Employment Law Changes UK Business Should Expect from the New Labour Government

For the first time in over 14 years, the new Labour government in the UK will get to set the employment law agenda after their landslide victory on 4^th July 2024.

In the lead up to the election, a large component of their manifesto was the proposed extensive reforms to UK employment law as part of their Plan to Make Work Pay: Delivering a New Deal for Working People. Upon their win, it was said that Labour would begin introducing new legislation within the first 100 days of taking office, but does not specify which particular measures will be introduced over this period. However, despite the promise of a swift turnaround, the standard implementation periods will still apply for any new laws, so we likely won’t see any of these changes go into effect for another 6-12 months.

Despite this, those employers who are aware of the impending changes can begin preparing for them sooner rather than later. Here’s a list of some of the key legislative changes to expect in the coming year:

• Unfair Dismissal – employees will be entitled to unfair dismissal rights from day one of employment instead of after two years. This helps to ensure that new hires are not terminated without cause (however, employers will still be able to operate probationary periods).
• 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. The previous code of practice that was coming into effect on 18^th July 2024 from the previous government will be replaced with a ‘strengthened’ code.
• Single Enforcement Body – Labour plans to establish a single enforcement body to enforce workers’ rights going forward, to include not only equality and human rights but other areas such as health and safety, minimum wage, and worker exploitation (trade unions and TUC will have representation in this new body). The body will have strong powers to undertake targeted and proactive enforcement work, such as unannounced inspections and following up on anonymous tips.
• Tribunal Claims – extending the time limit for bringing claims in an employment tribunal from three months to six months.
• Collective Grievances – employees will have the ability to raise grievances collectively about conduct in their workplace directly to Acas.
• Equal Pay and Action Plans – UK employers with more than 250 staff are currently required to report and publish their gender pay gap data each April, but now this will be extended to reporting and publishing data on the ethnic and disability pay gap as well. Large employers are also going to be required to develop and implement action plans to close their gender pay gaps, and must now include outsourced workers in their pay ratio reporting. These employers are also required to produce Menopause Action Plans that highlight how they will support employees going through the menopause.
• Sexual Harassment and Whistleblowing – there will be a duty to take all reasonable steps to prevent sexual harassment in the workplace, and this will be extended to third parties. Women who report sexual harassment at work will also be covered by the same protections from dismissal and detriment as whistleblowers, whose protection is also set to be strengthened for this very reason.
• Family Leave Rights – Labour plans to make various enhancements to family leave rights, including making parental leave available from day one of employment, making it unlawful to dismiss a woman during pregnancy or within six months of her return from maternity leave, and clarifying and extending bereavement leave to all employees – as well as plans to review the potential benefit of paid carer’s leave.
• Zero-Hour Contracts – ‘exploitative’ zero-hour contracts will be banned, and workers will have the right to a contract that reflects the number of hours they regularly work based on a twelve-week reference period. Workers will also receive reasonable notice of any change in shifts or working time, with compensation offered that is proportionate to the notice given for any shifts cancelled or curtailed.
• Right to Switch Off –workers will have the ‘right to switch off ‘from work outside of working hours, meaning that employers wouldn’t be allowed to contact employees outside of working hours unless under extenuating circumstances. This is to help ward off burnout and the prospect of the home becoming a 24/7 office.
• Right to Flexible Working – requesting flexible working recently became a day one right in the UK, but Labour have stated that flexible working will be made default for all workers from the first day of employment except where not reasonably feasible.
• Trade Unions – employers will be required to inform workers of their right to join a trade union. Industrial action ballot requirements will also be eased, and limitations on union workplace access will be lifted.
• National Minimum Wage – age bands will be removed from national minimum wage so that all workers are paid the same regardless of how young they are. There are also plans to expand the remit of the Low Pay Commission (which reviews and makes recommendations on the minimum wage rate) to ensure that the wage takes into consideration the cost of living.

There is a lot of change on the horizon, and so keeping in stride with it to remain legally compliant can sometimes prove tricky. If you would like to discuss the support services we can offer in implementing these legislative changes, please get in touch with me at therese@orgshakers.com