Businesses are ‘unprepared’ for the Employment Rights Bill

FGS Global’s strategic advisory and communication consultancy, FGS Global, conducted a study that included over 500 companies. The survey found that 81% of respondents expected the new legislation to increase business costs.

Nearly half of employers say they are willing to reduce plans for recruitment in order to offset the anticipated costs. Thirty three percent of employers said that they would likely cut existing positions in response to the new legal framework.

Widespread confusion

Many employers are in favor of the new legislation, especially stronger protections for sexual harassment. However, they are confused about the actual requirements. Sexual harassment is a case where 63 percent of respondents support stronger protections. However, a third were not sure of the effect of laws in place for more than three decades. A similar number of respondents expressed uncertainty regarding the upcoming changes.

Laura Farris is the Head of Litigation Communications at FGS Global and a Partner. She said: “With the new employment rights bill of the government, as well as the growing social concerns within the workplace, employers are now facing more demanding legal obligations than ever before.

“Despite this, we found that employers appeared to be confused and misunderstood the law. Many employers are exposed to a high level of reputational and legal risk. It has never been more important to have the right policies, clear internal communications, and a crisis plan in place.

Pressure to address social and politics issues

FGS Global has also observed a growing challenge in managing social and political issues at work. Employers are more prepared to deal with workplace activism such as demands for flexible working hours than politically charged issues. Only 38 percent of employers felt ready to handle staff reactions to conflicts like Israel/Gaza.

Some organisations have taken disciplinary actions in response to the behaviour of their staff on social media. According to the survey, 26 percent of respondents have disciplined an employee or fired them because of online content. The legal basis for these actions could be flawed. 60 percent of employers cited the potential for offence towards colleagues as a reason for the disciplinary procedure, which is more than twice the 26 percent that said they took into account whether the content affected an employee’s role in the workplace.

This is contrary to recent Court of Appeal cases, which indicate that interference with duties at work is the better standard.

Jenny Davey is the UK Head of Crisis and Issues Management and partner at FGS Global. She said: “With the fractious debate about free speech and the blurring of boundaries between employee behavior inside and outside the workplace, many companies are having difficulty navigating the current environment.” Social media is a major source of crisis, and the number continues to rise. Being prepared with policies, internal communication, and a crisis plan will help you avoid a reputational catastrophe.

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