With the Labour party now in power, the UK is set to experience the most significant overhaul of employment law in 25 years. Labour’s ambitious agenda, encapsulated in their ‘New Deal for Working People,’ promises extensive reforms aimed at enhancing workers' rights and ensuring fairer workplace practices. These changes are expected to be fully implemented by the end of the year, impacting both employees and employers alike. This blog will explore the key reforms, their implications, and how businesses can prepare for these upcoming changes.
One of the most transformative changes Labour is introducing is the creation of a “single status” of worker. This will consolidate the current categories into just two: Workers and Genuinely Self-Employed. All workers will now enjoy the same basic rights and protections, including the right to bring unfair dismissal claims from day one. This means that the previous requirement of being employed for two years to qualify for unfair dismissal protection is being abolished. Additionally, the time limits for bringing claims to an Employment Tribunal (ET) will be extended from three months to six months, and the process will be digitized to streamline claim submissions.
Labour is also focusing on improving family-friendly policies:
Labour is taking a firm stance against zero-hour contracts, offering workers the right to apply for more predictable working patterns twice a year. This aims to end the uncertainty and exploitation associated with such contracts. Additionally, the practice of ‘fire and rehire’ will be heavily restricted, only allowed when a business faces survival-threatening circumstances and there are genuinely no alternatives.
In an effort to improve work-life balance, Labour is introducing a legal right to disconnect from work outside of normal working hours. This right, inspired by models in Ireland and Belgium, ensures that workers are not penalized for refusing to engage in work-related activities outside their scheduled hours. Employers will need to establish policies to respect this right and only contact workers outside normal hours when absolutely necessary.
Labour’s pro-union stance will see increased rights and protections for trade unions. This includes simplified union recognition procedures, a duty on employers to inform workers of their right to join a union, and the use of modern technology for union ballots. Collective bargaining will be supported to ensure better pay, training, and benefits for workers.
Redundancy rights will be strengthened, ensuring that consultation requirements consider the number of affected employees across the entire business rather than individual workplaces. Labour also plans to enhance protections for workers involved in TUPE (Transfer of Undertakings (Protection of Employment)) processes, although specific details are yet to be outlined.
A new Single Enforcement Body (SEB) will be established to oversee labour market regulations, aiming to minimize exploitation and discriminatory practices. This body will function similarly to the Health and Safety Executive, providing a centralized authority to enforce employment laws.
The Labour government’s extensive changes to employment law are set to bring about a fairer and more secure working environment for all. However, the new regulations will impose greater demands on employers, making it vital for them to start preparing. Employers and HR teams will need to review and possibly overhaul their current practices to comply with these new regulations. Staying informed and proactive will be key to navigating these changes successfully.
Still unsure about how the changes that could take place will affect you as an employer? Please contact us at [email protected]. We are here to support you through these changes and ensure compliance with the latest regulations.
