Following its landslide election victory on 4 July 2024, for the first time in over 14 years the new Labour government will now get to set the employment law agenda. The Labour Party’s manifesto promised to implement all the commitments in its Plan to Make Work Pay: Delivering a New Deal for Working People. We summarise these below.
It promises to ‘introduce’ legislation within the first 100 days of taking office but does not say which specific measures will be introduced during that period. It also promises to consult fully with businesses, workers and society on how to put its plans into practice before new employment legislation is passed, and that standard implementation periods will apply for this new employment legislation (meaning it will likely be 6-12 months at least before we see any of these changes implemented).
| Statement of particulars of employment/written statement of main employment terms | New obligation to inform employees of right to join a trade union in this written statement and to remind staff of this right on a regular basis. |
| Unfair dismissal rights from day one | Unfair dismissal rights for all employees from day one of employment, not after two years as is the current position in most cases. The current fair reasons to dismiss will remain. There will be new rules about the use of ‘fair and transparent’ probationary periods and processes. |
| Increased time limits for claims | The time limit to bring claims will be six months for all statutory employment claims – currently it is three months for unfair dismissal, discrimination and most other claims. |
| Other day one rights – parental leave, flexible working and statutory sick pay (SSP) | Right to parental leave will apply from day one, not after one year. There is a further promise to conduct a review of parental leave within the first year of a Labour government.Flexible working by default – the current government made changes to flexible working rights on 6 April 2024 (see our summary here). Labour has promised to adapt and build on this baseline and make flexible working ‘the default from day one for all workers, except where it is not reasonably feasible’. SSP will be extended to all workers (including those earning below the lower earnings limit) and the current three-day waiting period for SSP will be removed. |
| Sexual harassment | Duty to take ‘all’ reasonable steps to prevent sexual harassment, and extension of duty to harassment by third parties. This goes further than the legislation due to come into force on 26 October 2024. Strengthened protections for whistleblowers, including protection for women who report sexual harassment at work. |
| Maternity protection | It will be unlawful to dismiss a woman within six months of her return from maternity leave, with some exceptions (details of which have not yet been published). |
| Right to switch off | Labour promises to give workers the ‘right to switch off’, so ‘working from home does not result in homes turning into 24/7 offices’. Following models introduced in Ireland and Belgium, workers and employers will be encouraged to have constructive conversations and work together on bespoke workplace policies or contractual terms that benefit both parties. |
| Zero hours contracts and one-sided flexibility | ‘Exploitative’ zero hours contracts will be banned, and there is a promise to end ‘one sided’ flexibility to ensure all jobs provide a baseline level of security and predictability. Compensation to be paid by employer when shifts or working times are cancelled or curtailed without reasonable notice. New right to have a contract that reflects the number of hours regularly worked, based on a twelve-week reference period. |
| Fire and rehire | ‘Fire and rehire’ (the practice of an employer making an employee redundant and then re-engaging them on reduced terms and conditions) will be banned, and effective remedies against abuse will be introduced. The ‘inadequate’ statutory code pf practice (currently expected to come into force on 18 July 2024 – see our detailed summary here) will be replaced with a ‘strengthened’ code of practice. Labour’s plans appeared to be aimed at both collective and individual ‘fire and rehire’ scenarios. |
| Trade unions | New duty on employers to inform workers of their right to join a union. New right for unions to access workplaces in a regulated and responsible manner, for recruitment and organising purposes. Reform of various aspects of existing trade union law to remove restrictions on activity, make ballots simpler and more flexible, abolish the recently introduced minimum service levels, prevent replacement of strikers with agency workers, and change the threshold of support required for union recognition to a simple majority. Ensure trade union reps are granted sufficient time off from work (facilities time) to perform their duties. New protections against union-related intimidation, dismissal and blacklisting. New statutory rights and protections for trade union equality reps. |
| Pay and equality | Ban on using outsourcing to avoid equal pay for women. Gender pay gap reporting rules to extend to outsourced workers. Large firms to publish action plans on closing gender pay gap. Implementation of the socioeconomic duty in the Equality Act 2010 for public authorities. Preservation of EU law principles on equal pay. |
| Collective grievances | New right for workers to collectively raise grievances to Acas about conduct in their place of work. |
| Reform of minimum wage | Cost of living to be considered when setting rates. Removal of ‘discriminatory’ age bands. |
| Single status of worker | Replace the existing three categories of employee, worker and self-employed with two: worker and self-employed. This is likely to involve the extension of certain rights (such as unfair dismissal) to individuals who are currently classified as workers. |
| TUPE protection | Changes to consultation and dismissal rights. No detail has yet been published. |
| Whistleblower protection | Strengthened protections for whistleblowers. Specific protection for women who report sexual harassment at work. |
| Self-employed | New right to a written contract. |
| Bereavement leave | New right to bereavement leave for all workers. Not clear whether it will be paid or unpaid. |
| Carer’s leave | Review the implementation of carer’s leave introduced on 6 April 2024 and examine the benefit of introducing ‘paid’ carers’ leave. |
| Workplace surveillance | Requirement to consult with workforce representatives before introducing surveillance technology. Consider safeguards against ‘discriminatory algorithmic decision making’. |
| Fair allocation of tips/gratuities | Strengthening the law to ensure the fair allocation of tips, gratuities and service charges. It is not entirely clear whether this would involve changes to the Employment (Allocation of Tips Act) 2023 which was expected to come into force on 1 October 2024 (subject to implementing legislation being passed) but the suggestion that workers should ‘decide how tips are allocated’ would suggest this is likely. |
| Unpaid internships | These will be banned, except where they are part of an educational or training course. |
| Adult social care sector | A new Fair Pay Agreement will be set up to collectively negotiate better pay and conditions in the sector. |
| Education sector | Reinstate the School Support Staff Negotiating Body. |
| Menopause | Large firms (with more than 250 employees) to produce Menopause Action Plans. New guidance on supportive workplace measures/considerations. |
| Single Enforcement Body | New body to enforce all statutory employment rights, with trade union and TUC representation. This single enforcement body will have strong powers to inspect workplaces, to undertake targeted and proactive enforcement work, bring civil proceedings upholding employment rights and take action against worker exploitation. |
| Employment Tribunals | Improve and digitise the ET system and give tribunals greater enforcement powers. |
For further information, please contact:
Blair Adams, Partner, Hill Dickinson
blair.adams@hilldickinson.com
