The Labour Party Manifesto proposes significant changes to employment law, detailed further in their updated paper, “Labour’s Plan to Make Work Pay.” They have committed to swiftly implement these reforms, outlining a 100-day plan to do so should they be successful in the upcoming general election.
Given the significant changes proposed by the Labour Party, it is important that employers remain informed so they are able to prepare and adapt as necessary.
Here is a summary of their key proposals:
Day One Employment Rights
Unfair Dismissal Protection from Day One
Unfair dismissal protection would be given from the first day of employment, a massive reduction from the 2 years’ service currently required. It’s important to note that this doesn’t remove the right to fair dismissal for reasons such as capability, conduct, or redundancy, but it is a change employers will notice.
Labour have advised that probationary periods will still operate so that employers can assess the suitability of new starters, providing processes are fair and transparent.
Zero Hour Contracts
Ban on Zero Hour Contracts
Labour intends to ban zero-hour contracts, ensuring all employees have contracts that accurately reflect their working hours.
Fire and Rehire
Reform and Strengthen
Labour plans to reform laws to effectively counter exploitation of the fire and rehire practice, replacing the current statutory code with a more robust code of practice.
Worker Status
Simplified Worker Status
Labour aims to reduce employment statuses from three (employees, self-employed contractors, and workers) to two categories: workers (who will be given the same rights as employees now) and self-employed individuals.
Redundancy and TUPE Rights
Enhanced Redundancy Consultation and TUPE Protections
The right to collective redundancy consultation will be based on the number of affected employees across the entire business rather than a single workplace. TUPE protections will also be strengthened.
Time Off / Leave
Flexible Working: Introduction of flexible working opportunities has already become a day one right. Labour are promising to expand on this with accommodations for school term times where feasible. They would also like to see flexible working become the default position for employers.
Parental Rights: Day one rights for all types of parental leave and a full review of the parental leave system.
Maternity Discrimination: It will be unlawful to dismiss a woman who is pregnant or within six months post-return from maternity leave, except in specific circumstances.
Carers Leave: Consideration of paid carers leave following the introduction of unpaid carers leave in April 2024.
Bereavement Leave: Clarification and introduction of bereavement leave rights for all workers.
Dying to Work Charter: Employers will be encouraged to introduce measures to ensure that those diagnosed with terminal illnesses are treated with respect, dignity and are supported in the workplace.
Right to "Switch Off"
Disconnecting After Hours
Similar to models in Ireland and Belgium, Labour will ensure employees have the right to switch off from work outside normal hours, fostering constructive conversations for tailored workplace policies between workers and employers. This doesn’t stop out of hours working altogether, but removes the expectation that employees should be available and contactable regardless of their working hours.
Technology and Surveillance
Worker Privacy Protections
Proposals for new surveillance technologies will require consultation and negotiation with trade unions or elected staff representatives.
Protection for Whistleblowers
Sexual Harassment at Work
Labour will strengthen protection for whistleblowers, including by updating protection for women who report sexual harassment at work.
Fair Pay
Genuine Living Wage: Labour proposes to increase the National Minimum Wage to reflect the cost of living, remove age bands, and ensure enforcement through the Single Enforcement Body and HMRC.
Sick Pay: Removing the lower earnings limit and waiting period for Statutory Sick Pay “SSP”. Employees would be entitled to SSP from their first date of absence.
Fair Tips: Ensuring hospitality workers receive their full tips, with control over their allocation.
Internships
Ban on Unpaid Internships
Except for those part of educational or training courses.
Menopause
Menopause Action Plans
Employers with over 250 employees will need to create plans to support employees going through menopause, with guidance provided to smaller businesses.
Employment Tribunals
Digitisation and Extended Claims Period
Labour plans to digitise Employment Tribunals and extend the time limit for bringing claims from 3 months to 6 months.
Collective Grievances
Simplified Grievance Process
Facilitating easier collective grievance submissions to ACAS regarding workplace conduct.
New Rights and Protections for Trade Unions
Support for School Staff: Reinstating the School Support Staff Negotiating Body, establishing a national terms and conditions handbook, and improving training, career progression, and pay rates.
Union Empowerment: Simplifying union recognition, removing restrictions, and ensuring new employees are informed of their right to join a union.
Single Enforcement Body
Proactive Enforcement and Civil Proceedings
Labour will establish a Single Enforcement Body, with trade union and TUC representation, to ensure greater coordination in the face of complex enforcement challenges. This body will have the powers it needs to undertake targeted and proactive enforcement work and bring civil proceedings upholding employment rights.
Pay Gap Reporting
Extended Mandatory Reporting for Large Employers: Development, publication, and implementation of action plans to close gender pay gaps for employers with more than 250 staff
Disability and Ethnicity Pay Gap: Labour will also introduce mandatory disability and ethnicity pay gap reporting, alongside the existing gender pay gap reporting obligations.
Author: Sarah Mayes
