New government brings new HR policies: What SMEs need to know

By RfM Transform

12 Aug 2024

pexels-pixabay-272980.jpg.jpg

With a new government in place, several significant changes to employment law are on the horizon. These changes aim to enhance employee rights and protections, but what does this mean for small businesses?

Tina Holt, HR director, details the latest updates and their implications.

Key Changes in HR Compliance:

Day-One Rights for Unfair Dismissal

Status: Proposed

Details: Under the new government, employees will have the right to unfair dismissal protection from the first day of employment, eliminating the previous two-year qualifying period. This would require SMEs to handle dismissals with the same level of care from the very start to avoid unfair dismissal claims.

Implications: If this policy comes into effect, SMEs must improve their recruitment processes to ensure they hire the right candidates and manage performance rigorously from the get-go.

Flexible Working Requests

Status: Implemented

Details: Employees can now request flexible working from their first day of employment and make up to two requests per year. Employers must respond within two months and provide a valid reason if denying a request.

Implications: SMEs may need to adapt their operational flexibility to accommodate these requests, balancing employee needs with business requirements.

Carer's Leave

Status: Implemented

Details: Employees are entitled to one week of unpaid leave per year to care for dependants, effective from the first day of employment.

Implications: SMEs must incorporate this leave entitlement into their HR policies and plan for any potential disruptions.

Redundancy Protection for Pregnant Employees

Status: Implemented

Details: Enhanced protections require employers to offer suitable alternative employment to pregnant employees and those on family leave, extending up to 18 months post-birth or adoption.

Implications: SMEs need to carefully plan redundancies and ensure compliance with these new protections.

Did you know: Brought in as part of the 2017 reforms to the Loi Travail (labour law), the French ‘right to disconnect’ allows employees to not receive, or to be able to ignore, all digital forms of work communication – phone calls, emails, texts, etc – outside of their defined and contracted working hours. 

Right to Disconnect

Status: Proposed

Details: A new policy provides employees with the right to disconnect from work communications outside of working hours.

Implications: SMEs will need to develop HR policies and build on their work culture to respect this right while maintaining operational efficiency.

Zero Hours Contracts and One-Sided Flexibility

Status: Proposed

Details: The government plans to ban exploitative zero hours contracts and ensure all jobs provide a baseline level of security and predictability.

Implications: SMEs using zero-hours contracts must review their employment practices and consider more stable arrangements for their workers.

Single Enforcement Body

Status: Proposed

Details: Establishing a Single Enforcement Body to enforce workers’ rights, including strong powers to inspect workplaces and take action against exploitation.

Implications: SMEs need to be prepared for more coordinated and proactive enforcement of employment laws.

Family-Friendly Rights

Status: Proposed

Details: Reviewing and improving family-friendly rights, including better parental leave policies and protections for pregnant workers.

Implications: SMEs will need to update their family-friendly policies to align with new legislation.

Menopause in the Workplace

Status: Proposed

Details: Thousands of women are struggling at work due to a lack of support in dealing with symptoms of menopause. The new government will require large employers with more than 250 employees to produce Menopause Action Plans, similar to gender pay gap action plans. These plans will outline how employers will support employees through menopause. Additionally, guidance will be published for small employers on measures to consider, such as uniform and temperature adjustments, flexible working, and recording menopause-related leave and absence

Implications: Menopause is a hot topic (no pun intended) and it’s great to see that women are being considered in this new piece of legislation. SMEs should take note of the upcoming guidance and consider implementing supportive measures for employees experiencing menopause to foster an inclusive workplace and enhance employee wellbeing and productivity.

Are These Changes Set in Stone?

Not yet. While some changes, such as flexible working requests and carer's leave, have already been implemented, others, including day-one rights for unfair dismissal and the right to disconnect, are still proposed and awaiting final legislation. The new government has made clear commitments to these reforms, but the specifics and timelines may evolve as the legislative process progresses.

What This Means for Small Businesses

For small businesses, these changes represent both challenges and opportunities. The enhanced protections and rights for employees necessitate updates to HR policies and processes, potentially increasing the administrative burden. However, these changes also promote a fairer and more supportive working environment, which can only enhance employee satisfaction and retention.

To effectively manage these new HR compliance changes, SMEs should take several proactive steps. At RfM Transform, we provide cost-effective and comprehensive support to help you navigate these challenges seamlessly.

Recommendations for SMEs

  • Review and Update Policies: Ensure all HR policies reflect the new laws, particularly those related to dismissal, flexible working, and employee leave.
  • Train Management: Educate managers on the new regulations and the importance of following fair procedures from the start of employment.
  • Plan for Compliance: Develop a compliance plan to manage the additional administrative tasks and ensure all new rights and protections are respected.

How RfM Transform Can Help

At RfM Transform, we can help you with all of this and more!

  • Director-led HR Support: Ensuring compliance and streamlining HR processes from as little as £65+vat per month.
  • Staff-Central People Management System: Our cloud-based app helps you manage payroll, employee records, and administrative tasks efficiently.

Ensure your business not only meets the new HR compliance requirements but also creates a positive and supportive work environment. For more detailed information and tailored solutions, get in touch RfM Transform.

Latest news

1

Bowker Motor Group marketing team wins National BMW and Porsche Awards Amy Lancaster-Hall, Marketing Manager; Freya Hesketh, Marketing & Social Media Executive; Chloe Robinson, Graphic Designer and Ellie Shaw, Social Media Expert

Bowker Motor Group marketing team wins National BMW and Porsche Awards

20 Mar 2026

2

First phase of major Blackpool town centre £17m road upgrade starts Aerial image of Blackpool town centre

First phase of major Blackpool town centre £17m road upgrade starts

20 Mar 2026

3

Breck submits planning for 64-home affordable housing scheme Bolshaw Road layout

Breck submits planning for 64-home affordable housing scheme

20 Mar 2026

4

Barons Contract Furniture announces strategic expansion with major investment in Leyland Barons Furniture expansion

Barons Contract Furniture announces strategic expansion with major investment in Leyland

19 Mar 2026

5

Pleasure Beach Resort urges support for the tourism sector as it launches its 130th season Late night at Pleasure Beach resort

Pleasure Beach Resort urges support for the tourism sector as it launches its 130th season

19 Mar 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Exploring Debt Finance: Unlocking SME Growth
LCC Event Logos
LBV Hub Exhibitions
24 Mar 2026

Exploring Debt Finance: Unlocking SME Growth

Farleys Solicitors, 3 Mead Way, Shuttleworth Mead, Padiham, Burnley, BB12 7NG

09:00 - 12:00

The Marketing Meetup Lancashire
TMM Lancs - 27th Jan.jpg.jpg
LBV Hub Networking
25 Mar 2026 - 25 Mar 2026

The Marketing Meetup Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

Invest in Pendle: A Live Celebration Event
Northlight photograph
LBV Hub
25 Mar 2026

Invest in Pendle: A Live Celebration Event

The Leisure Box, Northlight Mill, Glen Way, Nelson, BB9 5NH

12:00 - 14:00

The Employment Rights Act 2025: What you need to know
Logo.jpg.jpg
LBV Hub Seminars
26 Mar 2026 - 26 Mar 2026

The Employment Rights Act 2025: What you need to know

Lancaster & Morecambe College, Lancaster, LA1 1TZ

08:00 - 10:00

90 Day Business Planning Workshop
LBV Hub Networking
27 Mar 2026 - 27 Mar 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

The Ultimate Music Quiz
Logo.jpg.jpg
LBV Hub Fundraisers
27 Mar 2026 - 27 Mar 2026

The Ultimate Music Quiz

Morecambe Football Club, Morecambe, LA4 4TB

19:00 - 22:30

Lancashire Business Expo 2026
SE, Lancashire 2025.png.png
LBV Hub Exhibitions
27 Mar 2026 - 27 Mar 2026

Lancashire Business Expo 2026

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

RISE - a tailored 6 month leadership programme for women across the North West
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
15 Apr 2026 - 15 Apr 2026

RISE - a tailored 6 month leadership programme for women across the North West

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Sickness Absence: key actions for your business
Logo.jpg.jpg
LBV Hub Seminars
22 Apr 2026 - 22 Feb 2026

Sickness Absence: key actions for your business

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin