With the general election getting closer, the Labour Party has set out plans for far-reaching changes to workplace rights and protections for individuals if elected. While the details may shift, these changes will have a significant impact on employers, and it is important for employers to be informed and prepare for any potential changes.
The plans are set out in the Labour Party’s “Plan to make work pay – Delivering a new deal for working people” published on 24 May 2024, which already waters down some of their original proposals on employment law.
Key proposals made by the Labour Party on employment law include:
Proposed changes to employment rights and status
The Labour Party proposes to reform employment status and create a two-tier system of “worker” and “self-employed”, instead of the current three-tier employment status system of self-employed, worker and employee.
Labour proposes to strengthen the protections afforded to all workers. The proposals intend to extend workplace rights and protections to ensure all workers have the same basic rights and protections including sick pay, holiday pay, parental leave and protection against unfair dismissal by removing the qualifying two years continuous service for ordinary unfair dismissal claims.
Labour also proposes to extend the limit for claims of unfair dismissal in the Employment Tribunal to six months, which again will open up the number of employment litigation employers could face.
Proposal to ban “fire and rehire”
Labour has been open in its criticism of “fire and rehire”, which is the practice of dismissing employees and re-engaging on new (and often less favourable) terms. Labour’s proposals include reforming the law to provide effect remedies against abuse and a strengthened statutory code of practice, in place of the one being brought into force by the current Government in July 2024.
Enhanced family-friendly rights
Labour proposes to strengthen family-friendly rights, including extending statutory maternity and paternity leave, introducing a right to bereavement leave and reviewing the shared parental leave framework. They also plan to make it unlawful to dismiss a woman during pregnancy or within six months after her return, expect in specified circumstances.
Zero hour contracts
Labour proposes to ban exploitive zero hours contracts and ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a 12-week reference period. Labour also proposes to ensure all workers get reasonable notice of any change in shifts or working times, with compensation that is proportionate to the notice given for any shifts cancelled or curtailed, ensuring workers receive a baseline level of security and predictability.
Potential timings
The Labour Party suggest if it is in fact elected, it will introduce the legislation within 100 days of entering government. Whether these changes will, and can, be implemented as quickly does remain uncertain.
Other proposals
Labour has made many other proposals to date, including:
1. Internships: Ban unpaid internships except when they are part of education or training course.
2. Wages: Minimum wage to be increased to £10 per hour.
3. Right to switch off: Right for individuals to not regularly work outside normal working hours.
4. Strengthening trade union rights: Including rights of entry into workplaces to organise, meet and represent their members, more secure electronic workplace ballots and a duty on employers to inform all new employees of their trade union options available to them.
5. Whistleblowers: Strengthen protection for whistleblowers, including by updating protection for women who report sexual harassment at work.
6. Sick Pay: Removing the lower earnings limit on statutory sick pay, removing the qualifying period of continuous service for sick pay and making it available to all workers.
7. Discrimination: Various changes proposed, including allowing equal pay claims based on ethnicity and disability.
What is next?
If Labour are in fact elected, there will certainly be a push of a host of changes within employment law. While the timelines and details may shift, it remains important for employers to be informed and prepare for any potential changes.
While many of Labour’s proposals contain more detail than others and there is likely to be a fair amount of flexibility as to what any new laws might actually mean. We do need to wait for the result of the General Election to discover who will be in power and which of their proposals will then be introduced.
For help and advice on this topic or related issues, please contact Emily Morrison by calling 01727 798106 or emailing emily.morrison@salaw.com.
