Health and Flexibility: New Policies on Statutory Sick Pay and Day-One Flexible Working

Statutory Sick Pay

At present, statutory sick pay is only available after three days of sick leave.

Labour’s Proposed Change

Labour’s proposals involve removing both the three-day waiting period and the lower earnings limit for eligibility.

This would mean all employees will be entitled to SSP from their first day of sickness absence and there will be no earnings requirement to be eligible..

• Expected benefits: employees can feel more comfortable taking short term sick leave, potentially leading to less long-term sick leave
• Potential Challenges: for employers, these changes will increase direct costs and administration around sick pay. It may potentially encourage higher levels of short-term sickness absence if workers know they no longer need to wait for sick pay to kick in.

Flexible Working from Day One

Flexible working arrangements can significantly improve employees’ work-life balance, leading to better mental health and increased job satisfaction.

Labour’s Proposed Change

Labour proposes making flexible working the default from the first day of employment, except where it is not reasonably feasible.

• Expected Benefits: increased employee satisfaction and retention; and potential productivity gains as employees can work during their most productive hours.
• Potential Challenges: operational difficulties in roles requiring physical presence; and ensuring fairness and consistency in implementing flexible working across the workforce.

Implementation

Employers will need to define clear criteria for when flexible working is not feasible. They will also need to provide support and training for employers to manage flexible working arrangements effectively.

Post-Maternity Leave Changes

Labour plans to make it unlawful to dismiss a woman within six months of her return from maternity leave, except in specific circumstances. This initiative aims to combat discrimination and ensure job security for new mothers.

• Expected Benefits: increased job security for working mothers.
• Potential Challenges: ensuring compliance without creating operational difficulties for businesses; and clear criteria and exceptions to avoid misuse.

New Enforcement Body for Employment Rights

The Fair Work Agency (FWA) will have powers to inspect workplaces and take legal action against employers who fail to uphold employment rights, which includes imposing fines and the use of civil proceedings.

Although the creation of a new government body to oversee employment law compliance might sound alarming to some employers, it’s really an amalgamation of existing state enforcement bodies into one.

The remit and powers of the FWA appear to be broad, meaning employers will need to make sure they take more proactive steps to comply with statutory employment rights and keep adequate records to demonstrate their compliance.