In May 2024, Natalie Howitt set out what changes we might see to employment law should Labour be elected, based on their manifesto.
Following their election into power, the King announced the Labour Government’s legislative programme for the new Parliamentary session at the State Opening of Parliament on 17 July 2024.
It is important that employers familiarise themselves with the proposed significant changes, as they will undoubtedly have an impact on their business.
To recap, the key changes expected to be introduced within the first 100 days of office are as follows:
1. Employees will have protection from unfair dismissal as a day one right
Currently, in order for an employee to pursue an ordinary unfair dismissal claim against their employer, they must have been employed for two years. Under The Labour government’s proposed changes, they are looking to make protection from unfair dismissal a day one right, with some exceptions.
Labour was also considering removing the cap for unfair dismissal awards; however, this has now been scrapped.
2. Statutory sick pay from day one
Statutory sick pay is currently only available to employees who have been on a period of sick leave for three days, with statutory sick pay being payable from the fourth day. Labour is planning to make this a day one right for all workers, which includes the self-employed.
3. Reforming employment law status
At present there are three types of employment status: employees, workers and self-employed, each with differing employment rights associated. Labour’s proposal is to have only one status of worker, who will have the same basic levels of protection and rights. Self-employed individuals will remain their own category.
4. Banning ‘exploitive’ zero-hours contracts
Labour intends to ban exploitive zero-hour contracts as well as banning contracts that do not provide for a minimum number of guaranteed working hours. Further, workers who work a regular shift pattern for 12 weeks or more will have the right to a regular contract.
5. Increasing wages
Labour also intends to increase the national minimum wage to at least £10 per hour for all workers, as well as pledging that this will be consistently reviewed in line with the cost of living.
6. Banning ‘fire and rehire’ practices
Currently, the Conservatives have proposed reforms on this practice following the backlash faced by P&O Ferries. However, Labour intends to go one step further and ban ‘fire and rehire’ practices. Instead, they intend to improve the information and consultations procedures as an alternative.
7. Tribunal claim time limits
In order to bring an employment tribunal claim at present, you must do so, usually, within three months. Labour however do not believe that this is a sufficient amount of time to present a claim and are looking to extend the time limitation period beyond three months.
In addition to the above, Labour plans to introduce enhanced rights for parents and carers, mandatory ethnicity and disability pay gap reporting for employers with over 250 staff, enhancing trade union rights, the right to “switch off” and plans to tackle mental health in the workplace.
Labour intends to introduce an employment bill before 12 October 2024 and therefore it’s important that employers act quickly to ensure they are prepared. If you have any questions or concerns regarding these changes and how they might impact your business, please contact a member of the employment team at employment@glaisyers.com.
