With a new government coming to power, changes are expected. Here, Golf HR’s Carolyne Wahlen examines how golf clubs might be impacted.
Employment law expert Carolyne Wahlen of Golf HR.
In recent months, we have seen a significant shift in our political landscape, with the Labour Party returning to power. During their campaign, changes to employment law were highlighted as a key priority. These proposed changes aim to address issues such as workers’ rights, job security, and fair pay, and they are expected to have profound effects on both employees and employers across the nation. This article will explore the potential impact of these employment law changes, examining the benefits and challenges they might bring.
The government hopes to announce the changes in the first 100 days, by the end of October, but it is highly unlikely, although not impossible, that they will come into effect in that time.
Day-one protection for employees
The biggest potential change is the removal of the employer’s ability to fire staff if they have less than two years’ service. Under two years you can currently just say that it is not working out, pay their notice and that is it.
The government wants to remove that loophole so that employees are protected from day one. Which means that to part company you would have to either follow the full disciplinary process, or go through a redundancy process, or give them a settlement agreement, just as you currently have to with staff over two years’ notice. There is talk of a probationary/trial period exception, so that in the first six months you can fire and not follow the full process, but that is not guaranteed.
This means that clubs will need to put a lot more time and analysis into their recruitment processes, as once you have hired someone, it is going to be more difficult to fire them. And you will need to have a rigorous performance management process in the first six months that regularly reviews and documents new staffs performance so that you have a chance to part company. No more saying after 12 months, ‘They have always been bad, can we just fire them now?’.
Minimum wage increase
The government has also proposed a significant increase in the minimum wage, aiming to align it more closely with the living wage. This move is designed to ensure that all workers, no matter what age, can afford a decent standard of living, reducing poverty and inequality.
For clubs, the wage increase presents both challenges and opportunities. You may struggle to absorb the higher wage costs, potentially leading to reduced hiring or increased prices for goods and services. However, higher wages can also lead to increased consumer spending, boosting the economy as a whole. Moreover, clubs that pay fair wages may experience lower staff turnover and higher employee satisfaction, which can ultimately improve productivity and profitability.
This is likely to come into effect next April with the regular minimum wage changes.
Work-life balance
The Labour government has also prioritised improving work-life balance for employees. Proposals include a range of day-one measures which staff have a right to from their first day of working, not only after the first six or 12 months of service. Suggestions are to support flexible working arrangements, bereavement leave, statutory sick pay, parental leave, and protections against excessive working hours (the right to disconnect).
Particularly with flexible working, the rules will change so that the request will be approved by default, and then the employer has to prove that the request will not work. The existing eight reasons for rejecting a request are unlikely to remain. By promoting a healthier work-life balance, the government aims to improve overall well-being and productivity among workers.
Zero hours contracts
One of the cornerstones of the government’s proposed changes are measures to prohibit exploitative zero hours contracts, and the gig economy workers, who often face precarious working conditions and lack of basic employment benefits. The new legislation aims to classify gig economy workers as employees rather than independent contractors, thus granting them rights to minimum wage, holiday pay, and sick leave. For clubs this means that you can no longer have a self-employed House Manager (yes, it does happen), they will have to be employees.
Stay informed
The proposed employment law changes by the new government in the UK represent a bold and ambitious effort to reshape the work market. While these changes aim to enhance workers’ rights, fair pay, job security, and work-life balance, they also present big challenges for golf clubs in terms of increased costs and administrative responsibilities. However, the long-term benefits of a more motivated, secure, and productive workforce could outweigh the initial difficulties.
As these proposals move through the legislative process, it will be crucial for employers to stay informed and engaged with the changes. Make sure that you have expert HR advice, and do not rely on a member doing the work for the club in their spare time!
