A majority of UK employers are not ready for new statutory obligations under the forthcoming Employment Rights Bill – with 58 percent having “little or no awareness” of the legislative changes expected later this year, according to research.
The study, by strategic advisory and communications consultancy FGS Global, surveyed over 500 businesses and also found that 81 percent expect the legislation will lead to increased business costs.
Employers are looking to offset these anticipated expenses, with nearly half indicating they may scale back recruitment plans. Thirty-three percent said they were likely to cut existing jobs in response to the incoming legal framework.
Widespread confusion
While many employers support the intent behind the legislation, particularly stronger protections against sexual harassment, there is widespread confusion about what the law will require in practice. In the case of sexual harassment, 63 percent support enhanced protections, yet a third of respondents were unsure of the impact of laws that have existed for over three decades, while a similar number expressed uncertainty about the upcoming changes.
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Laura Farris, Head of Litigation Communications and Partner at FGS Global, said, “From the raft of new rights under the Government’s Employment Rights Bill to the rise of sensitive social issues within the workforce, employers have perhaps never faced more extensive or challenging legal obligations.
“Despite this we found a high degree of confusion with employers often appearing to misunderstand the law. This creates a significant degree of legal and reputational exposure amongst many employers. There has never been a greater imperative to be prepared with the correct policies, internal communications and a clear crisis strategy.”
Rising pressure to address social and political issues
FGS Global also noted growing challenges in managing political and social issues in the workplace. Employers feel more equipped to handle workplace-related activism, such as flexible working demands, than more politically charged matters. While 81 percent felt prepared to manage issues linked to flexible work, only 38 percent felt equipped to deal with staff reactions concerning conflicts such as Israel/Gaza.
Some organisations have taken disciplinary action in response to staff behaviour on social media. The survey shows that 26 percent have disciplined or dismissed an employee over online content. However, the legal rationale for these actions may be flawed. Sixty percent of those employers cited potential offence to colleagues as the reason for the disciplinary process, which was more than double the 26 percent who said they considered whether the content affected the employee’s professional role.
This approach is inconsistent with recent Court of Appeal case law, which indicates that interference with workplace duties is the more appropriate benchmark.
Jenny Davey, UK Head of Crisis and Issues Management and Partner at FGS Global, said, “With a fractious debate emerging about free speech in the UK, and a blurring of the boundaries between employee behaviour inside and outside of the workplace, it’s clear that many companies are struggling to navigate the current environment. The number of crises which start on social media has continued to grow, so being prepared with the right policies, internal communications and a clear crisis plan is essential to avoid sleep walking into a reputational disaster.”
