As the new government settles into place, gets down to business, and with its first Budget looming on the horizon, there’s a lot of interest from our Forum members and micro and small business in general on potential changes to employment rules and regulations. These type of changes always make small and micro businesses nervous as they are often thought about and implemented with big business in mind and government forgets that the impacts on small and micro business are completely different from those intended. They very often add layers of cost to our businesses in terms of both time and money and this has a greater impact on many of the smaller rural businesses which already have to deal with issues like digital connectivity, transport links, lack of skilled workforce and a variety of challenges not faced by their more urban based counterparts.

So many businesses have heard of potential changes to employment law and practices but until these become clear there is a sense of nervousness in the sector.

More businesses are running trials of four-day weeks and there’s been talk of this being included in Labour’s new package of workers’ rights legislation, along with flexible working and Day One rights – although there is still uncertainty in government about what ‘probationary period’ might apply here. 

Small and micro businesses are obviously concerned about how this might work out in practice – what can they ask employees to do, what can they say no to, what’s their position if a dispute arises. It’s early days at the moment but we’ll keep an eye on what’s announced and let you know what it will mean for you.

The government has also said it plans to ban “exploitative” zero hours contracts. This has caused concern for many businesses particularly those in the hospitality industry as they rely on these contracts to function. There are also many rural businesses which use this kind of contract for seasonal work or just more part time ad hoc flexible business activities. Many of the staff on them are very happy and don’t feel exploited. So new legislation needs to be studied and analysed to see what it means for businesses.

There are also plans to increase the living wage, following a change in the remit of the Low Pay Commission. At the Rradar/Forum, we’ve had feedback from members working in the hospitality sector that their wage bills went up by between £24,000 and £32,000 following the last increase. What will 2025 bring?

With the help of in house legal experts, we’re keeping up to date with potential changes, their effects and what businesses will need to do to be compliant.

Additionally, as the head of the Forum and the Chairman of the micro business alliance, I am responding to government consultations on the effects of these possible changes on small and micro businesses, where the effects could be more keenly felt, ensuring that our members have a voice in any changes that might be made.

As always, if there’s anything you’re unclear about, we’re here to help, so please don’t hesitate to contact our team at [email protected].