New employment laws coming into force in the UK could significantly affect how London hedge funds hire and retain staff, according to legal experts quoted by Financial News. The changes, set to take effect later this year, include a right for workers to request more predictable hours and a new duty on employers to prevent sexual harassment.
Key Changes in the New Legislation
The Employment Relations (Flexible Working) Act 2023 and the Worker Protection (Amendment of Equality Act 2010) Act 2023 are among the pieces of legislation that will introduce these changes. The flexible working act will require employers to respond to requests for flexible working within two months, down from the current three-month period, and will allow employees to make two requests in any 12-month period, up from one.
Additionally, the new duty to prevent sexual harassment will require employers to take reasonable steps to prevent such harassment in the workplace, with tribunals able to uplift compensation by up to 25% if they fail to do so. The laws are expected to impact the financial services sector, including hedge funds, which often rely on long hours and demanding schedules.
Impact on Hedge Fund Hiring
According to Helen Farr, a partner at the law firm Linklaters, the new laws may force hedge funds to reconsider their hiring practices. "Hedge funds are known for their intense work culture, and these changes could require them to be more flexible in how they structure roles and manage employee expectations," she said in the Financial News article.
The right to request predictable hours is particularly relevant for hedge funds that employ staff on zero-hours contracts or with variable hours, which are common in some support roles. This right will allow workers to request a more stable pattern of work, which could affect how funds staff their operations.
Preparing for the Changes
Legal experts advise that hedge funds should start preparing for the new laws now, by reviewing their current policies and procedures. This includes updating contracts, training managers on the new requirements, and ensuring that they have processes in place to handle requests for flexible working and to prevent sexual harassment.
The changes are part of a broader push by the UK government to improve workers' rights and could have a lasting impact on the culture of the financial services industry in London. As the sector adapts, it will be important for firms to balance the demands of performance with the need to comply with the new legal framework.
According to the Financial News report, the new laws are expected to come into force in 2024, giving firms a relatively short window to prepare. The exact date has not yet been confirmed, but it is likely to be in the first half of the year.
