What employment law changes can we expect from the new labour government?
By Sarah Naylor
Keeping abreast of changes in employment law is crucial not only for legal professionals but also for employers and employees navigating the workplace. With the recent election of the Labour government, significant changes are on the horizon.
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The Labour Party made several promises and commitments in its “Plan to make work pay: Delivering a new deal for working people” manifesto. Labour has further promised to introduce new legislation within its first 100 days of taking office although they haven’t specifically confirmed what that new legislation will be. Our new Government has also promised to consult fully with businesses and workers on how to put its plans into practice before any new employment laws are passed. So although there is a promise of something in the first 100 days, it might be unlikely we see any changes happening that quickly.
Despite that, it is helpful to know what kind of changes are being proposed to enable businesses to prepare early for change. Here we explore the potential changes we might see coming down the line and what they could mean for companies and employees alike.
Written statement of main employment terms
There is already a legal requirement to provide this at the start of employment, but this is being bolstered with a new obligation to inform employees of their right to join a trade union. Staff must also be reminded of this right regularly.
Unfair dismissal rights from day one
To protect workers, Labour plans to reform unfair dismissal laws by removing the current qualifying period to bring a legal claim. At present, an employee must be employed for 2 years before they gain the right not to be unfairly dismissed. Labour proposes to give all employees this right from day 1 and further introduce a fast-track system for resolving disputes.
Strengthen redundancy rights
To protect workers facing redundancy, Labour proposes to strengthen redundancy rights by increasing statutory redundancy pay and providing greater support for workers facing job loss.
Increased time limits for claims
Currently, the typical time limit for bringing most claims to an Employment Tribunal claim is 3 months. The new proposal is to increase that time limit to 6 months for all statutory employment claims.
Other “day one” rights
Our new government also have proposals to bring forward other employee rights to day one of their employment, instead of having an applicable qualifying period as most do now. These further day-one rights are proposed to extend to the right to parental leave, the right to request flexible working and the extension of statutory sick pay with the current three-day waiting period being removed.
Sexual harassment
New legislation is proposed which will place an enhanced duty on employers to take all reasonable steps to prevent sexual harassment in the workplace, plus an extension of that duty to protect employees from harassment by third parties.
Maternity protection
The new proposals would make it unlawful to dismiss a woman within 6 months of her return from maternity leave. There are exceptions proposed but there are no details yet published on what they might be.
Right to switch off
This is an interesting proposal, given the rise of hybrid working which following the Covid-19 pandemic, is here to stay. Labour promises to give workers the right to switch off so that working from home does not result in homes turning into 24-hour offices. 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
The proposal is to ban controversial and potentially exploitative zero-hours contracts. Labour plans to abolish zero-hours contracts, ensuring all workers receive guaranteed hours and predictable income. This looks to establish security for workers.
Minimum wage reform
Minimum Wage Increase: The National Living Wage is set to rise significantly, with a target of reaching £10 per hour for all workers aged 16 and over. There is a further proposal to remove the current age bands which apply to minimum wage, which would be a significant and potentially costly change for employers.
The above are just some of the highlights from Labour’s proposals and it remains to be seen which of their proposals will move forward and become new legislation. What we can see is that the new government’s proposed changes to employment law represent a significant shift towards protecting workers' rights and ensuring fair treatment in the workplace. These changes will have far-reaching implications for employers, who must be aware of and adapt to new regulations and potentially reshape their business practices. For employees, these reforms promise greater security, improved working conditions, and a stronger voice in their workplaces.
As these changes unfold, staying informed and seeking expert legal advice will be crucial for navigating the evolving landscape of employment law. If you have any questions or need assistance with understanding how these changes may impact you or your business, feel free to contact our employment law specialist, Sarah Naylor at sarah.naylor@switalskis.com or call 01302 320621.