reasonable notice for shifts and cancellations. Review what you do now and how you will change it.
4 Third Party Sexual Harassment
Change
Employers must take all reasonable steps to prevent third-party sexual harassment, with potential compensation uplifts for non-compliance.
Action
Implement anti-harassment measures
Strengthen your policies and procedures to prevent third-party sexual harassment, which should include risk assessments and staff training on reporting and handling complaints. Changing company culture takes planning, time and effort, so start now.
5 Flexible Working
Change
The Bill aims to make flexible working the default unless the employer can prove it is unreasonable, though the changes are minimal compared to initial promises.
Action
Flexible working requests
Update your processes for handling flexible working requests to ensure you provide clear and reasonable explanations when denying them.
6 Leave Policies
Change
Bereavement, parental and paternity leave will become a day-one right. Bereavement leave will be extended to more relationships.
Action
Update leave policies
Revise your leave policies to accommodate the new day-one rights for paternity, parental, and bereavement leave and clarify the relationships covered by bereavement leave.
7 Enhanced Protection for New Mothers
Change
The Bill proposes stronger protections for pregnant employees and new mothers, with details to be clarified in future consultations.
Action
Enhance maternity protections
Prepare for enhanced protections for pregnant employees and new mothers, including potential extensions of protection periods.
8 Statutory Sick Pay
Change
Statutory sick pay (SSP) will be paid from the first day of sickness and the lower earnings threshold will be removed. SSP will be set as a percentage of pay.
Action
Adjust sick pay policies
Plan to remove the three-day waiting period for statutory sick pay and lower the earnings threshold. Your payroll systems will need to be adjusted accordingly. Calculate what it may cost.
9 Collective Redundancy Consultation
Change
Clause 23 reverses the Woolworths case ruling, requiring collective consultation for 20 or more proposed redundancies in the entire business, not just individual establishments.
Action
Consider the entire business
To comply with the new collective consultation requirements, ensure that redundancy plans consider the entire business rather than individual establishments.
10 Communicate Changes
Keep employees informed about upcoming changes and ensure that managers and human resources (HR) staff are trained on the new requirements and how to implement them effectively.
