Labour plans for changes to Employment Law
What Employment Law Changes Can We Expect To See Now We Have A Labour Government
Now Labour have won the general election this post reviews Labours proposed changes to employment law. The Labour party manifesto for the 2024 General Election was published on 13 June 2024, and pledged to introduce legislation in parliament within 100 days of forming a government to bring in the proposed changes. The Employment Bill was announced in the Kings Speech on 17 July 2024 and outlined the employment law priorities for this session of parliament.
100 days from the date of the general election is 12 October 2024, which is a Saturday. New legislation is not normally raised in Parliament on Fridays so Thursday 10 October is the likely deadline.
The table below outlines Labours key proposed changes to employment law.
Short Term Changes
These are the changes that could be implemented relatively quickly, that is between September 2024 and April 2025.
National Minimum Wage |
Proposed Change/td> | Current Position |
Change the Low Pay Commissions remit to ensure the cost of living is taken into account when recommending annual increases to the NMW Rates. The age bands will also be removed creating one single hourly rate regardless of age. Tell me more … |
Currently the age bands are: 16-17, 18-20 and 21+. |
Flexible Working |
Proposed Change/td> | Current Position |
Extend this right by making flexible working the default position from day one for all workers, except where it is not reasonably feasible. Tell me more … |
Under the current regime employees have the ‘right to request flexible working’ from day one of employment. |
Sick Pay |
Proposed Change/td> | Current Position |
Strengthen Statutory Sick Pay by removing the ‘lower earnings limit’ and waiting days before SSP is paid.
The rate of pay may also be increased. |
Currently employees whose earnings are below the lower earnings limit are not entitled to SSP; for those who do qualify the first 3 days of any period of sickness are unpaid.
Statutory Sick Pay is currently £116.75 per week and is the lowest in Europe. |
Maternity, Paternity and Adoption Leave |
Proposed Change/td> | Current Position |
Enhance maternity protection to prohibit dismissal for 6 months following a return to work from maternity leave; except in specific circumstances.
Make Parental Leave a day one right. |
The ability to dismiss a woman returning from maternity leave will still be permitted but the circumstances when it would be permitted are not defined as yet.
There are different requirements for different types of parental leave; some are already day one rights whilst others have a length of service requirement. |
Carers Leave |
Proposed Change/td> | Current Position |
Enhance carer’s leave to become a paid entitlement and increase the amount of leave that can be taken. Tell me more … |
Carers Leave is currently unpaid and limited to five days in a 12 month period. Leave is also per employee not per dependant with caring needs. |
Bereavement Leave |
Proposed Change/td> | Current Position |
Extend the entitlement to two weeks of bereavement leave to all workers. Tell me more … |
Bereavement leave is currently only available to parents following the death of a child. |
Trade Union Membership |
Proposed Change/td> | Current Position |
The written statement of employment particulars (which must be given to all workers on or before the first day one employment) will need to say that workers have the right to join a trade union. All staff must be reminded of the right on a “regular” basis.. Tell me more … |
Currently employees have three months to bring most claims before an employment tribunal. |
Medium to Long Term Changes
These are the changes that will take longer to implement. Labour have committed to consult on these changes and once that process is completed the Bills would need to be approved by both the House of Commons and the House of Lords before becoming Acts of Parliament.
Unfair Dismissal |
Proposed Change/td> | Current Position |
Workers will be protected from unfair dismissal from day one of employment.
The proposed new rules will require an employer to have a fair reason and follow a fair process when dismissing an employee, regardless of length of service. Labour have said that probationary periods with a fair and transparent process will not be prevented, so we should still be able to assess new recruits and dismiss them when necessary without going through the full disciplinary or capability procedure. Employees who feel they have been unfairly dismissed will be able to make a claim for unfair dismissal. |
Currently employees are protected from unfair dismissal after accruing two years continuous service. |
Employment Status |
Proposed Change/td> | Current Position |
A single status of worker will be created for everyone except the self-employed. Everyone within the single status will be entitled to the same benefits.
A consultation will also be undertaken to determine how a simpler framework to differentiate between workers and self-employed. |
There are currently three categories of worker: ‘worker’, ’employee’ and ‘self-employed’.
The proposal will remove the distinction between the existing worker and employee categories leaving two employment statuses of worker and self-employed. |
Zero Hours Contracts |
Proposed Change/td> | Current Position |
Eliminate zero hours contracts to ensure all jobs provide a minimum level of job security and predictable hours. The plan is for workers to have contracts that represent the hours they usually work, based on a 12-week reference period and receive reasonable notice of any change in shifts or working time, with compensation proportionate to the notice given for any cancelled shift. Tell me more … |
A zero hour contract is type of casual worker contract under which someone is engaged without there being a minimum level of guaranteed work or pay. In 2015, the Conservative government banned exclusivity clauses in these types of contracts, meaning zero hours workers were free to work for other organisations. Currently, any rights that workers have in relation to shift scheduling will depend on the contractual terms in place or the shift policy in operation. |
Right to Switch Off |
Proposed Change/td> | Current Position |
Introduce a right for workers to switch off which would include a right to not routinely work outside normal working hours and not to be contacted outside normal working hours. Tell me more … |
In the UK, workers are already protected by various means including limits to working time, the requirement to provide breaks, right to respect for private and family life and an employer’s duty of care to look after their employees’ health and safety. However, there is currently no right to disconnect. |
Collective Redundancy Consultation |
Proposed Change/td> | Current Position |
Change the law on collective redundancy consultation so that the obligation to collectively consult is triggered by the number of people impacted across the business, rather than in one workplace. It is not clear whether Labour also plan to change the number of redundancies that would trigger collective consultation requirements. Tell me more … |
Currently it is the business “unit” to which the workers made redundant are assigned to carry out their duties that constitutes the establishment when counting the number of dismissals to determine whether the duty to collectively consult has been triggered.
Currently the trigger for collective consultation requirements is 20 or more employees within a period of 90 days. |
Tribunal Time Limits |
Proposed Change/td> | Current Position |
Labour intends to increase the time limit for brining tribunal claims to six months. The extension would bring the time limit in line with statutory redundancy and equal pay claims. Tell me more … |
Currently employees have three months to bring most claims before an employment tribunal. |
Fire and Rehire Practices |
Proposed Change/td> | Current Position |
Provide remedies against abuse of fire and rehire practices. Labour have highlighted three potential areas for change on fire and rehire including:
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The intention had been to ban fire and rehire practices; but the proposals confirm they will be permitted in circumstances where there are genuinely no alternatives. |
While much of the detail and ways in which Labours proposed changes to Employment Law will be introduced remain awaited, should Labour win the election, it is clear this will bring about some significant changes to UK employment law.
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